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Bitcoin mining has seen an uptick in Kyrgyzstan in the first eleven months of 2023, state media reported on Monday.&nbsp; 
<h2 id="b-bitcoin-mining-related-tax-revenue-soars-b">Bitcoin mining-related tax revenue soars</h2> 
In the first eleven months of 2023, the government of Kyrgyzstan <a href="https://akipress.com/news:752194:Public_budget_receives_78_6_million_soms_in_crypto_mining_taxes_in_2023/">collected </a>78.6 million soms, nearly $883,000 in tax revenue from Bitcoin and crypto mining, representing a significant increase from the 11.1 million soms collected in the same period a year ago. 
<h2 id="b-kyrgyzstan-s-b-b-crypto-adoption-b">Kyrgyzstan’s crypto adoption</h2> 
Virtual currency usage and mining in Kyrgyzstan have been on a <a href="https://coingape.com/kyrgyzstan-mp-recommends-creating-and-legalizing-cryptocurrency/">constant increase</a> since 2020.Moreover, the abundance of hydroelectric resources in the country creates a conducive environment for growth.&nbsp; In 2021, the country’s central bank started developing draft laws for virtual currencies to recognize the various trading exchanges.&nbsp; 
Being a resource-rich country that can produce ample amounts of energy, Kyrgyzstan holds the power to become a powerhouse for Bitcoin mining 
Back in July 2023, President Sadyr Japarov approved the establishment of a Bitcoin mining facility at the Kambar-Ata-2 Hydro Power Plant. It is the only Bitcoin mining facility in the country. 
<h2 id="b-shortfalls-in-regulation-b">Shortfalls in regulation</h2> 
Kyrgyzstan possesses profuse water resources in the form of glaciers, lakes, and rivers. Though available in abundance, the country’s resources are still underdeveloped. Previously, Kyrgyzstan went into an <a href="https://coingape.com/kazakhstan-might-have-to-shut-bitcoin-btc-mining-operations-heres-why/">energy crisis </a>when the hydropower in the country was used excessively for Bitcoin mining.&nbsp; 
That led to the government of the country taking measures to impose restrictions on bitcoin mining. Bitcoin miners also have to pay a 10% tax, which is levied on the cost of electricity, encompassing value-added and sales taxes.&nbsp; 
The amount is a bit higher than what regular customers have to pay for electricity consumption, making the whole crypto mining process a bit discouraging for users. 
Meanwhile, cryptocurrency exchanges are reportedly legal in the country, but the circulation of cryptocurrency is not regulated. The establishment of a dedicated crypto mining facility and the central bank’s efforts to regulate virtual currencies indicate a significant shift towards institutionalizing cryptocurrency in the national economy. However, challenges such as the need for more developed infrastructure and careful regulation to prevent energy crises loom large. 
The post <a href="https://coingape.com/bitcoin-mining-surge-boosts-kyrgyzstans-tax-revenue-amid-regulatory-challenges/">Bitcoin Mining Surge Boosts Kyrgyzstan’s Tax Revenue Amid Regulatory Challenges</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Mining Surge Boosts Kyrgyzstan’s Tax Revenue Amid Regulatory Challenges

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