EU Rejected The Proposal To Ban Cryptocurrency Mining

The EU rejected the proposal to ban cryptocurrency mining. The European Parliament decided to reject the proposal.

The European Parliament's Committee on Economic and Monetary Affairs voted against a bill to limit the use of cryptocurrencies based on an energy-intensive process called Proof-of-Work (PoW). This method is called mining in the crypto industry, and the term is not used for other methods of generating cryptocurrencies. Cryptocurrencies such as Bitcoin and Ethereum are mined using the PoW method. This algorithm involves the use of huge computing power and therefore high energy costs, which harms the environment and ecology. This mining method therefore jeopardizes the EU's climate goals of achieving carbon neutrality. Many countries, such as China, have sacrificed cryptocurrency mining to save energy. Studies show that Bitcoin mining produces the same amount of carbon dioxide each year as a country the size of Greece. It has been known since January 2022 that the European Union wanted to ban mining based on PoW. Eric Theden, Vice President of the European Securities and Markets Authority (ESMA), stated that the regulator is looking to push the industry towards a less energy-intensive method of mining cryptocurrencies (Proof-of-Stake). This algorithm differs in that it does not require large computing power and energy.