As of 2021, Kazakhstan is one of the main global hubs for Bitcoin mining. The country recently created a national strategic reserve. But what could be the opportunity cost to the country if there were no regulations in place? Zhaslan Madiyev, Deputy Prime Minister – Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan, took the stage at the PlanB conference held in Lugano on October 25, 2025 and said: “If a government does not put in place proper regulations and infrastructure, and does not provide incentives, you will still see that the crypto sector will grow on its own – but in the gray area.
“In the early 2020s, we saw that Kazakhstan became the second largest country in terms of crypto mining, in terms of global hash rate, when there was a ban in China on crypto mining,” he said.
“Suddenly, cryptocurrency miners started to settle in Kazakhstan. At that time, we had no regulations and Kazakhstan became one of the top two countries in the world. And that prompted us to develop a law on digital assets.”
“So now we are licensing mining companies, giving accreditation to mining pools, and providing licenses to crypto exchange companies. And we see that these clear rules of the game are attracting foreign investors and companies to come and use Kazakhstan as a hub for the crypto industry in the region.”
“It is important that at all levels of leadership in the country there is huge support for the crypto industry. And these are the presidents, the prime ministers. They are all pro-crypto right now and helping with all the legislation. We are quite agile in terms of adopting all these necessary amendments in the legislation. We have separate government agencies and regulatory authorities that are quickly enacting regulatory acts in order to adjust the legislation. And our president has announced several important projects to building a crypto city, to build a crypto reserve to enable crypto payments in cities with merchants And so these projects are currently underway and we’re working on them and it’s important to show all this support at all levels.
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“The cost of rejecting an opportunity in France was enormous,” Bitcoin candidate told French Legislative Council twice
Aurore Galvas, a two-time Bitcoin candidate for the French Legislative Council, spoke about the opportunity cost and said: “The cost of rejecting an opportunity in France was enormous because in France, 10 years ago, we had French Bitcoiners doing Bitcoin mining. He proposed to the national energy company to do Bitcoin mining. They refused. And if they had listened, we would be debt-free now. So the cost is enormous.”
The Deputy Prime Minister of Kazakhstan agreed and said: “Without clear rules, I think the opportunity cost is that you will have a developing crypto industry, but in the gray zone. So the monetary and fiscal authorities will not see what the flows are in this area. And that poses additional macroprudential risks in our opinion.”
“In the beginning, when there is an adoption of crypto among the general population, there will always be some kind of gap or void in the legislation,” Madiyev added. “There will be uncertainties given that the legislation is not well developed. At the same time, there are these law enforcement agencies. People are really afraid of using crypto because on the other side there are law enforcement agencies and given the loopholes in the legislation.
This is Kazakhstan:
– 10% flat-rate tax and 0% wealth tax
– Former #2 Bitcoin mining nation in the world
– Launch of the world’s first Solana economic zone in 2025The 9th largest country is now a hidden crypto lab.
Here are 8 reasons why Kazakhstan should be on your radar: pic.twitter.com/4gzutNIO0n
– Alessandro Palombo (@thealepalombo) July 11, 2025
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“Bitcoin doesn’t need politicians, but politicians will eventually need Bitcoin,” said Filip Karadjordjevic, CSO at JAN3
Filip Karadjordjevic, CSO of Bitcoin technology company JAN3 said: “Bitcoin mining actively seeks out wasted energy. And it is not only a monetary renaissance, but also an energy revolution. And we’ve seen big moves in countries like Kazakhstan, Bhutan also being an exception: they’re capturing a lot of their stranded hydropower. And we saw Oman invest a billion in mining infrastructure two years ago. And this decision is really positive because it helps reduce costs, especially energy costs for the public.
“With the innovations that are happening in Bitcoin mining, it’s helping the average person. And politically, people are moving towards it. And I think we’re going to see a lot more movement in this area. And the adoption on a national scale, on a nation-state level, is still very early at the moment. But I think energy adoption is definitely moving it forward,” Karadjordjevic added.
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Key takeaways
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Bo Hines, former head of US President Donald Trump’s Council of Digital Assets Advisors, joined the conversation and acknowledged that previously governments viewed cryptocurrency and Bitcoin as an almost criminal asset used for nefarious activities.
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“ Hines, who is now a strategic advisor for digital assets and US strategy at Tether, said: “So in the United States, we obviously created the strategic reserve of Bitcoin that the Treasury is responsible for being the custodian of. But it’s a direct result of the power and perseverance that people have created, and I think that’s an incredible thing to recognize. And I think it really will change the course of history forever.
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