European Securities and Markets Authority Vice-Chair Wants EU to Consider Ban on PoW Crypto Mining

A top European securities regulator says that the EU should consider banning energy-intensive forms of crypto mining.

Speaking in a recent interview with the Financial Times, vice-chair of the European Securities and Markets Authority Erik Thedéen argued Bitcoin mining has become a national issue and warned of the risks posed to the environment and climate change. 

Thedéen asked for European regulators to consider a ban on proof-of-work mining — as used by Bitcoin and several other blockchains (e.g. Litecoin) — to incentivize a shift in the industry towards more energy-efficient alternatives, such as proof-of-stake (PoS). 

Thedéen’s comments fell in line with measures taken by China to curb Bitcoin mining. In May 2021, China imposed a ban on crypto mining, which led to a disbursement of mining groups to more energy-efficient landscapes.

A Q3 report from the Bitcoin Mining Council noted that China’s ban had actually led to increased renewable energy usage for crypto mining, with renewable energy accounting for 58% of Bitcoin’s network in the third quarter of 2021. 

Paris-based Melanion Capital, an alternative investment firm, pushed back on Thedéen’s concerns over PoW, calling a ban on crypto mining “completely misinformed.”

According to a report by Cointelegraph, the investment firm said that Bitcoin’s decentralized nature left it without a lobby group to defend it’s interest. Melanion argued that regulators were taking advantage of the system by potentially rendering mining illegal without allowing the industry to defend itself. 

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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