<a href="https://ultramining.com/news/en/kyrgyzstans-crypto-controversy-energy-crisis-meets-potential-corruption/" rel="noopener noreferrer nofollow">Kyrgyzstan</a>, a relatively small Central Asian nation, is making significant strides in the cryptocurrency <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a>. In 2023, the country's finance ministry reported impressive tax revenue of $900,000 from <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">crypto miners</a> in the first 11 months. This surge in revenue is attributed to the increasing crypto mining activities in the country, particularly noted from the second quarter of the year. A notable increase was seen in August, with over $132,000 collected in taxes from miners, according to <a href="https://cryptonews.com/news/kyrgyzstan-raises-1m-from-crypto-mining-taxes-in-2023.htm" rel="noopener noreferrer nofollow">Cryptonews</a>.
Kyrgyzstan's crypto mining success is partly due to its unique energy resources. The country's Energy Minister, Taalaibek Ibraev, revealed that most crypto mining farms are linked to small hydroelectric power stations. Kyrgyzstan's reliance on hydropower, which constitutes nearly 90% of its electricity <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/" rel="noopener noreferrer nofollow">production</a>, makes it an attractive location for crypto mining operations seeking sustainable energy sources. The International Trade Administration highlighted Kyrgyzstan's untapped hydropower potential, capable of producing up to 142 billion kWh of energy.
The country's growing role in the crypto mining sector is further evident as it forms part of the Eurasian Economic Union (EAEU). This economic bloc, which includes <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>, Belarus, <a href="https://ultramining.com/news/en/global-bitcoin-mining-activity-soars-hashrate-hits-record-high/" rel="noopener noreferrer nofollow">Kazakhstan</a>, Armenia, and Kyrgyzstan, is planning to initiate cross-border CBDC trade by 2024. Kyrgyzstan's involvement in this initiative marks a significant step in its journey towards becoming a key player in the global crypto mining landscape.

Kyrgyzstan Gathers $900K in Mining Taxes

Ultramining_Eng

Other articles published on Dec 29, 2023

Ripple v. SEC end of 2023 case update

This Could be Why Bitcoin (BTC) Price is Chopping around $42,500

Investing $100 in Bonk, Dogecoin, and Rebel Satoshi: Road to $10,000?

Finance Adopts Generative AI with Surprising Applications

Boerse Stuttgart Digital ends year with 890,000 retail customers in Europe

Canadian crypto exchange CatalX suspends services following security incident

Join our free newsletter for daily crypto updates!