Home News EU securities regulator calls for proof-of-work crypto mining ban

EU securities regulator calls for proof-of-work crypto mining ban

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The European Securities and Markets Authority’s vice-chair, Erik Thedéen, has expressed worry about the expanding usage of renewable energy for Bitcoin mining.

Thedéen recently told the Financial Times that Bitcoin (BTC) mining has become a “national concern”. And that cryptocurrency could jeopardise climate change aims.

He urged European regulators to take a stand against proof-of-work mining. Which is prevalent in Bitcoin and a few other offshoot cryptocurrencies. He also argued that proof-of-stake was a better, more energy-efficient option:

“We need to talk about moving the industry to a more efficient technology.”

In November 2021, Melanion Capital, a Paris-based alternative investment group, responded to the rising push for a ban on PoW mining, calling it “totally incorrect”.

Energy consumption of the Bitcoin network

Because of Bitcoin’s decentralised character, there is no lobby or group to defend its interests, according to the investment firm. Which “should not be exploited as a chance to introduce laws deeming an industry illegal due to its lack of defensive powers”.

The energy consumption of the Bitcoin network was one of the most contentious issues in 2021. With Elon Musk, Jack Dorsey, and Michael Saylor all weighing in on the subject. Tesla even dropped Bitcoin as a payment method due to the Bitcoin network’s high energy consumption. Unlike Thedéen, however, the majority of opponents had no objection to the use of clean energy up until recently. Tesla would reconsider introducing a Bitcoin payment option if 50% of the Bitcoin network’s energy generated from renewable sources, according to Musk.

China’s Bitcoin mining ban, enacted in May of last year, was a windfall to the ecosystem. As it not only dismantled the highly centralised Bitcoin mining business, but also aided in the transition to renewable energy. The Bitcoin network used 58% renewable energy in the third quarter of 2021. According to the Bitcoin Mining Council’s Q3 report.

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