Kosovo police seize 174 Bitcoin mining rigs from Serbs

Crypto mining in a northern Kosovo municipality dominated by Serbs has been targeted by authorities and police who conducted searches on Friday.

Kosovo police have reportedly confiscated dozens of cryptocurrency mining equipment from residents of a predominantly Serbian district in the north of the nation, according to Turkey’s Anadolu Agency, which cited a member of the Albanian-led government in Pristina.

According to Artane Rizvanolli, Minister of Economy, 174 unregistered hardware used to generate virtual currency were seized.

Nobody pays the electricity bill

Kosovo, which is majority Albanian, has had problems billing the Serbian population of northern Kosovo for electricity consumption for the past 23 years, since it declared independence from Serbia.

While only 2% of the city’s total 1.8 million inhabitants live in the four northern municipalities, they use 6% of the city’s electricity and their consumption is on the rise, from 214 GWh in 2011 to 267 GWh in 2017 and 372 GWh in 2021.

A Kosovo police officer inspects crypto mining rigs during a raid in Leposavic.

Unpaid electricity and water bills in four Serbian municipalities in northern Kosovo reportedly exceed €300 million, or nearly $330 million.

Rizvanolli announced the operation on social media, saying that non-payment of electricity bills encourages illegal crypto-mining activities.

The Minister of Finance said:

“Non-payment of electricity bills encourages such illegal activities. That is why Serbia is preventing the implementation of the energy agreement.”

She added that they have fulfilled all their obligations and that “it is time for the other side to do the same.”

In an effort to reduce unpaid power usage, the government of Kosovo has announced a temporary ban on crypto mining until the end of 2021 and has begun cracking down on smuggling equipment.

Tensions over seizure of crypto mining rigs

According to Adriatik Stavileci, spokeswoman for Kosovo’s customs department, customs seized approximately 700 graphics processing units (GPUs) and 336 high-speed Antminers with an estimated value of just over 167,000 euros between 1 January 2022 and 30221 March 2021.

The action has the potential to heighten tensions in the ethnically divided, partially recognized Balkan state, and authorities in Pristina and Belgrade have already traded barbs over it.

An attempt to increase tension in the secessionist region, according to Belgrade, is behind the crackdown.

The Serbian government’s Coordination Organization for Kosovo and Metohija said the attacks targeted Serbs on a holy day for the Serbian Orthodox Church and described the police operation as a continuation of the harassment of the Serbian people.

The current market capitalization of cryptocurrency stands at $1.23 trillion as per the daily chart on TradingView.com

Crypto Mining is expected to grow globally

Kosovo, which is populated mainly by ethnic Albanians, declared independence from Serbia in 2008.

Serbia still considers its former province to be part of its jurisdiction, and therefore has not recognized the country’s independence.

With a projected CAGR of 12.90% between 2023 and 2032, Precedence Research forecasts that the worldwide cryptocurrency mining market will expand from its current value of $1.92 billion in 2022 to $7 billion in 2032.

– Featured image from Cryptoglobal