After interrupting the activities of a network of unauthorized mining firms, Kyrgyzstan has taken another aggressive step to combat the development of illegal cryptocurrency mining in the nation.
According to local media site 24.Kg, Kyrgyzstan’s State Committee for National Security, has discovered and suppressed the illegal operations of about 500 Bitcoin mining farms. The State Committee for National Security claims that
“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,”
Illegal cryptocurrency mining facilities are not uncommon in Kyrgyzstan. For example, authorities discovered a big illegal mining farm in the Bishkek Free Economic Zone area in August of last year. The mining farm was particularly established there to make use of the country’s inexpensive power. Beyond the illegality of these defunct crypto mining companies, the industry as a whole has been chastised for its environmental effect.
This environmental concern compelled Chinese authorities to expel both legitimate and illicit miners from the nation. The eviction notice sparked the biggest movement of Bitcoin processing power out of China, with miners looking for new places to set up shop. While Kazakhstan, the United States, and Canada remain the most popular destinations, countries with relatively low power costs, such as Kyrgyzstan, are not out of the running.
Countries and authorities are split on approaching crypto-mining investments, prompting miners to look into other energy sources. The mining industry in North America, for example, is seriously contemplating switching to solar energy systems. If these renewable energy sources become the norm, a new sustainability model will emerge, and nations like Kyrgyzstan may become more crypto mining-friendly as a result.