Amid Electricity Shortages, Kosovo Government Places Ban On Crypto Mining
January 04 2022 - 2:14PM
NEWSBTC
Kosovo has banned crypto mining on Tuesday in an effort to reduce
electricity use as the country grapples with its worst energy
crisis in a decade as a result of electricity disruptions. Kosovo
Bans Crypto Mining Operations Due to electricity shortages during
the winter season, the government of Kosovo has decided to stop
crypto mining in the country. 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. Law enforcement authorities are expected to intervene to
block the manufacture of crypto currencies, and try to locate
places where such operations take place. Economy and Energy
Minister Artane Rizvanolli said in a statement: “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 reaction to
the problem, the administration has decided to form a technical
committee to evaluate emergency energy supply strategies, according
to Rizvanolli. Last week, the government decided to take immediate
actions in response to the committee’s recommendations, including
prohibiting crypto mining over Kosovo’s borders. BTC/USD still
below $50k. Source: TradingView Related article | Could The New
“China Model” Be The Reason The Country Banned Bitcoin Mining?
Winter Is Coming According to Gazeta Express, the government
declared a state of emergency in December for 60 days, allowing it
to allocate more money for energy imports and implement power
cutbacks. Low supplies from Russia revived fears of an energy
shortage as the colder winter approaches, sending European gas
prices soaring by more than 30% on Tuesday. One miner, who
requested anonymity and owns 40 GPUs (Graphics Processing Units),
told Reuters that he spends roughly 170 euros per month on power
and makes around 2,400 euros per month 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 1.8 million
population-strong country now imports more than 40% of its energy,
with significant demand in the winter when inhabitants mostly use
power for heating. The energy emergency measures may look
draconian, but they are the result of years of energy problems in
Kosovo, which have manifested themselves in blackouts across the
country and have been aggravated by a severe lack of control and a
slumping economy. 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. Related article | Why
Did China Ban Bitcoin Mining? Here Are The Seven Leading Theories
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