Kyrgyzstan's crypto mining tax revenue to drop 50% in 2024

According to a budget document released by the Ministry of Economy and Finance of Kyrgyzstan, the contribution of cryptocurrency mining tax revenue in 2024 will be 46.6 million som (approximately 535,000 US dollars), a decrease of over 50% from 93.7 million som (over 1 million US dollars) in 2023. The mining tax rate imposed by the country on cryptocurrency miners is 10% of the electricity fee, including value-added tax and sales tax. Although Kyrgyzstan is considered an ideal place for mining due to its abundant undeveloped renewable energy resources, the decline in tax revenue may be related to a decrease in mining activities. According to data from the International Energy Agency, 30% of the country's energy supply comes from hydropower, but only 10% of its hydropower potential has been developed so far. (Cointelegraph)