Kyrgyzstan Raises $1m from Crypto Mining Taxes in 2023

Kyrgyzstan’s cryptocurrency mining industry is experiencing rapid growth, with the government expecting to raise more than $1 million in tax revenue from it this year. The nation’s finance ministry reported that it had already collected $900,000 in taxes from crypto miners in the first 11 months of 2023, with a significant contribution of over $132,000 in taxes received in August alone. This data suggests an increasing level of mining activity in Kyrgyzstan, which has been attributed to the affiliation between mining farms and small hydroelectric power stations. Kyrgyzstan’s abundant hydropower potential, which accounts for nearly 90 percent of its electricity production, has attracted crypto miners who are looking to utilize green energy sources. With a potential to generate up to 142 billion kWh of energy, Kyrgyzstan offers favorable conditions for cryptocurrency mining operations. Furthermore, the country is also exploring the possibility of cross-border CBDC trade within the Eurasian Economic Union, demonstrating its commitment to the digital asset industry.