Kazakhstan is moving fast to formalize crypto into state strategy. President Kassym-Jomart Tokayev has proposed creating a State Fund of Digital Assets to centralize digital finance, build a strategic crypto reserve and support a smart-city payments ecosystem. The plan ties licensed crypto providers at the Astana International Financial Centre, miners paying taxes, banks and telecoms to a broader effort that also targets online fraud and biometric ID systems. Who, what, when, where, why and how are clear: this is a 2024–25 agenda to harness crypto adoption while tightening oversight.
Why Kazakhstan plans it
The proposal responds to rising local adoption and growing tax revenues from mining and licensed crypto firms. Licensed providers at the Astana International Financial Centre reported steady ownership growth and contributed taxes in the first eight months of 2024. Mining activity added material revenues over ten months, but unlicensed operations remain a concern. Tokayev is pushing the State Fund of Digital Assets to capture value and reduce shadow-market risks while exploring reserve diversification.
National Bank’s Investment Corporation
Officials envision the National Bank’s Investment Corporation managing the State Fund of Digital Assets, providing a formal channel for any crypto allocations. That structure mirrors sovereign reserve governance and could let Kazakhstan invest national assets into selected cryptocurrencies under professional oversight. Putting the fund under the investment arm aims to balance opportunity with macroprudential control and align crypto holdings with currency and asset-management priorities.
Digital finance and regulation
Legislation is in motion to strengthen crypto regulation and financial oversight. New measures would tighten bank and telecom supervision, license providers, and create consumer protections to limit fraud. The government proposes an anti-fraud center and biometric ID integration as part of a wider digital finance upgrade. These moves aim to keep customer onboarding compliant while reducing scams that can chill mainstream adoption.
Alatau City payments
Alatau City, a $7.2 billion smart-city project near Almaty, is central to Tokayev’s vision for cryptocurrency payments in everyday life. Developers plan digital-first infrastructure that supports cryptocurrency payments across transit, utilities and retail. Integrating the State Fund of Digital Assets with Alatau City could provide liquidity and real-world use cases, showcasing how strategic reserves and municipal tech can co-exist.
Mining tax revenues
Tax receipts from mining have helped build the case for formal crypto policy. Recorded mining tax revenues in 2024 demonstrate a taxable base worth protecting and encouraging under license. The government wants to bring unlicensed miners into the regulated economy, reducing electricity strain and increasing transparency. A regulated mining sector feeds both public revenues and the credibility of any state-level digital asset holdings.
Biometric ID and anti-fraud
Security features like biometric ID and a national anti-fraud center are part of the rollout. Authorities argue that identity verification and robust fraud monitoring will make financial services safer and help banks and crypto firms meet compliance expectations. Those tools also support the operational integrity of a State Fund of Digital Assets by reducing theft, wash trading and other abuses that could compromise public holdings.
Astana International Financial Centre
The Astana International Financial Centre (AIFC) is billed as the hub for licensed crypto activity and a point of coordination. AIFC firms have already contributed tax revenue and provide a regulated pathway for exchanges, custodians and service providers. Tying the State Fund of Digital Assets to the AIFC ecosystem reinforces investor confidence and could attract institutional partners seeking a compliant regional base.
Next steps for adoption
Implementation will require clear regulation, audited custody, and political consensus. Authorities must balance innovation with safeguards to avoid market shocks, especially if national reserves gain crypto exposure. For investors and residents, the path offers clearer services, new payment rails in Alatau City, and potential macro benefits from diversified reserve policy. Still, watch for details on asset selection, custody providers, and how the fund will interact with existing foreign-exchange rules.
Frequently asked questions about State Fund of Digital Assets (FAQ)
What is the State Fund of Digital Assets?
It is a proposed sovereign vehicle to pool and manage selected cryptocurrencies and digital assets under the National Bank’s Investment Corporation to support national reserves and strategic digital finance goals.
How will it affect Kazakhstan’s crypto regulation?
The fund is part of a broader regulatory push that includes licensing, banking oversight, biometric ID and an anti-fraud center to formalize the sector and protect consumers.
Will Alatau City accept cryptocurrency payments?
Yes. The smart-city plans include digital payments infrastructure designed to support cryptocurrency transactions across public and private services.
Who benefits from this initiative?
Licensed crypto providers, regulated miners, banks, telecoms, and citizens using digital payments could benefit through improved services and clearer rules. The state may benefit from diversified reserves and tax revenue.
Are there risks?
Yes. Market volatility, custody failures, and governance lapses pose risks. Strong oversight, transparent asset selection, and secure custody are essential to mitigate those risks.
Sources to this article
Tokayev, K-J. (2024) Presidential address on digital finance and smart city initiatives. Government of Kazakhstan.
Astana International Financial Centre (2024) Tax data and licensed provider reports. AIFC Annual Report.
National Bank of Kazakhstan (2024) National Bank’s Investment Corporation statement on asset management.
Ministry of Digital Development (2025) Alatau City project overview and smart-city payment plans.
