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A new European country will ban the exploitation of cryptocurrencies

In this context, it recently became known that the Government of Kosovo has decided to apply restrictions on cryptocurrency mining. According to the information available so far, this measure should lead to a significant reduction in energy consumption in the coming months.

This plan envisages reducing energy in various aspects, but one of the most important is cryptocurrency mining. It is important to note that this measure was not taken in isolation.

Although Kosovo is not the first cryptocurrency 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, it could also affect the entire market.

Is Kosovo against cryptocurrencies?

To say that Kosovo is or is not against cryptocurrencies, at least at this stage, is a bit risky. It seems that the government is trying to protect and use electricity for much more necessary things than cryptocurrency mining.

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

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

To implement this ban, the government of the capital issued a decree. So anyone who mines cryptocurrencies, whether with one or more mining machines, is committing a crime.

In fact, the government claims that this measure is much needed and it is clear that cryptocurrency mining is not among the government’s priorities, so this asset class is increasingly at risk.

This is not the first time that Kosovo has banned mining.

It is important to emphasize that this is not the first time that Kosovo has decided to take such a step. It happened for the first time at the beginning of this year, when the winter in the country was quite harsh. During these months, the heating is turned on in all houses and places in Kosovo, which causes the electrical system to reach its maximum.

Now, if you add to that that every house has heating on, a large amount of energy consumed by mining, the electrical system is easily overloaded, which can cause a lot of problems. Also, at that time, the region of Southeast Europe experienced a series of power shortages. That’s why Kosovo decided to step up, and it seems that it’s getting ready to do it again.

Furthermore, Kosovo imports energy that powers the entire country, which means it is quite expensive. And what happens is that cryptocurrency mining does not bring enough profit to the country, unlike paying the electricity bill during the colder months.

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

Creating such a ban could create new problems for Kosovo. This has already happened in other countries, and some mining centers decide to illegally connect to the power system, which leads to more consequences for the power system and includes power theft, so things could get 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.

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