Kyrgyzstan prepares to legalize cryptocurrency
Parliament of Kyrgyzstan is considering a bill on amendments to the Tax Code and regulation of activities for the extraction of cryptocurrencies.
If adopted, all miners will be subject to a single tax of 15% of the sale of digital assets. Thus, the authorities plan to increase state budget revenues 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 MPs expressed their concern about the prospects for increasing the volume of cryptocurrency mining in the country. They fear that an increase in electricity consumption could lead to overloading of the power grid 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.
text: Ivan Malichenko, photo: meria