Kosovo Bans Crypto Mining to Fight Energy Crisis: What Happened and What’s Next

On January 4, 2022, Kosovo shut down its entire cryptocurrency mining industry overnight. No warning. No grace period. Just police raids, seizures of mining rigs, and a total ban on using the national power grid for crypto operations. The reason? The country was running out of electricity.

Kosovo, a small Balkan nation with just 1.8 million people, was already struggling to keep the lights on. One of its two coal-fired power plants had shut down. Imports were expensive and unreliable. Homes were going cold in winter. And then there were the miners.

In northern Kosovo, especially in Serb-majority areas, crypto mining had exploded. For years, miners had been running hundreds of high-powered computers 24/7, using electricity that was either free or nearly free. Some miners were pulling in up to 2,000 euros a month - five times the average local income. They weren’t stealing power in the traditional sense. They were just using a system that never accounted for their massive, hidden demand.

But when the grid started failing, the government had to act. The Technical Committee for Emergency Measures in Energy Supply recommended an immediate ban. The acting Economy Minister signed it. Within days, authorities confiscated over 500 mining machines in a single operation. Each rig cost between 20,000 and 30,000 euros. Entire businesses vanished overnight.

Why Crypto Mining Was the Target

Crypto mining isn’t like streaming videos or charging phones. It’s a power-hungry process. Miners use specialized hardware to solve complex math problems that verify transactions on blockchains like Bitcoin. These machines run nonstop, generating heat and eating electricity at an alarming rate.

A single high-end mining rig can use as much power as a small household. In Kosovo, hundreds - maybe thousands - of these rigs were plugged into the grid. No one knew exactly how many. No one had registered them. No one paid for the electricity they used.

According to University of Cambridge data, globally, only 39% of Bitcoin mining runs on renewable energy. The rest relies on coal, oil, and gas. In Kosovo, where coal already made up the majority of power generation, crypto mining was making an already dirty energy system even worse.

The government didn’t ban Bitcoin. It didn’t ban digital currencies. It banned the uncontrolled use of public electricity to mine them. That distinction mattered.

The Ban Wasn’t Permanent - But the Rules Got Tighter

By 2023, it became clear that a total ban wasn’t sustainable. Miners had sunk millions into equipment. Some had moved operations underground. Others were smuggling rigs across borders. The government realized it couldn’t just crush the industry - it needed to control it.

Today, crypto mining in Kosovo is allowed - but only if you don’t use the national grid. If you want to mine, you need your own power source: solar panels, wind turbines, or private generators running on diesel or gas. And you have to prove it.

The new rule is simple: No public electricity. No mining. The government doesn’t care if you mine Bitcoin, Ethereum, or Dogecoin. But if your rig is plugged into a state-owned outlet, it’s illegal. And they’re still catching violators.

Former parliamentary working group chair Mimoza Kusari-Lila said the goal was never to kill crypto. It was to stop energy theft and bring transparency. The government started pushing for a formal crypto law - one that would require miners to register their equipment, report energy use, and pay taxes on profits.

Why the Law Still Isn’t Finished

As of 2025, the draft crypto law is 90% complete. But it’s been stuck for over a year.

The European Commission stepped in. They sent two advisers to review the draft. Their concern? Money laundering. Kosovo has a history of informal economies and weak financial oversight. The EU didn’t want a new crypto law that could become a backdoor for criminal activity.

So the draft got revised. Now, miners must verify their identities. Transactions must be traceable. Mining companies must report income. It’s not about stopping crypto. It’s about making sure it doesn’t become a haven for illegal cash.

Some local miners say the rules are too strict. Others say they’re long overdue. But everyone agrees: the old days of free, unregulated mining are gone.

What This Means for Other Countries

Kosovo isn’t alone. China banned crypto mining in 2021, shutting down nearly 75% of the world’s Bitcoin mining capacity. Kazakhstan cracked down in 2022 after a winter energy crunch. Iran, Russia, and Egypt have all imposed restrictions.

But Kosovo’s approach is different. Instead of a total ban, it created a conditional one. You can mine - if you pay for your own power. That’s a model other energy-strapped countries are watching closely.

Think about it: if a country can’t afford to power its hospitals, should it let private miners use its grid? Kosovo said no. And it didn’t just shut them down - it gave them a legal way to keep going, if they were willing to adapt.

That’s not just policy. It’s pragmatism.

What Happened to the Miners?

Some gave up. Many sold their rigs for scrap or shipped them to countries with cheaper power - like Georgia or Kazakhstan.

Others went underground. There are rumors of miners using hidden diesel generators in warehouses, or tapping into unofficial power lines. But those operations are risky. Fines are steep. And the government has been increasing inspections.

A few smart operators switched to solar. In the mountains near Prizren, a handful of mining farms now run entirely on rooftop panels. They’re small, but they’re legal. And they’re growing.

One miner, who asked not to be named, said: “I lost everything in January 2022. But last year, I built a 10-kilowatt solar array. I run six rigs. I pay for my own power. I pay taxes. I’m legal. It’s harder. But it’s sustainable.”

Is Crypto Mining Ever Fair in Poor Countries?

This isn’t just about Kosovo. It’s about energy justice.

Rich countries complain about crypto’s carbon footprint. But in places like Kosovo, the real issue isn’t emissions - it’s survival. When families can’t heat their homes, and hospitals risk blackouts, using public electricity to mine digital coins looks like theft, not innovation.

That’s why Kosovo’s ban worked - not because it was harsh, but because it was fair. It didn’t punish innovation. It punished exploitation.

Now, the country is trying to turn a crisis into a blueprint: Let crypto grow - but only if it doesn’t steal from the people.

What’s Next for Kosovo?

The next big step is the final passage of the crypto law. Once it’s signed, mining will be fully regulated: registered, taxed, and monitored. The government plans to use tax revenue to upgrade the power grid - and maybe even fund renewable projects.

There’s also talk of creating a national crypto incubator - not for mining, but for blockchain startups that build real tools: land registries, supply chain tracking, digital IDs. That’s where the future is.

Miners? They’re being pushed toward clean energy. And that’s not a bad thing. The world is moving away from energy-hungry blockchains anyway. Ethereum switched to a greener system in 2022. Bitcoin’s energy use is still high, but alternatives are rising.

Kosovo didn’t ban crypto. It banned the abuse of a broken system. And in doing so, it forced the industry to grow up.