Kyrgyzstan has taken another proactive approach to stem the rise of illegal cryptocurrency mining activities in the country after disrupting the activities of a network of unauthorized mining outfits.
As reported by the local media channel, 24.Kg, the State Committee for National Security of Kyrgyzstan (SCNS) has revealed and suppressed the illegal activities of about 500 Bitcoin mining farms. The State Committee for National Security said:
“More than 500 mining farms illegally connected to power grids have been revealed. 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 kilowatts per hour,”
The operation of illegal crypto mining farms is not uncommon in Kyrgyzstan. Back in August last year, Blockchain.News reported that authorities uncovered a large illegal mining farm in the territory of Bishkek Free Economic Zone. The mining farm was notably set up there to take advantage of the cheap electricity in the country. Beyond the illegality of these busted crypto mining operations, the activities as a whole have come under fire for their impact on the environment.
This environmental consideration forced Chinese authorities to push out miners, both legal and illegal, out of the country. The eviction notice issued fueled the largest migration of Bitcoin’s computing power from China, with miners in search of new hotspots to set up camp. While Kazakhstan, the US, and Canada remained the top destinations, countries like Kyrgyzstan with relatively cheap electricity are also not ruled out.
Today, countries or regulators are somewhat torn on how to embrace crypto-mining investments, a move that has pushed miners to begin exploring alternative power sources. For example, the North American mining stakeholders are notably considering the switch to solar energy systems. Should these renewable energy sources become the standard, a new sustainability model will be ushered in, and perhaps, countries like Kyrgyzstan will become more crypto mining friendly.
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