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Kosovo applies anti-crypto-mining law to avoid electricity crisis

Kosovo

TL;DR Breakdown

• The European country suffers frequently from electrical failures caused by crypto mining.
• Kosovo and Iran appear to be the least desirable destinations for crypto mining farms.

Kosovo recently applied a law against crypto mining after going through blackouts that affected the capital city. Regulators are reportedly looking to curb the operations of crypto mining farms to avoid excessive energy consumption in the winter season. In this way, the country could prevent falling into an electricity crisis due to a problem that could be stopped.

The announcements indicate that the country in Europe, like the rest of the continent, has been going through an electricity crisis caused by the high cost of the service. Joining this fight against crypto mining is Iran, which in the first months of 2021 was the refuge for many companies fleeing regulations in China.

Kosovo moves to stop crypto-mining

Kosovo

After realizing the electricity problem in Kosovo, a technical agency evaluated the anti-crisis rules applied. Among the many recommendations that the committee applied is to stop crypto-mining at the national level.

According to a committee representative, this decision aims to solve the electricity problems in the country. In this way, a major energy catastrophe can be avoided in the short term. However, some people suggest that the actions are motivated by crypto regulation.

Kosovo has become the focal point for installing crypto mining farms because it offers affordable energy compared to other countries on the continent. However, this access to cheap energy has led to failures in electrical installations because no basic patrimony supports them.

Crypto mining moves to Iran

After the popular government of China prevented the crypto-mining farm’s operation in the first quarter of 2021, the main companies dedicated to it had to migrate to other countries such as Iran. But some European farms went to less demanded destinations like Kosovo.

But these operations in Iran did not last more than a year, considering that the electricity agency asked the companies to stop their operations. This order is motivated by the high energy consumption that the farms have had during the last months of the year 2021.

Kosovo and Iran will no longer be the energy havens that crypto companies saw in previous months. Although, according to the energy organizations in each country, these measures are temporary.

Both regulations towards crypto mining are similar because they were imposed in the summer to avoid an electrical catastrophe in the cold season. But regulations come when crypto is at the highest point of popularity, where at least 6 out of 10 people in the world know about them. While all these restrictions are present in the Bitcoin farms, the crypto maintains a price of $46,689.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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