Kosovo bans crypto-mining amid energy crisis – EURACTIV.com

The government of  Kosovo has decided to ban cryptocurrency mining as the country faces some of the worst power shortages in its history this winter.

There has been widespread controversy and protests over scheduled power cuts taking place across the country in a bid to conserve energy amid the global energy crisis.

Economy Minister Atrane Rizvanolli decided on Tuesday to prohibit cryptocurrency mining in Kosovo. She said in a statement that the decision was taken with the recommendation of the Technical Committee on Emergency Measures for Energy Supply.

“These actions are aimed at addressing potential unexpected or long term lack of electricity production capacities, capacities of transmission or distribution of energy in order to overcome the energy crisis without further burdening the citizens of the Republic of Kosovo,” Rizvanolli said.

The committee was set up to assess various energy-saving measures. Rizvanolli said police and authorities will intervene to ensure the ban is adhered to. Additionally, they will work on identifying locations believed to be mining cryptocurrencies like bitcoin.

A state of emergency was declared in December 2021 that will remain in force for the next 60 days. This allows the government to put aside more money for energy imports and schedule powercuts.

Kosovo gets the majority of its energy from coal-fired plants and also exports fossil fuel energy to neighbouring Albania. In the winter, demand for energy increases, leading to cuts across the country. The scheduled cuts are two hours in length, take place throughout the day, and impact both households and businesses.

Cryptocurrency mining involves significant amounts of energy that are used to power computers that solve cryptographic equations to be rewarded with currency.

(Alice Taylor | Exit.al)