Cryptocurrency mining banned in Kosovo, electricity shortage is the problem

SARAJEVO, (Patria) - The Kosovo government has banned cryptocurrency "mining" to reduce electricity consumption at a time when the country is facing the worst energy crisis in the last decade.

The police will stop "mining" "in cooperation with other relevant institutions that will identify locations where cryptocurrencies are produced," announced the Minister of Economy and Energy, Artane Rizvanolli.

Due to cheap electricity in recent years, numerous young people in Kosovo have become cryptocurrency "miners".

Last month, Kosovo introduced electricity reductions twice a day for two hours due to the difficult operation of the coal-fired thermal power plant and high electricity import prices.

In December, Kosovo declared a state of emergency for 60 days, which will allow the government to allocate more money for energy imports, introduce additional reductions, and stricter measures.

One "miner" anonymously told Reuters that he pays 170 euros for electricity per month and earns 2,400 euros from cryptocurrency "mining", Hina reported.

Cryptocurrency "mining" is also growing in the north of Kosovo, which is predominantly inhabited by Serbs who refuse to pay for electricity.

Kosovo imports more than 40 percent of its electricity.

European gas prices rose by more than 30 percent on Tuesday after gas supplies from Russia were reduced, raising concerns about a potential energy crisis in the winter months.