Written by Helen Partzstaff writerReviewed by Igor Belkinformer editorKyrgyzstan Cuts Off Power to 45 Crypto Miners for Overconsumption
Latest NewsPublishedSep 20, 2019
The move came after 45 crypto mining firms used more power than three regions combined.
Kyrgyzstan has cut off power to 45 crypto mining firms as they consumed more energy than three local regions combined.
Senior energy official Aitmamat Nazarov has warned cryptocurrency mining is not defined under Kyrgyzstan law, local news agency AKIpress reported on Sept. 20.
136 MW of electricity used
According to Nazarov, 45 crypto miners consumed 136 megawatts of electricity, which is more than the amount consumed by three Kyrgyzstan regions: Issyk-Kul, Talas and Naryn.
Cheap energy pricing
Kyrgyzstan has become a popular site for global cryptocurrency mining firms due to cheap energy prices.
In August, the country’s Ministry of Economy submitted a draft law in order to introduce cryptocurrency mining taxation — a move designed to boost revenues.
Cryptocurrencies were banned in Kyrgyzstan in July 2014 after the national bank warned it is illegal to use Bitcoin (BTC) and other cryptocurrencies as a payment method.
Iran, which has also been cutting off electricity to local mining farms, has proposed registering crypto miners on an annual basis in a move to regulate the industry.
Subscribe to daily byte-sized crypto news from Cointelegraph
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
