As of 2021, Kazakhstan is one of the major global centers 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? Zhaslan Madiyev, Deputy Prime Minister – Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan took the stage during the PlanB Conference held in Lugano on October 25, 2025 and said: “If a government does not provide adequate regulations and infrastructure and does not offer incentives, you will still see that the crypto sector will develop on its own, but in the gray zone.”
“In the early 2020s, we saw Kazakhstan become the second largest country in terms of crypto mining, in terms of global hash rate, when there was a ban on crypto mining in China,” he said.
“Suddenly, cryptocurrency miners started moving to Kazakhstan. At that time, we did not have any regulations and Kazakhstan became one of the top two countries in the world. And this prompted us to develop the law on digital assets.”
“So now we are licensing mining companies, licensing mining pools, and licensing cryptocurrency exchange companies. And we see that these clear rules of the game attract foreign investors and companies to come and use Kazakhstan as a hub for the cryptocurrency industry in the region.”
“It is important that at all levels of leadership in the country there is great support for the cryptocurrency industry. And that is the presidents and the prime ministers. They are all in favor of cryptocurrencies at the moment and are helping with all the legislation. We are being quite agile in terms of incorporating all of these necessary amendments to the legislation. We have government bodies and independent regulatory authorities that quickly enact acts regulatory measures to adjust the legislation. And our president has announced several important projects to build a cryptocurrency city, to build a cryptocurrency reserve to make it possible”
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“The cost of ruling out opportunities in France was enormous,” said two-time Bitcoin candidate to the French Legislative Council
Aurore Galvas, a two-time Bitcoin candidate for the French Legislative Council, spoke about the opportunity cost and said: “The cost of ruling out opportunities in France was huge 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, saying: “Without clear rules, I think the opportunity cost is that there will be a developing crypto industry, but in the gray area. Therefore, the monetary and fiscal authorities will not see what the flows are in this area. And that, in our opinion, poses some additional macroprudential risks.”
“At the initial stage, when there is an adoption of cryptocurrencies among the general population, there will always be some kind of gap or gap in the legislation,” Madiyev added. “There will be uncertainty because the legislation is not well developed. At the same time, there are law enforcement agencies. “People are really afraid to use cryptocurrencies because, on the other hand, there are law enforcement agencies and given the gaps in the legislation.”
This is Kazakhstan:
– 10% single tax and 0% wealth tax
– Former number 2 Bitcoin mining nation worldwide
– The world’s first Solana Economic Zone will open in 2025.The ninth 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 end up needing Bitcoin,” he 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 have seen big movements in countries like Kazakhstan; Bhutan is also an outlier: they are capturing much of their stagnant hydropower. And two years ago we saw Oman invest billions in mining infrastructure. And this measure is something really positive because it helps reduce costs, also energy costs for the public.”
“Thanks to the innovations that are happening in Bitcoin mining, it’s helping the average person. And politically, people are embracing that. And I think we’re going to see a lot more movement on that. And adoption at the national level, at the national level, is still largely among the early adopters right now. But I think energy adoption is definitely driving this 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 Advisors on Digital Assets, joined the conversation and acknowledged that governments previously viewed cryptocurrencies and Bitcoin as quasi-criminal assets that were 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 US, obviously, we have created the Bitcoin Strategic Reserve in which the Treasury is responsible for being a custodian. But that’s a direct result of the power and persistence that people created, and I think that’s an incredible thing to recognize. And I think it will change, it will really change the course of history forever.
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