Kyrgyzstan increases electricity prices for cryptocurrency miners-mining Bitcoin messages

The Kyrgyz government recently revised its electricity tariffs for various consumer groups. The authorities in Bischkek have increased prices to which crypto mining companies buy electricity, citing the energy-intensive nature of the coin embossing process.

crypto miner in Kyrgyzstan pay more for electricity

companies that operate crypto mining systems in Kyrgyzstan must pay a higher price for the electrical energy that they need to emboss digital currencies. The increase follows a government decision to update the electricity tariffs across the board in order to "ensure the stable and reliable functioning of the energy sector".

according to an official Announcement , the changes are part of the state for electricity (2021–2025), which was approved by the ministerial cabinet. “Mining entities (cryptocurrency)” is one of the 14 groups of end users affected by the revision. The basic tariff for consumers in this category is calculated with a multiplication factor of 2.0, as indicated in the published documents.

crypto miner pay 2.52 Kyrgyz somed (less than $ 0.03) for every kilowatt hour of electricity that you consume. The new sentence is the result of an increase of 12.5 %, as government numbers show. In the remaining four years of the period covered by the new tariff policy, prices are adapted every year to reflect the average annual inflation rate.

authorities in Kyrgyzstan have listed crypto mining farms alongside companies in the gold mining industry and manufacturers of alcoholic beverages as consumers who need a significant power supply. The revised tariffs for these users take into account the additional operating costs of the country's thermal power plants and the costs of distribution, the government said.

The region of Central Asia, in which the Republic of Kyrgyzstan is located, has developed into a hotspot for mining cryptocurrencies and attracts miners with its low electricity prices. The government in Bischkek has taken steps to regulate the growing industry.

In August 2020, the Ministry of Economic Affairs has a invoice To introduce. The draft law provides for a tax of 15 % on the electricity costs that are used to shape digital currencies. The legislation stipulates that mining companies have to apply for registration in order to be legally active in the country.

Do you believe that Kyrgyzstan will keep its electricity prices low enough to continue to attract cryptocurrency miners? Tell us in the comment area below.

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