On Tuesday 04.01.2022, Kosovo bans crypto mining in an effort to reduce the usage of electricity as the nation suffers from the worst energy crisis in a decade because of the electricity disruption.
Kosovo Bans Crypto Mining Activities
Because of the electricity shortage during the winter season, the Kosovo government has decided to disrupt cryptocurrency mining in the country. As per the reports by the local newspaper, the Minister of Economy of Kosovo, Artane Rizvanolli, has planned to ban digital currency mining following a suggestion from the Technical Committee on Emergency Measures for Energy Supply. So The Republic of Kosovo bans crypto mining as a measure of tackling its energy crisis
The decision was made by the government after the energy supply of Kosovo fell below the needed level, and it started imposing electric power cutbacks during the hours of high usage, as per the report.
Law enforcement authorities are predicted to interfere to block the manufacture of digital currencies and try to find places where such functions take place. Minister of Economy and Energy of Kosovo, Artane Rizvanolli said,
“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.”
In response to the issue, the administration has decided to create a technical committee to judge emergency energy supply strategies, as per Rizvanolli. The previous week, the government of Kosovo decided to bring immediate actions in reaction to the recommendations of the committee, which include restricting crypto mining over the borders of Kosovo.
Winter And Electricity Crisis In Kosovo
According to the news report, the government announced a state of emergency in December for a period of 60 days, enabling it to assign more money for energy imports and carry out power cutbacks.
Low electricity supplies from Russia resurrected fears of a shortage of energy as the colder winter comes near, sending European gas prices towering by over 30% on Tuesday. One crypto miner, who asked for anonymity and owns 40 GPUs (Graphics Processing Units), told a news agency that he spends approximately 170 euros per month on power and makes nearly 2,400 euros every month from mining.
Digital currency mining has become more famous in northern crypto Kosovo, which is mainly inhabited by Serbs who refuse to pay any power bills as they do not recognize the independence of Kosovo. So to combat this shortage Kosovo bans crypto mining on Tuesday. The 1.8 million population-strong nation now imports over 40% of its energy, with prominent demand in the winter when the population mostly uses power for heating.
The Bottom Line
Recently, Kosovo bans crypto mining and the energy emergency measures may seem draconian, but they are the response of years of energy issues in Kosovo, which have demonstrated themselves in blackouts throughout the nation and have been provoked by an intense lack of control and a declining economy. While crypto miners in the nation have been able to take benefit of the low-cost energy, the high electricity usage of Bitcoin mining is inconsistent with a nation that is going through widespread power outages and an industry of the country that has only lately started to pay for its electricity.
- Winamp Supports NFT After Getting Into The Web3 - 08/12/2022
- BlockFi Bankruptcy: Will It Now See A Fall Like FTX? - 29/11/2022
- Famous CryptoPunk NFT Surpasses The Bored Ape Floor Price - 16/11/2022