The Kosovar government reportedly enforced a ban on cryptocurrency mining in an attempt to curb electricity consumption during the coldest months of the year. The country, like many others in Europe, grapples with an energy crisis caused by the sharp price increase of electricity.
Another Country to Halt Crypto Mining
The small Balkan state – Kosovo – has been facing power shortages during the last couple of months as the weather in Eastern Europe started cooling off.
Attempting to solve the issues, the local government has recently established a Technical Committee to assess emergency measures for energy supply. Based on the agency’s recommendation, Artane Rizvanolli – Kosovo’s Economy and Energy Minister – halted all cryptocurrency endeavors on the country’s territory, the news outlet Gazeta Express reported.
“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,” the lawmaker said.
A few weeks ago, the authorities declared a state of emergency for the next two months allowing the country to allocate more funds for energy imports and impose tough restrictions on power usage.
Kosovo produces most of its electricity from coal-fired power plants. Despite the recent price increase across the whole continent, the nation still provides one of the most affordable energy costs in Europe, making it an attractive destination for cryptocurrency miners.
Iran with The Same Move
At the end of last year, the Iranian Ministry of Energy also ordered local authorized cryptocurrency miners to suspend their activities temporarily. Similar to Kosovo, the authorities explained that the move is necessary since electricity shortages are not absent during the winter months.
“The Energy Ministry has been implementing measures since last month to reduce the use of liquid fuels in power plants, including cutting licensed crypto farms’ power supply, turning off lampposts in less risky areas, and stringent supervision of consumption,” Mostafa Rajabi Mashhadi – Tavanir’s Chairman stated.
Interestingly, the Iranian government enforced the same ban during the hottest months of 2021, too. Last May, it blamed bitcoin mining for electricity blackouts, which supposedly disrupted the nation’s energy network. Following that, the authorities halted all cryptocurrency mining endeavors for a period of four months.
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