The Kosovo government has decided to halt crypto mining activities in the country as part of measures to deal with power shortages this winter. This decision was proposed by a special parliamentary committee tasked with bridging the gap between demand and supply of electricity.
Kosovo authorities ban crypto mining to save energy
The executive branch of Pristina has decided to stop the energy-intensive minting of digital coins in Kosovo, a partially recognized republic in South-Eastern Europe. The country faces power shortages during the cold winter months, local media reported.
The cessation of crypto mining operations was announced on Tuesday by Artane Rizvanolli, Kosovo’s Minister of the Economy. According to his statement quoted by Gazeta Express, the decision was taken on the recommendation of the Technical Committee on “Emergency Measures for Energy Supply” set up by the country’s legislature.
The restrictions were agreed to in Kosovo’s parliament last week, DTT Net reported. Kosovo has experienced power cuts due to increased demand for electricity during the cold winter months and authorities are trying to find solutions that will ease the energy crisis.
Minister Rizvanolli added that Kosovo law enforcement institutions will join efforts to locate crypto mining facilities and stop digital currency mining. “These actions aim to remedy the potential unexpected or long-term lack of electricity production capacities, transmission capacities or energy distribution in order to overcome the energy crisis without further weighing down the citizens of the Republic of Kosovo”, she explained.
In order to deal with the electricity deficit, the government declared a 60-day state of emergency in December, which will allow it to allocate funds for energy imports and impose power cuts. Kosovo’s energy needs are mainly met by its coal-fired power plants.
In winter, however, demand exceeds supply and Kosovo Energy Distribution Systems is forced to offset shortages with imports. At the same time, Gazeta Express notes, the global energy crisis has led to a huge increase in electricity prices on the international market.
Kosovo has seen the popularity of mining grow with the prices of crypto, especially in its predominantly Serbian northern part where consumers in several municipalities have paid nothing for electricity for over 20 years. Earlier this year, Balkan Insight reported that the Albanian-controlled government in Pristina had ordered the country’s public service to cover these bills for another six months while authorities tried to find a permanent solution.
Do you think Kosovo will allow crypto miners to resume operations once it gets over its power shortage issues? Tell us in the comments section below.
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