Regulators Renew Call for EU to Ban Proof-of-Work Mining – Bitcoin News

An executive at the European securities regulator insists that the EU should ban proof-of-work cryptocurrency mining. The regulator said coins that rely on energy-intensive minting methods pose a risk to efforts aimed at meeting climate change goals such as the Paris Agreement.

Bitcoin Mining Now Under Attack in EU for Burning Too Much Renewable Energy

A top financial watchdog has renewed calls for an EU-wide ban based on proof of work concept. The power-hungry model used in the minting of major cryptocurrencies such as bitcoin and ethereum has been blamed for the increasing use of renewable energy, purportedly slowing climate change in other industries.

Erik Thedéen, vice-president of the European Securities and Markets Authority, told the Financial Times that regulators in the Old Continent should consider banning proof-of-work mining and try to steer the industry towards a less energy-intensive sector Proof of Stake method.This, according to ESMA Officially, it will reduce its huge power consumption.

Thedéen, who also serves as the head of Sweden’s Financial Services Authority, noted that Bitcoin mining has become a “national problem” in his own country. In November, he and the head of the Swedish Environmental Protection Agency, Björn Risinger, pointed out that proof-of-work mining is the main reason for Bitcoin’s high energy consumption, release Initially called for a ban in the EU.

“The solution is to ban proof-of-work,” Thedéen now insists again, emphasizing that proof-of-stake has a much lower energy distribution. “We need to discuss shifting the industry to more efficient technologies,” the regulator elaborated. However, Thedéen is clear that he is not advocating a broad crypto ban.

Cryptocurrency mining has been criticized for its growing impact on the environment.In May last year, China, which had the largest share of global computing power at the time, launched the repression The industry has come under the spotlight after President Xi Jinping pledged to be carbon neutral. Miners have been working hard to increase the share of renewable energy in the mix that powers their hardware. However, Erik Thedéen said:

It would be an irony if the wind power generated on Sweden’s long coastline was used for bitcoin mining.

Mining companies have been relocating to countries with developed wind and solar power capacity, such as Sweden and Norway, which consider Support the Swedish proposal. Thedéen now warns that if the authorities don’t intervene, a lot of renewable energy will be used to mint digital currency, rather than helping traditional services move away from coal energy.

Do you think the EU will heed Sweden’s call and ban proof-of-work crypto mining? Share your expectations in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.