EU countries should be ready to ban cryptomining – European Commission
Members of the European Union should be ready to completely block cryptocurrency mining. This is stated in the statement of the European Commission. The EU is also developing an energy efficiency label for blockchains.
The reason for this decision is the preparation of the European region for winter with a number of uncertain circumstances. The need for restrictions arose in connection with interruptions in the supply of gas from Russia. Some participants are afraid of high energy prices, electricity shortages and power outages.
“In the event of the need for load shedding in the power supply systems, [EU] member states must also be prepared to stop mining crypto assets,” the document says.
Load shedding refers to the intentional disconnection of electricity supply to certain consumers by energy companies in order to avoid the collapse of the entire network.
Additionally, the European Commission intends to “put an end to tax incentives and other fiscal measures in favor of crypto-miners currently operating in some member states.” These measures are considered as a tool of influence in the long term.
“In the coming months and years, the Commission intends to take various steps to develop digital energy services while ensuring an energy-efficient ICT (information and communication technology) sector, including … energy efficiency labeling for blockchains,” the Commission also said in a statement.
The European Commission claims that cryptomining energy consumption has increased by 900% in 5 years, reaching about 0.4% of global electricity consumption. At the same time, Europe accounts for 10% of global mining based on the proof-of-work concept. By 2025, the Commission plans to issue another report on this topic, which may recommend further measures to reduce the energy consumption of cryptocurrencies.
