Europe To Implement Measures Regulating Crypto Mining Amidst Energy Crisis
The European Union (EU) made available a set of documents relating to an implementation action plan for the European Green Deal and the REPowerEU Plan, both of which aim to reduce energy consumption through digitizing the energy industry. Crypto miners and many other energy consumers are targets for European energy planners.
Energy demand for cryptocurrency mining has doubled over the past two years, according to a communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions.
Energy prices have been soaring, and the energy demand in Europe has gone exponentially high over the past few months. In light of the above, the European Commission, the executive arm of the EU, is considering banning crypto mining from saving energy.
The European Commission is urging member states to implement targeted and proportionate measures to lower the electricity consumption of crypto-asset miners in a longer-term perspective by putting an end to tax breaks and other fiscal measures benefiting crypto-miners owing to the tight energy situation this winter caused by disruptions in Russian energy supplies.
The invasion of Ukraine can have severe repercussions for cryptocurrencies, especially Bitcoin. News reports suggest that mining cryptocurrencies consume 0.4 percent of the world's electricity, thrice what the Bitcoin Mining Council acknowledges. The European Commission has stated to this effect criticizing the energy consumption of cryptocurrencies and lauding Ethereum, which now consumes 99 percent less energy.
