Kazakhstan Plans $1B Crypto Fund Using Seized and Mining Assets

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The idea is to take what’s been recovered and turn it into a structured fund that feeds into the country’s broader financial strategy.Instead of stockpiling tokens directly, the fund will rely on crypto-related ETFs and shares in blockchain-focused companies. It will be overseen by the Astana International Financial Centre alongside the investment arm of Kazakhstan’s central bank.The state wants to take a more measured approach, using familiar financial tools rather than holding volatile crypto assets outright. Officials also say foreign institutional investors could be invited to join once the framework is finalized.Kazakhstan has been trying to move beyond its reliance on commodities and shift toward more diversified assets. A crypto fund gives the government a chance to tap into a fast-growing sector without diving in headfirst.Officials say the aim is to gain some of the upside without taking on the full risk that comes with holding crypto directly. This fits into the country’s wider ambitions of becoming a regional tech and blockchain leader.DISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in The government is using crypto confiscated from unlicensed miners and criminal operations as the foundation for the fund. Instead of letting those tokens sit idle, the plan is to convert them into regulated holdings that can generate returns over time.This avoids some of the risks that come with price volatility, while still giving the fund exposure to digital asset growth. It also turns a legal burden into a financial asset.If the fund works as planned, Kazakhstan might set an example for other countries, figuring out what to do with seized crypto. It could mark a shift from crypto as a regulatory problem to crypto as a managed reserve asset.This would also give the country more credibility in the global blockchain space, possibly bringing new investors and companies into its orbit. For fund managers, the project introduces a new type of government-backed client with a different kind of portfolio.DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in There are plenty of hurdles before the fund becomes a reality. Turning confiscated tokens into ETFs or equity stakes takes careful handling and strong oversight. Price swings in mining returns and low liquidity in certain investments could slow things down. And if international investors are brought in, expectations around transparency and compliance will rise. 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