Crypto Miners Have Been Suspended Kyrgyzstan Since September

It’s been over six months since Kyrgyzstan suspended cryptocurrency mining companies in the country, reported a local media outlet.

Before the ban, crypto mining companies had been receiving electricity directly from the Bishkek CHPP and the National Electric Network of Kyrgyzstan. The Central Asian country didn’t have any big mining companies working in the sector until earlier this year they got a big company, but there haven’t been any developments.

“We didn’t have large consumers, they received electricity directly from the Bishkek combined heat and power plant and the National Electric Network of Kyrgyzstan,” commented General Director of Severelectro Iskender Kadyrkulov on the activities of illegally operating crypto mining companies in Kyrgyzstan.

“We had small consumers. But then we revealed a big consumer of 29 kV two months ago. Since September, we suspended cryptocurrency mining companies. Today, Severelectro has no such companies,” said Kadyrkulov.

In September, Kyrgyzstan cut off power to 45 crypto mining firms because they consume more energy, 136 megawatts of electricity, than three local regions Issyk-Kul, Talas, and Naryn combined. The country has been a popular destination for mining due to its cheap energy prices.

A few months back in December, the government of Kyrgyzstan also made a proposal on electricity rates for crypto miners, set within 5 cents but since then there hasn’t been any development.

Last August, the Ministry of Economy of Kyrgyzstan submitted a draft law “On Amending the Tax Code” to introduce crypto mining taxation that has been expected to increase budget revenues — reportedly earning some 300 million som ($4.2 million) from the crypto mining.

This has been after explicitly banning crypto in July 2014 followed by the central bank issuing a warning that virtual currencies as a form of payment are illegal under the national law.

Source Link