Kyrgyzstan Bans Crypto Mining - Energy Crisis On Hike.

Kyrgyzstan Bans Crypto Mining - Energy Crisis On Hike.

2021-04-28 | Selina Mathew

Kyrgyzstan Bans Crypto Mining - Energy Crisis On Hike.

Amid growing concerns over the energy crisis in Kyrgyzstan, a former government official has argued that cryptocurrency mining might be a leading factor driving the energy crisis. The former director of the state investment protection organization, Daniyar Akmatov, the Investment Promotion, and Protection Agency, outlined the challenges in Kyrgyzstan’s energy sector at a roundtable in Bishkek, a native press agency Tazabek reported earlier on Wednesday. The former official added that cryptocurrency mining is causing issues for the nation’s energy sector, alongside other factors just like the devaluation of the Kyrgyz som as well as poor promotion of energy investment.
“Consumption of electricity due to cryptocurrency mining has increased and this has led to an energy crisis,” Akmatov added, explaining: “The som is depreciating due to the increase within the dollar rate of exchange, and Kyrgyzstan is an import-dependent country and tariffs also depend upon it.”
Kyrgyzstan President Sadyr Japarov recently proposed raising household tariffs for electricity as to how to deal with the continued energy shortage. Japarov added that the native power firms are 129 Bln soms [$1.5 Bln] in debt, and he claimed that the country’s core power infrastructure has been outdated for years due to corruption among top state officials. Kyrgyzstan has sought to manage cryptocurrency mining activities within the country but is yet to adopt any concrete regulations. Other countries have also blamed Bitcoin [BTC] mining for the energy shortages. Abkhazia has experienced an electricity crunch reportedly due to the 625 cryptocurrency mining farms that decision the small autonomous region home.

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