Amid Electricity Shortages, Kosovo Government Places Ban On Crypto Mining

On Tuesday, Kosovo ban crypto mining in an attempt to decrease electricity usage. This comes as Kosovo is facing its worst energy crisis for a decade due to electricity interruptions.

Kosovo Bans Crypto Mining Operations

The government of Kosovo decided to end crypto mining due to power shortages in winter.

According to a report by local newspaper Gazeta Express, Kosovo’s Minister of Economy, Artane Rizvanolli, has decided to ban crypto mining following a recommendation from the Technical Committee on Emergency Measures for Energy Supply.

The government made the decision after Kosovo’s energy supply fell below the required level, and it began imposing electric power cutbacks during high usage hours, according to the article.

The law enforcement agencies are expected to step in to stop the production of cryptocurrency currencies and to find places that such operations occur.

Artane Rizvanolli is the Economy and Energy Minister.

“All law enforcement agencies will stop the production of this activity in cooperation with other relevant institutions that will identify the locations where there is cryptocurrency production.”

Rizvanolli reports that the government has formed a technical committee in response to the crisis. Last week, the government decided to take immediate actions in response to the committee’s recommendations, including prohibiting crypto mining over Kosovo’s borders.

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Winter is coming

Gazeta express reports that in December the government declared a State of Emergency for 60 Days. It allowed for more money to be allocated for energy imports as well as power reductions.

As the colder season approaches, fears of an energy crisis were rekindled by Russia’s low supplies. This prompted European gas prices to soar more than 30 percent on Tuesday.

An anonymous miner told Reuters that he has 40 GPUs (Graphics Processing Units) and spent approximately 170 euro per month on power. He also earns about 2,400 euros per monthly from mining.

Cryptocurrency mining has become more popular in northercrypto kosovo, which is primarily populated by Serbs who refuse to pay power bills because they do not recognize Kosovo’s independence.

The country, which has 1.8 million inhabitants, imports 40% more of its energy. There is significant demand for heat in winter months when people rely on power to heat their homes.

Although the energy crisis measures might seem extreme, they are the outcome of decades of energy issues in Kosovo. These problems have led to blackouts in the country, as well as a lack of control over the economy and severe economic decline. While crypto miners have been able to take advantage of the low-cost energy, crypto mining’s high electricity usage is incompatible with a country that is experiencing widespread power outages and a sector of the country that has only recently began to pay for its electricity.

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