Kosovo government warned Bitcoin miners
A few days ago, specifically on January 5, alleging an electricity crisis, Kosovo banned mining from reported CriptoNoticias.
The intention is curb electricity consumption, at a time when they face the worst crisis in recent years, according to Rizvanolli.
Kosovo is a country where energy prices are low, which is why many people have decided to get involved in mining cryptocurrencies.
The Kosovo Government’s war against Bitcoin miners became similar to that of the Chinese authorities, one of the leading cryptocurrency ban cases that made the most noise in 2021.
In September of last year, the Central Bank of that nation indicated that all activities related to cryptocurrencies are prohibited and vetoed according to the law. Besides China, other countries that have completely restricted bitcoin are Algeria, Morocco, Tunisia, Egypt, Iraq, Nepal, Qatar, and Oman.
When energy problems occur in countries, bitcoin becomes the “scapegoat” in many countries. A recent example emerged in Latin America, specifically Argentina.
Soaring energy prices and power blackouts in Kosovo, one of the poorest countries in Europe, led to a government ban on Bitcoin mining. Now, some miners are selling their equipment or trying to move abroad, industry participants say.
The landlocked Balkan state is only the latest to crackdown on crypto mining after being buffeted by high energy prices. Kazakhstan, which had become a popular base for miners who fled China, took similar measures late last year.
Kosovo confiscated 429 devices used to mine cryptocurrencies during first few days of January, the newspaper Gazetta Express reported. The move follows energy blackouts because of high import prices and an unexpected shut-down of a
power plant a month earlier.
Generating the world’s biggest cryptocurrency requires special computers that work to solve complex mathematical problems, and the biggest operating expense for miners is electricity.
Ardian Alaj, the co-owner of a crypto exchange in Kosovo’s capital Pristina, told Bloomberg he’d heard of multiple examples of miners selling or trying to sell equipment in the aftermath of the ban. There are “minimal cases” of miners going to neighboring countries, he said by email.
“Mining was done in Kosovo, because it was possible to do it illegally,” said Alaj. It was also cheap: the northern region of Mitrovica, a popular hub for crypto mining, is one of the four Serb-majority parts of the country that exempts citizens from electric bills.