Regulator Reiterates Call for EU Ban on Proof-of-Work Mining

The EU should prohibit proof-of-work crypto mining, an enforcement astatine the European securities watchdog has insisted. Coins relying connected the energy-intensive method of minting airs a hazard to efforts aimed astatine gathering clime alteration goals specified arsenic those acceptable successful the Paris Agreement, the regulator says.

Bitcoin Mining Now Attacked successful EU for Burning Too Much Renewable Energy

A high-ranking fiscal regulator has reiterated a telephone for an EU-wide prohibition connected cryptocurrency mining based connected the proof-of-work concept. The power-hungry exemplary employed successful the minting of large cryptocurrencies similar bitcoin — arsenic good arsenic ethereum astatine this constituent — has been blamed for utilizing expanding amounts of renewable energy, allegedly slowing down clime modulation successful different sectors.

Speaking to the Financial Times, the Vice-Chair of the European Securities and Markets Authority Erik Thedéen stated that regulators connected the Old Continent should see banning proof-of-work mining and effort to steer the manufacture towards the little energy-intensive proof-of-stake method. This, according to the ESMA official, volition little its immense powerfulness consumption.

Thedéen, who besides serves arsenic director-general of Sweden’s Financial Services Authority, noted that bitcoin mining has go a “national issue” for his ain country. In November, helium and Björn Risinger, caput of the Swedish Environmental Protection Agency, singled retired proof-of-work mining arsenic the main crushed for bitcoin’s precocious vigor usage and issued the archetypal telephone for a prohibition successful the EU.

“The solution is to prohibition impervious of work,” Thedéen has present insisted again, emphasizing that proof-of-stake has a importantly little vigor profile. “We request to person a treatment astir shifting the manufacture to a much businesslike technology,” the regulator elaborated. Thedéen was clear, however, that helium was not advocating a wide crypto prohibition.

Cryptocurrency mining has been criticized for its increasing interaction connected the environment. Last May, China — which astatine the clip had the largest stock of the planetary hashrate — launched a crackdown connected the manufacture pursuing President Xi Jinping’s pledge to execute c neutrality. Miners person been moving to summation the proportionality of renewable vigor successful the premix that powers their hardware. However, Erik Thedéen says:

It would beryllium an irony if the upwind powerfulness generated connected Sweden’s agelong coastline would beryllium devoted to bitcoin mining.

Mining companies person been relocating to countries with developed upwind and star powerfulness generating capacities specified arsenic Sweden and Norway, which mulls backing the Swedish proposal. Thedéen present warns that if authorities neglect to intervene, a important magnitude of renewable vigor would spell towards minting integer currencies alternatively of helping accepted services determination distant from coal-powered vigor sources.

Do you deliberation the EU volition respond to Sweden’s telephone and prohibition proof-of-work crypto mining? Share your expectations successful the comments conception below.

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