EU Must Be Ready to Block Crypto Mining

EU member states must be ready to stop crypto mining, the European Commission’s executive, responsible for implementing new legislation, said on Tuesday.

The EU is also developing an energy efficiency label for blockchain as gas cuts in Russia raise various concerns.

It is also critical to end tax breaks and other fiscal measures that benefit crypto miners currently.

In the past five years, energy consumption for crypto has increased by 900%, accounting for about 0.4% of global electricity consumption. Europe accounts for 10% of global evidence-based mining.

Officials have been intrigued by the energy consumption of proof-of-work technology, which uses computing power to mine new bitcoins. EU lawmakers were on the verge of amending crypto laws to impose what some described as a bitcoin ban. Meanwhile, the White House in the United States has called for new industry standards.

France is revising its cryptocurrency regulations to become the world’s leading blockchain hub. It does not simply repeat existing stock market standards. Le Maire is concerned about the energy consumption of cryptocurrencies and the possibility of blockchain technology replacing the French fiat currency, the euro.

The EU recently adopted the Crypto Asset Markets Law. This allows cryptocurrency companies to operate in the EU as long as they comply with investor protection and sustainability standards.

Several companies, including Binance and crypto.com, recently registered with French authorities under a law that could interfere with some of MiCA’s goals. But French lawmakers complain the government isn’t doing enough to encourage Web3 entrepreneurs. The total value of the crypto was around $940M. The transactions were in batches of 122 bitcoins, a common pattern that occurred several times during the 2021 bull run.