Central Asia, especially the Republic of Kyrgyzstan, has recently become a powerhouse for cryptocurrency mining farms. Businesses involved in the extraction of digital currency have indeed been drawn to the region because of its low energy costs, despite China's increasing crackdown upon that industry.
Officials in Kyrgyzstan discovered and pulled down a massive crypto mining farm in the country's northern region. According to law enforcement authorities, the unlicensed currency minting operation has caused "colossal damage" to the nation's electricity network grid, and they are still attempting to determine the damages.
The inflow of miners has been criticized for rolling blackouts, and several countries have taken steps to address a developing power shortfall.
The Kyrgyzstan government raised its electricity price for crypto mining firms, amongst many other consumers, in early October, emphasizing the energy-intensive aspect of their activities. A similar scheme has been suggested by lawmakers in neighboring Kazakhstan.
Authorities in Bishkek are also on the lookout for subterranean cryptocurrency miners. In May, law enforcement agents confiscated 2,000 mining equipment from numerous facilities minting digital money illegally throughout the capital city and Chuy area.
The State Committee for National Security (GKNB) also uncovered a big illicit mining farm in the town of Druzhba, Issyk-Ata region, during a similar operation. According to media reports, its officials have detained another 2,500 mining machines.
According to a news release published by the department and quoted by Sputnik Kyrgyzstan, the data center, which had been operated inside a greenhouse, was administered by foreign nationals. The GKNB goes on to say that their illicit operations have "caused colossal damage to Kyrgyzstan's electric networks."
Kyrgyzstan has begun to control its burgeoning cryptocurrency mining industry. The Ministry of Economy proposed a bill establishing mining taxation in August 2020. The proposal calls for a 15% tax on the price of power used to generate digital currency. The law required mining corporations to register with regulatory agencies to function in the country.
Furthermore, researchers are now attempting to assess the state's losses and determine whether the mining equipment was properly imported into the nation. The committee further stated that it is attempting to identify all those participating in the project.