Kosovo in turn bans cryptocurrency miners, joining the list of countries that have already taken the same measure. After the restrictions put in place by China, this small European state welcomed many miners who came to take advantage of the low prices of its electricity. As a result, consumption has skyrocketed, causing repeated shortages.
June 2021: China permanently bans cryptocurrency mining. The country, among the leaders in the field, then generates a historic exodus of minors, went to take refuge in neighboring countries where electricity is cheaper. Several small Asian countries then find themselves hosting more or less voluntarily these people who are exponentially increase consumptionn local. As a reminder, Bitcoin alone represents 0.5% of global electricity consumption.
However, these countries do not all have the capacity to supply these mining farms which are increasingly greedy in energy, while continuing to provide the premises for their more reasonable use. Shortages then start to multiply on the continent, triggering the reaction of local governments. India, among others, ends up banning cryptocurrency transactions.
Kosovo gets rid of cryptocurrency miners
Asia is not the only one to welcome minors. Some European countries have the same advantages as their neighbors and inexorably attract this population. This is the case with Kosovo. The Balkan state has known for several months an unprecedented energy crisis. Last month, the government implemented a 60-day state of emergency to help power producers and reduce overall consumption.
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This Tuesday, January 4, the authorities announced the definitive ban on cryptocurrency mining. “All law enforcement agencies will stop production of this activity in cooperation with other relevant institutions that will identify places where there is cryptocurrency production”, said Artane Rizvanolli, Minister of the Economy and Energy.
The arrival of miners in Europe worries other powers, such as Sweden, which demands that the EU end cryptocurrency mining. Kosovo, meanwhile, imports 40% of its electricity. Reuters reports that by paying an invoice of € 170, a minor can receive € 2,400 per month.