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500 illegal crypto mining farms intercepted in Kyrgyzstan

TL;DR

TL;DR Breakdown:

  • The Kyrgyzstan SCNS has intercepted about 500 illegal crypto mining farms.
  • The farms were tapping energy from power grids, which resulted in a shortage of electricity supply.

Kyrgyzstan authorities have busted 500 crypto mining farms that were illegally operating in the country, a local news agency 24.kg reported on Saturday. The law enforcement agencies in Kyrgyzstan have been actively policing digital currency mining activities, given it draws an excessive amount of energy from the power grids that often results in a shortage of power supply. 

Kyrgyzstan busts 500 illegal crypto mining farms

The State Committee for National Security of Kyrgyzstan (SCNS) said it discovered and suppressed 500 illegal crypto mining farms being run by a citizen whose name wasn’t mentioned. The farms were illegally connected to the distribution company’s electrical networks, which drew the attention of the authorities, as crypto mining farms consume a significant amount of energy.

“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 kilowatt per hour,” the SCNS said. 

The Kyrgyzstan authorities are open to regulating cryptocurrency. However, they have always shunned illegal crypto mining farms because it’s inappropriate and places a heavy load on the power grid. In May, the State Committee for National Security confiscated about 2,000 cryptocurrency mining units that were powered using stolen electricity.

Crypto regulation in Kyrgyzstan

Following the rising interest in crypto amongst the citizens, the central bank of Kyrgyzstan began working on a draft bill for cryptocurrency regulation in the country in late November 2020. The draft legislation was proposed in January 2021, defining the government’s stance on digital currencies and how they may be used within the country.

The bill was designed in accordance with the Financial Action Task Force (FATF) guidelines and would help the Kyrgyzstan authorities to check against money laundering and terrorism financing risks in cryptocurrencies.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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