Kyrgyzstan National Security Committee (SCNS) announced that it has identified more than 500 crypto mining farms that are directly connected to the electricity grid. Announcing the shutdown of all relevant networks, the committee stated that farms consume up to 3,000 kilowatts of electricity per hour, noting that crypto mining is unsustainable.
“Committee stating that more than 500 crypto mining farms illegally connected to power grids consume too much energy. It was stated that a crypto mining farm consumes about 1,500-3,000 kilowatts per hour, mining activities could lead to electricity shortages across the country.”
Government Prepares to Regulate Cryptocurrencies
The Kyrgyzstan government has confirmed that some regulations for the cryptocurrency industry are also on the way. The State’s Regulatory and Supervisory unit has proposed to the government a draft cryptocurrency regulation that would also shut down the exchanges operating in the country.
The draft is designed to support the government’s decision to regulate the crypto exchange market, and it also sets the legal framework for the circulation of digital assets in the country. The Ministry emphasized that this regulation includes the necessary regulations for the more effective use of the technological innovation brought by cryptocurrencies and for the control of the risks brought by cryptocurrencies.
“These regulations will mitigate risks and assist in the development of innovative technologies and the formation of a digital economy, while also laying the foundation for systematic market development and creating a prerequisite for the participation of large masses, including qualified investors, in the cryptocurrency market.”
The Kyrgyzstan government recently announced that they have raided illegal crypto mining farmers at many different locations. According to the government, we are in one of the best times to make the right regulations regarding the cryptocurrency markets. Cheap electricity prices in Kyrgyzstan caused crypto mining farms to become widespread in the country after 2017, and these farms caused irregular and excessive electricity consumption.