Kosovo has outlawed cryptocurrency mining in order to preserve energy.

Highlights:

  1. In recent years, electricity prices in Kosovo have been low.
  2. Last month, officials were obliged to implement power outages.
  3. Northern Kosovo has seen an increase in coin mining.

Several youngsters in Kosovo have become interested in crypto mining as a result of low power price volatility.

As part of preparations to cope with power outages this winter, the administration of Kosovo has opted to place a stop to crypto mining in the nation. A specialized parliamentary inquiry charged with filling the gap among power buyers and sellers advocated the change.

Kosovo’s government has banned cryptocurrency mining in order to conserve energy.
In Kosovo, a partially recognized country in Southeast Europe, the executive authorities in Pristina have sought to halt the power minting of digital money. According to local media, the country is experiencing electrical shortages throughout the frigid colder months.

Kosovo’s economic minister, Artane Rizvanolli, announced the stopping of cryptocurrency mining operations on Tuesday. The decision was made on the proposal of the Technical Committee on “Emergency Measures for Energy Supply” established up by the nation’s legislature, according to her statement reported by Gazeta Express.

According to DTT Net, the limits were approved within Kosovo’s legislature the other week. During the harsh winter months, Kosovo has been facing power outages due to growing energy demands, and officials are working to find alternatives to the energy situation.

Minister Rizvanolli also stated that Kosovo’s law enforcement agencies will assist in the search for crypto mining areas and the halting of digital currency mining. “These steps are targeted at resolving any unforeseen or long-term shortages of power generation, transmission, or distribution capacity in order to solve the energy shortage without any further saddling the Republic of Kosovo’s inhabitants,” she explained.

In December, the government announced a 60-day national emergency to address the power shortage, allowing it to allocate funding for imported energy and impose power cutbacks. Kosovo’s coal-fired generating facilities provide the majority of the country’s electricity.

During the winter, however, demand outstrips supply, forcing Kosovo Electricity Distribution Systems to purchase to make up for the shortfall. At the same time, the global energy crisis, according to Gazeta Express, has led to a massive spike in power rates on the worldwide market.

Mining has grown in popularity as cryptocurrency prices have risen, particularly in Kosovo’s largely Serb northern region, where residents in numerous towns have not paid for energy including over 20 years.

Balkan Insight reported earlier this year that Pristina’s Albanian-controlled administration has ordered the country’s state utility to cover these expenses for yet another six months whilst officials strive to figure out a solution.

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