New country to ban crypto-currency mining

In this context, it has recently become public that the government of Kosovo has decided to implement restrictions on the mining of crypto-currencies. According to the information available so far, this measure is expected to significantly reduce energy consumption in the coming months.

There are various aspects of this plan to reduce energy, but one of the most important is the mining of crypto-currencies. It is important to note that this was not done in isolation.

Although Kosovo is not the leading crypto-currency mining country in the world, we cannot deny that this situation could be somewhat problematic, especially for local investors and miners, but if the situation becomes more serious, the global market could also be affected.

Is Kosovo against crypto-currencies?

To say that Kosovo is or is not against crypto-currencies, at least at this stage, is a bit risky. It seems that the government is looking to protect and use electrical power for things far more necessary than mining crypto-currencies.

As commented by regulator officials, this is to ensure that citizens’ homes and important businesses are supplied with electricity without problems in the coming months.

What is certain is that if crypto-currency mining is not banned, it could affect the power supply and many people would experience power outages, as the country’s electrical system cannot support such a powerful mining force and at the same time the standard power supply.

To enforce this ban, a decree was issued by the government of the capital. Thus, anyone who mines crypto-currencies, whether with one or more mining machines, commits a criminal offense.

In fact, the government claims that this measure is more than necessary and it is clear that the mining of crypto-currencies is not among the government’s priorities, so this asset class is increasingly threatened.

This is not the first time Kosovo has banned mining.

It is important to note that this is not the first time that Kosovo decides to take such a step. The first time it happened was earlier this year, when the winter in the country was quite severe. During these months, the heating is turned on in all homes and places in Kosovo, which makes the electrical system reaches its maximum.

Now, if you add to the fact that every house has the heating on, the large amount of energy consumed by the mines, the electrical system is easily overloaded, which can cause many problems. In addition, at that time, the region of Southeast Europe was experiencing a series of energy shortages. That’s why Kosovo decided to take the plunge, and it looks like it’s getting ready to do so again.

Also, Kosovo imports the energy that powers the entire country, which means it’s pretty expensive. And what’s happening is that crypto-currency mining isn’t bringing in enough profit for the country, as opposed to paying the electricity bills during the colder months.

As for the duration of the ban, it is initially 180 days. This is the period agreed upon by a majority vote, but it does not mean that this is the only period during which the ban will be in effect.

The creation of such a ban could create new problems for Kosovo. This has already happened in other countries, and some mining centers decide to connect illegally to the electrical system, which leads to more consequences for the electrical system and involves the theft of energy, so things could become a little more serious, but for now the ban is only for 180 days, and it remains to be seen what the next steps will be.