Crypto

Kosovo – Higher Energy Prices and Ban on Mining

The specter of an energy crisis that has been haunting Europe lately is prompting governments to take decisive action. Indeed, rarely has the cost of resources increased so much. The prime suspects, apart from the war in Ukraine, are the European Union with its Green Pact and its goal of achieving carbon neutrality by 2050. However, at the moment, the States are still too dependent on fossil fuels. Bills are rising as a result, and some states are stressing the European Union’s responsibility for these tariff increases. Kosovo has been particularly affected by this crisis. Which inevitably played a role in the recent ban on cryptocurrency mining.

Six months ago, people demonstrated in front of the government building for precisely these reasons. Faced with rising import costs, Kosovo finally decided to declare a 60-day energy emergency in early August. Unfortunately, the solutions implemented by the government include a ban on the mining of cryptocurrencies such as bitcoin (BTC) on the territory.

The government passed a ban on mining

In this context, the government of Kosovo has a plan to deal with rising energy import prices. Considering the question raised, it was easy to guess that cryptocurrency mining would become a policy goal. And it is now voted by decree!

This ban, for an initial period of two months, may be extended up to six months. Provided that you get the most votes. This is necessary to ensure sufficient power supply to homes and businesses over the next few months.

Mining ban – Government justifies itself

For politicians, a mining ban was a real necessity. It is true that the energy consumption used to mine cryptocurrencies such as Bitcoin (BTC) is often highlighted. Some countries, such as Kazakhstan or Sweden, are no longer shy about imposing restrictions on this matter.

According to the Kosovo authorities, the package of measures will meet the needs of households for “heating”, support for the national grid operator to ensure the security of electricity distribution, as well as efforts to reduce consumption by all institutions. »

The government insists on the urgency of the measures taken. At the same time, he recalls that he is doing this to guarantee and protect the country’s public interests in the context of the global energy crisis. However, other solutions are also possible.

This is not the first time that Kosovo has decided to ban it to make up for a lack of energy. Indeed, the same decree was adopted in December last year.

Kosovo – a mining hunt?

While the current context mostly justifies the impossibility of mining cryptocurrencies in Kosovo, the executive branch seems to be indulging in a real hunt for mining in its territory. After all, in addition to the ban, he conducts searches. And just confiscated mining equipment a priori in an illegal situation.

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