The Kyrgyz State Committee for National Security (SCNS) has announced that it has shut down more than 500 illegally operating crypto mining farms in Kyrgyzstan.
More than 500 mining farms were illegally connected to the power grids
A Kyrgyz citizen was illegally mining cryptocurrency by setting up mining farms and connecting them to the distribution company’s power grids. More than 500 mining farms that were illegally connected to the power grids were shut down. According to the State Committee for National Security, it should be noted that mining farms subsequently lead to a shortage of generated electricity, as one set of equipment consumes about 1,500-3,000 kilowatts per hour.
The Kyrgyz government has also confirmed its plans to enforce a regulatory framework for the crypto industry. The State Service for Regulation and Supervision Financial Market has proposed a draft crypto regulation that will govern exchanges operating in the country.
The draft supports the government’s decision to regulate the crypto exchange market and establish the legal framework for the circulation of digital assets in the country. The ministry stresses the need for crypto regulations to enable technological and innovative growth and risk control.
Kyrgyzstan has attempted to regulate the crypto industry several times
The authorities had seized 2000 mining devices earlier this year and politicians argued that since the rise of illegal crypto businesses in the country it is now time to take policy measures in this industry. Crypto mining in Kyrgyzstan experienced a radical surge after 2017, when the price of cryptocurrencies around the world began to shoot through the roof.
Kyrgyzstan has attempted to regulate the crypto industry several times in recent years by enacting regulations that targeted both the crypto mining industry and cryptocurrency exchanges. In February, the Central Bank of Kyrgyzstan planned to introduce a licensing regime for crypto exchanges to protect local investors.