Kazakhstan Eyes Bitcoin Reserves as BTC Pulls Back to $117K

• Kazakhstan is considering adding Bitcoin to its national reserves alongside gold and foreign currencies.
• New penalties and advertising restrictions are being prepared for unlicensed crypto transactions in the country.

The Central Asian country of Kazakhstan may soon join the list of countries that place Bitcoin in their national reserves. This development comes as the cryptocurrency’s price drops to $117,000 amid a recent surge in prices. Notably, this move raises fresh questions among market participants about its long-term role in global finance.

Plans to Add Bitcoin to National Reserves Take Shape

Local news reports indicate that Kazakhstan is now considering a significant shift in how it manages its gold and foreign currency reserves. As reported, the idea is to begin investing a part of these national savings into Bitcoin and other digital currencies. 

While no official plan has been made public, it is clear the conversation is gaining momentum among top financial authorities. As highlighted in our previous news brief, Kazakhstan typically aims to fund these sovereign crypto reserves through seized digital assets and state-operated cryptocurrency mining activities.

According to the reports, one of the options being reviewed involves collecting Bitcoin as part of taxes or other compulsory payments. This would mark a new direction for the country, following in the steps of others that have started treating digital assets as more than just tradable commodities. The move could also signal a deeper acceptance of cryptocurrency in mainstream economic planning.

For Kazakhstan, this could protect its reserves from external shocks and reduce heavy dependence on traditional currencies. With global markets becoming increasingly unpredictable, Bitcoin may now be viewed as a hedge, despite its price remaining volatile. 

Proponents of this idea believe that this change could attract new investors and raise the country’s profile in the growing crypto economy. Kazakhstan is not the only country that has shown interest in adding Bitcoin to its national reserve. As mentioned in our earlier post, United States President Donald Trump signed an Executive Order to create a government-owned Strategic BTC Reserve.

In addition, CNF reported that Ukrainian lawmakers proposed a new bill that would give the National Bank of Ukraine the authority to hold digital assets, such as BTC, as part of its official reserves. 

However, as noted in our earlier post, Swiss National Bank President Martin Schlegel rejects Bitcoin as a reserve asset, showing the positive momentum is not uniform.

New Penalties Coming for Unregulated Crypto Use

Even as Kazakhstan explores holding Bitcoin as a reserve asset, it is tightening the rules on how digital assets are used within its borders. Authorities are preparing to introduce both administrative and criminal penalties for crypto activities that happen outside of approved systems.

Currently, crypto trading is only permitted through licensed platforms within the Astana International Financial Centre. Any transactions that occur outside this zone could soon be subject to legal action.

In addition, the national bank is working on new limits regarding the advertisement of cryptocurrencies, suggesting a stronger oversight of how the public interacts with them.

Together, these changes show two sides of Kazakhstan’s new approach. One is open to using Bitcoin as a national tool. The other is focused on controlling its use among regular citizens.