Tuesday, November 30, 2021

Authorities in Kyrgyzstan shut down a crypto mining farm with 2,500 mining rigs.

The Takeaway:

Authorities in Kyrgyzstan have uncovered and shut down a large crypto mining farm with 2,500 mining rigs in the north of the country.

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The region of Central Asia, including the Republic of Kyrgyzstan, has become a hotspot for cryptocurrency mining lately since China’s crackdown. Its low energy rates have attracted companies involved in the extraction of digital coins amid an ongoing crackdown on the industry in China. The influx of these crypto miners has been blamed for electricity shortages, and some countries have been moving to mitigate a growing power deficit. 

 

Crypto miners blamed for power deficit. 

Earlier, it was reported that the Kyrgyzstan government had raised the electricity tariff for crypto mining enterprises, among other consumers, citing the energy-intensive nature of their operations. Lawmakers in neighboring Kazakhstan have proposed a similar measure. The authorities in Bishkek have also been going after underground cryptocurrency miners. In May, law enforcement agents seized 2,000 mining devices from a number of facilities minting digital currency outside the law at several locations in the capital city and Chuy region.

 

Authorities confiscated another 2,500 mining machines.

During an operation recently, the State Committee for National Security (GKNB) has busted a large illegal mining farm in the town of Druzhba, Issyk-Ata region. Its officers have confiscated another 2,500 mining machines, a media report has unveiled. According to a press release issued by the department and quoted by Sputnik Kyrgyzstan, the data center — which was running in a greenhouse — has been operated by foreign nationals. The GKNB further notes that their illegal activities have “caused colossal damage to the electric networks of Kyrgyzstan.” Kyrgyzstan has been taking steps to regulate its growing crypto mining sector in the country. In August 2020, the Ministry of Economy put forward a bill introducing taxation for mining activities. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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