Kyrgyzstan’s Tax Revenue from Cryptocurrency Miners Halves

In 2024, cryptocurrency mining taxes contributed over 46.6 million Kyrgyz soms ($535,000) to the national budget of Kyrgyzstan, according to a report by the Ministry of Economy and Finance.

However, local media report that this figure represents a 50% year-on-year decline. In 2023, miners paid 93.7 million soms (over $1 million) in taxes.

The tax rate in Kyrgyzstan is 10% of the electricity fees consumed by cryptocurrency miners, including VAT and sales tax.

According to statistics from the International Energy Agency, over 30% of the country’s total electricity supply is provided by hydroelectric power plants, though only 10% of their potential has been utilized to date.

Back in 2021, the cabinet of ministers in Kyrgyzstan approved new electricity tariffs, which included price increases for cryptocurrency mining activities.

In June 2023, the country’s president authorized the establishment of a mining farm at a hydroelectric power station generating 120 MW of electricity.