In the burgeoning digital economy, Kyrgyzstan is emerging as a contender in the crypto mining sector, with tax revenues showing a promising increase. The nation’s Finance Ministry reports a collection of 78.6 million soms (approximately $883,000) from the industry within the first 11 months of 2023.
Despite the fluctuations in monthly tax income, with a peak in August at 11.6 million soms ($130,212), the overall trend indicates growth from the previous year’s 11.1 million soms ($133,200). These figures underscore a modest yet significant development, especially considering the current operation of a single official mining entity within the country.
Kyrgyzstan’s untapped hydroelectric resources, powered by its abundant waterways, provide a sustainable energy source for crypto mining activities. The government highlights over 35,000 km of water resources, primarily underutilized, pointing to a potential surge in eco-friendly mining operations.
The tax policy, levying a 10% charge on the electricity used by miners, integrates value-added and sales taxes, striking a balance between encouraging the nascent industry and securing fiscal benefits.
