Legalization of mining Bitcoin in Kyrgyzstan


The use of Bitcoin as a form of payment, has been troubled government representatives in the world. Kyrgyzstan, in Central Asia, is one of them. This nation, which recently banned the operation of farms, virtual, now poses the legalization of the mining of Bitcoin.

Although there is still concern around the issue, the authorities are looking for ways to increase revenue for the State. This situation pushes the nation to review some types of business, including the mining of Bitcoin.

The legalization initiative of the mining Bitcoin starts in the Parliament

The Parliament of the Republic of Kyrgyzstan, is debating a tax regime for miners. It is important step for the crypto community in that country. It would be a step prior to the legalization of the mining of Bitcoin.

As we said above, Kyrgyzstan aims to increase the income of the State. To do this, we have proposed the imposition of tax obligations for those who find themselves in that business.

The project under discussion includes the terms “virtual assets” and “mining” in reference to the criptomonedas. At the same time, it specifies that, on receiving the approval of the parliament, the tax would reach up to 15% of the total profits of the mining activities.

Something more about the tax to mining kyrgyz

The fiscal regime that is close to being approved, it would mean the first important step of this new stage of the criptomonedas in the country. We would be talking of the legalization of the mining of Bitcoin, as well as the decriminalization of the trade with the use of this criptomoneda as a means of payment.

In this way, the legalised mining taxes are in the region a fixed rate of 15% for the miners. This would mean, the annual revenue of some 4.2 million dollars to the budget of the State, according to official figures, around billion dollars.

On the other hand, and as a byproduct of the legalization of the mining of Bitcoin, we discuss the issue of electricity that supplies the farms. As we all know, the mining consumes significant quantities of electrical energy, which has called the attention of the authorities of the republic of Kyrgyzstan.

In this way, the kyrgyz parliament studies the application of a specific fee for the miners. The same, would be a premium of 70% over the average rate of the country.

Parliament of Kyrgyzstan would be a few steps to reach agreement for the legalization of the mining of Bitcoin. Source: Current Times.
Parliament of Kyrgyzstan would be a few steps to reach agreement for the legalization of the mining of Bitcoin. Source: Current Times.

Persist misgivings in some groups parliamentary

According to the constitution of Kyrgyzstan, no party, of the parliament (Jogorku Kenesh) can occupy more than 65% of the seats. So that achieve an absolute majority when passing a law, it’s uphill. This legislative body, is composed of five parties, which have an optical different about the topic.

As well, the deputy Aaly Karashev, showed concern for the impact that could have the legalization of the mining Bitcoin on the provision of electric service in the country. It is a delicate situation, he said, which would put at risk the service of a nation that imports more energy than it exports.

There is a history with respect to mining, which make it clear that it will not be an easy decision. In fact, in September of 2019, the nation cut off the supply to the farms, mines, alleging that this activity consumed more electricity than several provinces important joints.

Tech Junkie is a small word for Vikas Kaushik. Whether the latest game on the market or a new gadget launch he is the go-to person. He drives his motivation from the fast-paced technological advancements. He ensures that the right news reaches niche audiences. An avid biker and movie buff he has deep-rooted faith in upcoming technological inventions and is a torchbearer for the tech revolution.

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