Kosovo’s government has clamped down on crypto and announced an immediate but temporary ban on all crypto mining.
It comes after electricity blackouts occurred this winter, affecting civilians in the Balkan state in Southeast Europe.
The energy crisis was so severe that the final days of 2021 were spent in darkness.
Due to the blackout and shutdown of one of its two powerplants, Kosovo had to import 40% of its energy on international markets, with the government having no choice but to provide an emergency subsidy to cover costs.
Reddit users have spoken out, one user wrote: “The largest-scale crypto mining is thought to be taking place in the north of the country, where the Serb-majority population refuse to recognise Kosovo as an independent state and have consequently not paid for electricity for more than two decades.”
With another person adding: “Seems like the problem is the use of coal and subsidizing free electricity.”
As reported in The Guardian, it is said that Kosovo’s miners have been on a mission to sell mining equipment in a bid to save money and cut any losses.
Kosovans are circulating on platforms such as Facebook and Telegram, offering discounted prices.
When cryptocurrencies are mined by computers, the energy levels used to power the process is incredibly high, with some of the most powerful machines using 1300w of energy to produce Bitcoin.
Earlier this year, authorities in Kosovo seized hundreds of crypto mining machines, seen to be illegal, and arrested the individuals known to be running such machines and operations.
Kosovo is not the only country taking action against crypto and currencies. Albeit not a permanent ban, the decision was made for the wellbeing of the country.
However, China has a different stance on the ideals of crypto, with others following suit and banning crypto altogether. Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia and Bangladesh have all embargoed the currencies.