The government of the Republic of Kosovo has sparked alarm among the Balkan country’s crypto miners by declaring a temporary ban on all crypto mining activity.
According to The Guardian, cryptocurrency miners are selling their equipment at bargain basement rates in order to recuperate part of their investment after the country’s prohibition. The government ordered an immediate ban on all crypto mining operations at the end of last year as part of emergency efforts to alleviate a rising energy crisis.
According to the article, the country’s Facebook and Telegram crypto groups were flooded with messages from miners looking to sell their rigs at discounted rates.
Kosovo has been an appealing destination for European miners owing to the country’s significant reserves of lignite, a low-grade coal, and government-subsidized fuel.
While the prohibition is considered to be temporary, it has forced crypto miners in the nation to relocate or panic sell their equipment.
Dr. Antane Rizvanolli, Kosovo’s economics minister, described the latest restriction as a “no-brainer” in view of the country’s serious energy problems.
As she put it, We have earmarked €20 million for energy subsidies, which is likely insufficient, and this is taxpayers’ money that will be used to subsidise power use. On the other side, there is crypto mining, which is a very energy-intensive and unregulated enterprise.
CryptoKapo, a cryptocurrency investor and administrator of many of the country’s online crypto forums, chastised the government’s move. The anonymous user said that many miners had made considerable financial investments in their mining equipment, including taking out loans, and were now being unjustly disadvantaged.
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