on the crypto
The theme of the use of energy necessary for the mining is increasingly on the agenda. A discussion due in particular to environmental implications that this activity can entail, such as to arouse considerable concern in world public opinion, especially when the moment in which global warming returns to make its appearance due to the campaign promoted by Greta Thunberg.
After decision taken by the Iranian government to suspend electricity supplies necessary for the calculation activity from which digital coins originate, now it is the turn of Kyrgyzstan to adopt a similar measure against 45 mining farms. The 45 companies operating in the calculation activities necessary for the extraction of cryptocurrencies that have seen their supply suspended, consumed in fact more energy than needed for the electricity consumption of three of the local regions that make up the country.
At the base of the provision, at least according to what reported by the local press agency AKIpress on September 20, there would be a lack of a defined legislative framework in Kyrgyzstan. At least this was the tenor of the statements made by Aitmamat Nazarov, the number one of the National Energy Holding. A shortcoming that has given the right to the local authorities to block the mining farm activity.
The ratio of the provision
They would admit to 136 i MW of electricity used by the incriminated mining companies. To better understand the data it will be enough to remember that it goes beyond the datum put together by the regions of Issyk-Kul, Talas and Naryn. Considering how the consumption of electricity by local companies dedicated to cryptography is not part of the Kyrgyzstan energy distribution plan, the government has finally decided to suspend the supplies, considering absolutely cryptocurrency production for the country's economy is not strategic.
The convenience of energy prices in Kyrgyzstan
The high number of mining farms present within Kyrgyzstan is explained by the fact that in this country energy costs are very low, especially if compared to those in force in the European Union. Precisely for this reason, over the last few months, many companies have been operating in the sector to decide to set up their own sites in Kyrgyzstan, in order to undermine cryptocurrencies, optimizing the costs of extracting blocks.
Faced with the arrival of these companies, at the end of August, the Kyrgyz Ministry of Economy has therefore launched a a bill that aims to expand its tax system to mining, thus increasing budget revenues.
The ban on virtual currencies
A decision, taken by the local authorities, which goes hand in hand with the call for virtual currencies, dating back to the 2014. Announcement that had followed the notice issued by the National Bank of the Kyrgyz Republic against Bitcoin and other cryptocurrencies normally used as a payment method, thus making them illegal under the law in force in the country. A decision on which the government he never backed down, despite the wide favor that digital assets are gaining in various parts of the globe.