Kyrgyzstan could be about to legalise cryptocurrency mining, and introduce a regulated tax framework for operations.

Mining or using cryptocurrencies is currently illegal in the Central Asian nation of around 6.5 million people, and in September 2019 authorities went as far as cutting power to 45 mining firms.

The biggest concern with crypto mining in the country appears to be the strain it puts on the Kyrgyz electricity grid – which is underdeveloped and already has to import a substantial amount of power. 

Despite these concerns, the country’s parliament has recently been debating a proposal to allow crypto mining subject to a 15% tax on profits generated from the sale of mined assets. 

Plans to charge crypto miners a 70% premium on their electricity bills have also been discussed.

AYO.NEWS says:

Considering that the Kyrgz Republic is poor, underdeveloped, land-locked, and rather remote, the crypto industry offers a rare opportunity to develop a lucrative new economic sector, so perhaps lawmakers should focus on improving the electrical and internet infrastructure, and encourage international crypto firms to set-up shop there?

Last year Iran also did a u-turn on crypto mining, going from raiding operations to introducing licenses for firms, after the government realised the economic potential of the industry. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020