• Authorities in Kyrgyzstan have discovered over 500 illegal cryptocurrency mining farms

  • The State Committee for National Security (SCNS) of Kyrgyzstan revealed that they had apprehended and shut down over 500 illegally operating Crypto mining farms that were directly connected to the power grid. Furthermore, the SCNS emphasized the unsustainable nature of cryptocurrency mining, citing mining equipment that consumes up to 3,000 kilowatts of electricity per hour.

    “More than 500 mining farms have been discovered to be illegally connected to power grids. It should be noted that mining farms cause a shortage of generated electricity because one set of equipment consumes approximately 1,500-3,000 kilowatts per hour”, according to the State Committee for National Security, quoted by Local News Organization, 24Kg.

    Kyrgyzstan will establish a crypto regulatory framework.

    The Kyrgyz government has also confirmed its intention to impose a regulatory framework on the cryptocurrency industry. The State Service for the Regulation and Supervision of the Financial Market has proposed a draft crypto regulations to govern exchanges operating in the country.

    The draft supports the government’s decision to regulate the crypto exchange market, as well as establishing the legal framework for digital asset circulation in the country. The Ministry emphasizes the importance of crypto regulations in facilitating technological and innovative growth as well as risk management.

    “This will reduce risks and aid in the development of innovative technologies and the formation of a digital economy, as well as lay the groundwork for the development of the systemic market and create the conditions for participation by a broader range of participants, including qualified investors and businesses… The Ministry stated that “regulation of crypto-exchange activities will be carried out on the basis of a functional approach by the authorized body in the field of financial market regulation and supervision.”

    The Kyrgyz government argued that since the rise in illegal crypto businesses in the country, authorities have raided several unregistered entities, and it is now high time to take policy-based action on the industry. Kyrgyzstan’s crypto mining operations experienced a radial increase after 2017, when the price of cryptocurrencies began to skyrocket globally. Instead of Kyrgyzstan’s cheap electricity, the nation saw an increase in mining activity.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0