The government of Kosovo yesterday introduced a ban on cryptocurrency mining in an attempt to reduce electricity consumption as the country faces its worst energy crisis in the last ten years, Reuters reported.
"All law enforcement agencies will do their best to stop this type of activity in cooperation with other relevant institutions that will identify locations where there is cryptocurrency production," said Minister of Economy and Energy Artane Rizvanoli.
"The technical committee, which was established at the end of last year, held two meetings to identify problems and come up with solutions when it comes to the negative effects of the global energy crisis. Based on the recommendations, I made a decision banning the production of cryptocurrencies in the entire territory of Kosovo," said Rizvanoli.
Due to the low electricity prices in Kosovo in recent years, many young people have started mining cryptocurrencies.
Faced with aging thermal power plants and high imported electricity prices, the authorities were forced to introduce restrictions last month.
In December, Kosovo declared a 60-day state of emergency that will allow the government to commit more money to energy imports, introduce new restrictions and tougher measures.
A Kosovar who is engaged in mining and has 40 GPUs (graphic processing units), and who wished to remain anonymous, told Reuters that he pays about 170 euros for electricity per month and makes about 2400 euros in profit from mining for the same period.
Cryptocurrency mining is on the rise in the north of Kosovo, which is inhabited by Serbs who do not recognize the state of Kosovo and often refuse to pay for electricity, according to the British agency.
This country of 1,8 million people now imports over 40 percent of the energy it consumes, and demand is high during the winter when people use electricity for heating.
About 90 percent of energy production in Kosovo is from lignite, a soft coal that produces toxic pollution when burned.
According to official data, Kosovo has the world's fifth largest lignite reserves of 12 to 14 billion tons.
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