Kyrgyzstan Government Increases Electricity Tariff for Crypto Miners.
The authorities have made such decisions due to the huge energy consumption required in the cryptocurrency mining process. They updated electricity tariffs and have created different groups of consumers based on their needs. The officials listed cryptocurrency mining activities as major power consumers alongside the alcoholic beverage manufacturing industry and gold mining.
Kyrgyzstan has become one of the hotspots for the mining pools due to the ban of cryptocurrency in China earlier this year.
How is Kyrgyzstan dealing with this sudden boom?
Now, as Kyrgyzstan is an attractive mining destination, cryptocurrency mining has become one of the causes of the energy crisis in the region. This region has already been facing an energy crisis since 2017. Hence, Kyrgyzstan is making efforts to regulate the cryptocurrency sector. Last year, the National Bank of the Kyrgyz Republic introduced licensing requirements for crypto exchanges to protect local investors.
In August, Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets introduced a new regulatory framework to give legal status to crypt exchange. Authorities have also put forward a draft proposal seeking to regulate cryptocurrency so that to comply with existing anti-money laundering compliance and combating the financing of terrorism. This will also help the country generate a new stream of financial income.