Kyrgyzstan Authorities Reveal over 500 Illegal Crypto Mining Farms

Kyrgyzstan’s State Committee for National Security (SCNS) revealed that they have caught and shut down over 500 illegally operating Crypto mining farms that were directly connected to the power grid. Furthermore, the SCNS also highlighted the unsustainable nature of crypto mining as the mining equipment utilizes up to 3,000 kilowatts of electricity per hour.

“More than 500 mining farms illegally connected to power grids have been revealed. It should be noted that the mining farms subsequently lead to a shortage of generated electricity since one set of equipment consumes about 1,500-3,000 kilowatts per hour”, Local News Organization, 24Kg cited the State Committee for National Security.

Kyrgyzstan to lay down the regulatory framework for crypto

Kyrgyzstan government has also confirmed its plans to enforce a regulatory framework on the crypto industry. The State Service for Regulation and Supervision of the Financial Market has proposed a crypto regulations Draft to govern exchanges operating in the country.

The draft supports the government’s decision of regulating the crypto exchange market, along with stating the legal framework for the circulation of digital assets in the nation. The Ministry emphasizes the need for crypto regulations as essential in an effort towards facilitating technological and innovative growth along with risk control.

“This will reduce risks and assist in the development of innovative technologies and the formation of a digital economy, as well as lay the foundation for the development of the systemic market and create the preconditions for participation for a wider range of participants, including qualified investors and business…Regulation of the activities of crypto-exchanges will be carried out on the basis of a functional approach by the authorized body in the field of regulation and supervision of the financial market.”, stated the Ministry.

Kyrgyzstan Government argued that since the rise in illegal crypto businesses in the nation, the authorities have raided several unregistered entities, and now deems it high time to take policy-based action on the industry. Kyrgyzstan’s crypto mining operations saw a radial rise post-2017 when the price of cryptocurrencies began to shoot through the roof globally. The nation saw the increased activity of miners instead of Kyrgyzstan’s cheap electricity.

The post Kyrgyzstan Authorities Reveal over 500 Illegal Crypto Mining Farms appeared first on Coingape.

Publication date: 
09/18/2021 - 07:59
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