Kazakhstan Launches National Crypto Fund and CryptoCity
Kazakhstan has launched a National Crypto Fund and CryptoCity initiative to accelerate digital finance transformation. The Kazakhstan crypto fund will accumulate bitcoin and strategic cryptocurrencies, backed by seized assets, state mining revenues and potential sovereign wealth allocations. Managed by the National Bank’s investment arm, the fund aims to hedge fiat volatility and bolster economic resilience. In parallel, CryptoCity will serve as a blockchain-focused smart zone in Alatau for token issuance, cryptocurrency payments and an expanded digital tenge CBDC. The financial regulator now accepts stablecoins for fees and has released a stablecoin rulebook. The Astana International Exchange will list Central Asia’s first spot bitcoin ETF, benefiting over 4,000 AIFC crypto and fintech firms. With 2.5–13% of global bitcoin hashrate and projected mining revenue growth by 2027, this strategy reflects a de-dollarization trend and aims to boost financial sovereignty and foreign investment. A digital assets law due in 2026 will address AML standards, energy use and legal clarity. Challenges in infrastructure and public education remain, but successful execution could position Kazakhstan as a leading global crypto hub.
Bullish
This news is bullish for BTC, as Kazakhstan’s state-backed crypto fund will create sustained buying pressure by accumulating bitcoin. The launch of CryptoCity and acceptance of stablecoins signals broader adoption and regulatory support, which can boost market confidence. Listing of a spot bitcoin ETF on Astana International Exchange may attract new and institutional investors. While challenges around legal clarity and infrastructure remain, the overall strategy enhances demand, supports price stability and underpins long-term bullish sentiment for bitcoin and the broader crypto market.