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News

Kyrgyzstan Crypto Mining Tax Revenues Drop Over 50%

15 hours ago - Around 2 mins mins to read

Key Points:

  • Kyrgyzstan crypto mining tax revenue fell by over 50% in 2024, generating 46.6 million soms.
  • Kyrgyzstan remains an attractive hub for crypto miners due to its renewable energy resources, with 30% of its energy supply from hydropower.
  • Only 10% of Kyrgyzstan’s hydropower potential is developed, highlighting growth opportunities.
Kyrgyzstan crypto mining tax revenues significantly decreased in 2024, at a time when the value of digital assets is growing worldwide.
Kyrgyzstan Crypto Mining Tax Revenues Drop Over 50%

Read more: Russian Crypto Mining Ban Now Active In 10 Regions

Kyrgyzstan Crypto Mining Tax Revenue Drops Over 50% in 2024

The Ministry of Economy and Finance reported that taxes on Kyrgyzstan crypto mining contributed 46.6 million Kyrgyzstani soms, or about $535,000, to the national budget this year. For comparison, that’s more than a 50% drop from the 93.7 million soms extracted in 2023, which equals $1 million.

This is evidenced by the downward trend as early as August, with tax receipts from crypto mining falling almost 30% in the first seven months of 2024 compared to the same period last year. According to officials, the revenues declined owing to decreased mining activities, although Kyrgyzstan is an attractive place for the mining of cryptocurrency because of its rich renewable resources.

Underdeveloped Hydropotential of Kyrgyzstan

The country levies a 10% tax on the consumption of electricity by crypto miners, which also includes VAT and sales tax. Kyrgyzstan relies on renewable energy, mainly hydropower, which has been an attractive factor for miners.

According to the International Energy Agency, 30% of the country’s energy supply is covered by hydropower. However, only 10% of the nation’s hydropower potential has been developed so far, indicating untapped opportunities for growth in sustainable energy projects.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Kyrgyzstan Crypto Mining

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.