Sweden calls on European regulators to ban cryptocurrency mining on environmental issues
Therefore, they recommend that proof-of-work cryptocurrency mining be banned throughout Europe, and that Sweden should block the establishment of new cryptocurrency mining operations, and that companies that trade and invest in cryptocurrency assets are prohibited from describing themselves as environmentally sustainable.
They stated that the energy consumption of Bitcoin mining in Sweden increased from April to August and now consumes electricity equivalent to 200,000 households.
The regulator said in a statement: “Crypto assets are a threat to the climate transition – energy-intensive mining should be banned. Cambridge University and Digiconomist estimate that the two largest crypto assets, Bitcoin and Ethereum, will last for one year. Electricity consumption is about twice that of Sweden as a whole.”
Sweden’s electricity prices are relatively low, thanks to its emphasis on the use of renewable energy. Ironically, it is these low prices that have attracted miners and have renewed their impact on the environment. Since China declared all cryptocurrencies illegal a few months ago, the problem has become more serious, forcing miners to move elsewhere.
It’s not just cryptocurrency mining that affects the environment. Many people have been chasing the NFT market recently, but its carbon footprint is also not low, which is equivalent to the electricity consumption of an average person living in the EU for more than a month.
Not everyone agrees with the assessment of the Swedish supervisory authority. Melanion Capital, a Paris-based alternative investment company, said, “The claim that Bitcoin miners harm the power network is completely wrong.”
“[Bitcoin miners] lack such political checks and balances. In the case of unequal voices, they should not seek opportunities to unilaterally implement restrictive measures to make an industry illegal due to lack of defensive capabilities.”