Since 2021, Kazakhstan is a top global hub for Bitcoin mining. The country recently created a national strategic reserve. But what could be the opportunity cost for 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 during PlanB Conference held in Lugano on 25 October 2025 and said, “If a government doesn’t give proper regulations, infrastructure, and doesn’t give incentives, you will still see that the crypto sector will develop on its own – but in the grey 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, crypto miners started to move to Kazakhstan. At that time, we didn’t have any regulations, and Kazakhstan became one of the top two countries in the world. And this triggered us to develop the law on digital assets.”
“So now we are licensing mining firms, giving accreditation to mining pools, and providing licenses to crypto exchange firms. And we see that these clear rules of the game attract investors and foreign companies to come and use Kazakhstan as a hub for the crypto industry in the region.”
“It’s important that at all senior leadership levels in the country, there is a huge support for the crypto industry. And that’s Presidents, Prime Ministers. They’re all being pro-crypto right now and helping with all the legislation. We’re being quite agile in terms of taking all these necessary amendments into legislation. We have separate government bodies and regulatory authorities that quickly enact regulatory acts in order to adjust the legislation. And our President has announced several important projects to build a crypto city, to build a crypto reserve to make possible crypto payments in the cities with the merchants. And so these projects are currently underway and we are working on that. And it’s important to show this whole support at all levels.”
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“The Cost Of Dismissing Opportunity In France Was Huge,” Said Twice Bitcoin Candidate To French Legislative Council
Aurore Galvas, twice Bitcoin candidate to the French Legislative Council spoke about opportunity cost and said, “The cost for dismissing opportunity in France was huge because in France, 10 years ago, we had French Bitcoiners who do Bitcoin mining. He proposed to the national company of energy, to do Bitcoin mining. They refused. And if they had listened, we would be debt free now. So the cost is huge.”
Kazakhstan Deputy PM agreed and said, “Without clear rules, I think that the opportunity cost is that you will have a developing crypto industry, but in the grey area. So the monetary and fiscal authorities will not see what the flows are in this area. And that poses some additional macro prudential risks in our opinion.”
“The early stage, when there is a crypto adoption among the general population, there will always be a kind of a gap or a void in the legislation,” Madiyev added. “There will be uncertainties given that the legislation is not well-developed. At the same time, there are those legal enforcement agencies. People really get scared of using crypto because, on the other side, there are legal enforcement agencies and given the gaps in the legislation.”
This is Kazakhstan:
– 10% flat tax & 0% wealth tax
– Former #2 Bitcoin mining nation globally
– World's first Solana Economic Zone launched 2025The 9th largest country is now a hidden crypto laboratory.
Here are 8 reasons why Kazakhstan should be on your radar: pic.twitter.com/4gzutNIO0n
— Alessandro Palombo (@thealepalombo) July 11, 2025
“Bitcoin Doesn’t Need Politicians, But Politicians Will End Up Needing Bitcoin,” Said Filip Karadjordjevic, CSO At JAN3
Filip Karadjordjevic, CSO at Bitcoin technology company JAN3 said, “Bitcoin mining actively seeks stranded wasted energy. And it’s not only a monetary renaissance, but it’s also an energy revolution. And we’ve seen some great movements from countries like Kazakhstan, Bhutan is an outlier as well – they’re capturing a lot of their stranded hydroelectricity energy. And we saw Oman two years ago investing one billion into mining infrastructure. And this move is something that’s really positive because it helps to lower costs, energy costs for the public as well.”
“Thanks to the innovations that’s happening within Bitcoin mining, it’s helping the average person. And politically, people are switching on to that. And I think we’re going to see a lot more movement in that. And adoption nationwide, nation-state-wise, is still very much in early adopters at the moment. But I think the energy adoption is definitely pushing it forward,” Karadjordjevic added.
Key Takeaways
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Bo Hines, who is the former head of US President Donald Trump’s Council of Advisers on Digital Assets, joined the conversation and acknowledged that previously governments viewed cryptocurrency and Bitcoin as almost a criminal asset that was used for nefarious activity.
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“Hines, who is now the Strategic Advisor for Digital Assets and US Strategy at Tether, said, “So in the US, obviously, we’ve created the Strategic Bitcoin Reserve in which the Treasury is responsible for being a custodian over. But that’s a direct result of the power and persistence that the people created, and I think that’s an incredible thing to recognize. And I think that it will change the really change the course of history forever.
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