Former Government Official Blames Crypto Mining for Kyrgyzstan’s Energy Crisis

Amid growing concerns over Kyrgyzstan’s energy sector, a former government official has identified cryptocurrency mining as a major factor driving the energy crisis.

Daniya Akmatov, former director of the state investment protection organization, the Agency for Investment Promotion and Protection, addressed the challenges of Kyrgyzstan’s energy sector at a roundtable in Bishkek, local news agency Tazabek reported on Wednesday.

The former official said crypto mining is causing problems for the country’s energy sector, in addition to other factors such as the depreciation of the Kyrgyz som and poor promotion of energy investments.

"Electricity consumption has increased due to cryptocurrency mining, which has led to an energy crisis," Akmatov said. Akmatov added: "The som exchange rate is depreciating due to the appreciation of the dollar, and Kyrgyzstan is a country that relies on imports and has high tariffs. We also rely on it."

Kyrgyz President Sadyr Japarov recently proposed raising electricity prices for households to address ongoing energy shortages. Japarov said local power companies are in debt of 129 billion som ($1.5 billion), and he claimed the country’s core power infrastructure has been outdated for years due to corruption by senior state officials.

Kyrgyzstan has been trying to regulate cryptocurrency mining in the country but has yet to adopt any specific regulations.

Other countries have also blamed Bitcoin (BTC) mining on energy shortages. Abkhazia reportedly experienced power shortages as 625 crypto mining farms call the small autonomous region home.