• Kyrgyzstan collected $535,000 in cryptocurrency mining taxes, reflecting a 10% tax on electricity bills for mining operations.
  • South Korea delays crypto tax implementation amid political uncertainty while monitoring global policies, especially from the United States.

The Kyrgyz government’s most recent 2024 budget paper sheds insight on the growing impact of crypto mining in the country’s economy. Specifically, the crypto mining tax has brought in about $535,000 in income, which reflects the country’s ten percent tax policy applied on electricity consumption utilized for mining operations.

This number emphasizes the government’s intention to use the sector for economic development as well as the difficulties miners have keeping profitability in the face of growing running expenses.

Kyrgyzstan’s Crypto Mining Revenue Faces Significant Decline 

Revenue from taxes paid on cryptocurrency has dropped noticeably from last year. Over the first eleven months, mining’s tax payments in 2023 came to $883,000. Rising electricity bills are one of the several reasons for this over 40% drop.

Many miners have therefore cut back on their activities or looked for migration to areas with better conditions. Kyrgyzstan had 31 registered crypto mining companies as of early 2024; however, year over year, their combined tax contributions had dropped noticeably.

The difficulties transcend only financial ones. Using its plenty of water supplies, Kyrgyzstan mostly depends on hydroelectric power for its mining industry. But mining output has suffered from restrictions in energy exports brought on by agreements with surrounding nations and limits in water reservoir capacity.

Notwithstanding these challenges, the Kyrgyz government is dedicated to creating a legal framework fit for the expansion of crypto mining . Two more corporations were approved in September 2024 to start mining activities, therefore augmenting the list of companies already active inside the nation.

Such initiatives show how the government supports both economic diversification and industry regulation—often attacked for their energy-intensive character—while also supporting economic diversification.

On the other hand, CNF previously reported that the South Korean government has maintained its favorable stance on cryptocurrency.

This choice falls amid political instability after President Yoon Suk-yeol was impeached. Furthermore, South Korea closely monitors global events, particularly the cryptocurrency policies of the United States under the leadership of the incoming President-elect Donald Trump.