June 15, 2021

Kyrgyzstan prepares to legalize cryptocurrency

Kyrgyzstan prepares to legalize cryptocurrency

The Kyrgyz Parliament is considering a bill to amend the Tax Code and regulate cryptocurrency mining activities.

If accepted, all miners will belevy a single tax of 15% of the sale amount of digital assets. Thus, the authorities plan to increase revenues to the state budget by $ 4.2 million per year.

Earlier, Kyrgyzstan also raised electricity tariffs for miners by about 70% of the national average.

Despite the possibility of replenishing the treasury, during the discussion of the bill, some deputies expressed theirconcern over the prospects for an increase in cryptocurrency production in the country. They fear that increased electricity consumption could lead to congestion in energy networks and an increase in energy exports. For these reasons, in September 2019, the government banned mining in the country and cut off the supply of electricity to 45 farms.

In 2018, the Kyrgyz authorities have already discussed the issue of legalizing cryptocurrencies.