In 2024, the tax revenue from cryptocurrency mining in Kyrgyzstan fell by over 50%, amounting to 46.6 million soms, roughly 535,000 USD. This significant decline contrasts with the previous year’s collection of over 1 million USD, even amid rising cryptocurrency values.
Kyrgyzstan’s tax system for cryptocurrency miners is based on a 10% charge on electricity costs, which includes taxes. Despite Kyrgyzstan’s vast renewable energy resources, particularly in hydroelectric power, only 10% has been realized, offering potential growth in the crypto mining industry.
With 90% of Kyrgyzstan’s hydropower potential still untapped, the country has a MAJOR opportunity for economic growth through cryptocurrency mining. Directing excess energy to Bitcoin mining could stabilize energy grids, converting surplus into digital assets and supporting economic and energy regulation.
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