The Kyrgyzstan government has introduced new electricity tariffs for their consumers. The Authorities state the rising demand for electricity coming from the Bishkek region’s crypto miners. So, Kyrgyzstan crypto miners will now pay for their electricity usage at a higher rate to operate crypto mining devices. Minting digital currencies is on a rise in Kyrgyzstan. This is prompting the government to update electricity rates to “ensure the stable and reliable functioning of the energy sector.”
Planned and being implemented as a vital part of the government’s Medium-Term Tariff Policy for Electricity (2021–2025). The new electricity tariff policy is duly approved by the Cabinet of Ministers. Per the officially published document, crypto mining consumer groups now fall under the purview of being “Subjects of mining (cryptocurrency).”
The crypto mining individuals and entities in Kyrgyzstan will now pay 2.52 Kyrgyzstani som (or approximately US$0.03) per kilowatt-hour (KW/h) of electricity usage. This rate emanates from a 12.5% increase in electricity use. These rates are subject to revision considering the future inflation rate. The revised tariffs inculcate solutions to the impact of extra operating costs of Kyrgyzstan’s thermal power plants and the distribution costs. After 15 days of the publication of the official announcement (cited above), the new electricity tariff resolution stands effective.
Notably, in January 2021, the Kyrgyzstan government tabled cryptocurrencies’ regulatory framework. Then, in August 2021, Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor) prepared a crypto exchanges’ (CEXs) regulation draft provision. This development gave CEX’s a legal status of operation in Kyrgyzstan. The stipulations demand CEXs to prevent illicit money laundering and terrorism financing activities.