After halting the activities of a network of unauthorized mining outfits, Kyrgyzstan has taken another proactive step to combat the spread of illegal cryptocurrency mining in the nation.
The State Committee for National Security of Kyrgyzstan (SCNS) has discovered and repressed the unlawful activities of about 500 Bitcoin mining farms, according to local media outlet 24.Kg. According to the State Committee for National Security,
“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,”
It is not uncommon in Kyrgyzstan to see illegal cryptocurrency mining farms in operation. Authorities discovered a big illegal mining farm on the area of the Bishkek Free Economic Zone, according to Blockchain.News, which first reported the story in August of last year.
The mining farm was specifically established in the area to take use of the low-cost electricity available in the area. Apart from the fact that these busted crypto mining enterprises were operating in violation of the law, the activities as a whole have come under fire for their negative impact on the environment.
As a result of this environmental consideration, Chinese authorities were forced to expel miners from the nation, both legally and illegally. The eviction notice issued sparked the largest movement of Bitcoin processing power from China in history, with miners looking for new areas to set up camp in the aftermath of the notification.
While Kazakhstan, the United States, and Canada continue to be the top targets, countries such as Kyrgyzstan, which has relatively inexpensive electricity, are also being considered.
Governments and regulators are divided on how to approach cryptocurrency mining investments today; this has prompted miners to look into new sources of power in order to remain competitive. For example, the mining industry in North America is seriously contemplating switching to solar-powered energy systems.
If these renewable energy sources become the norm, a new sustainability model will be established, and nations such as Kyrgyzstan may become more crypto mining friendly as a result of this.
