Categories: Bitcoin

No Legal Basis to Ban or Limit Bitcoin Mining: EU Official


Get Trading Recommendations and Read Analysis on CryptoLiveClub for simply $39 monthly.

The European Commission has confirmed that it’s paying consideration to considerations about rising electrical energy consumption for cryptocurrency mining within the European Union, in accordance to European Commissioner Mariya Gabriel, who oversees digital economic system and society.

According to a discover on the European Parliament web site, Gabriel addressed the problem in response to a query posed to the parliament.

Power Consumption Accelerates

The Commission, Gabriel famous, is conscious of the considerations on rising electrical energy consumption for cryptocurrencies and blockchain know-how generally.

The concern is particularly vital for bitcoin, for which mining is concentrated in China. While two-thirds of all mining takes place in China, in accordance to some estimates, some quantity of mining takes place elsewhere.

There is at the moment no authorized foundation to stop or restrict vitality consumed inside the EU, the assertion famous. But given consumption is an financial exercise, it’s topic to EU guidelines that apply to vitality effectivity, the ability sector and greenhouse gasoline emissions. Greenhouse gasoline emissions within the energy sector are coated by the EU emission buying and selling system.

The cryptocurrency mining enterprise mannequin relies on delivering a excessive valuation of cryptocurrencies, the assertion famous. The rising electrical energy consumption and value is probably going to modify the worth of and demand for cryptocurrencies.

Mining Is Legal

The Commission has not invoked any method to monitor cryptocurrency mining as a result of it isn’t an criminal activity. However, the Commission will evaluation the exercise because it impacts the demand for vitality.

It is necessary to remember the fact that many promising purposes of blockchain know-how should not have in depth want for processing energy, Gabriel’s assertion additional famous.

In January, International Monetary Fund Managing Director Christine Lagarde instructed the World Economic Forum that bitcoin mining is just too vitality intensive. Many analysts and environmentalists have sounded the alarm on the trade’s energy utilization, and Lagarde stated that it has turned in to a “big concern” on condition that the world is already battle local weather change.

Also learn: IMF’s Lagarde says that bitcoin mining consumes an excessive amount of electrical energy

EU Explores Blockchain

The European Commission introduced plans final yr to set up an EU Blockchain Observatory in response to a European Parliament mandate to strengthen technical experience and regulatory capability. The undertaking will embrace an observatory and a discussion board to collect enter on distributed ledger know-how and blockchain know-how. The objective is to set up an EU experience useful resource for forward-looking blockchain matters and develop EU use circumstances.

Another objective is to help the EC in figuring out what function – if any – authorities authorities can play to encourage the creation of such applied sciences and to develop coverage suggestions.

Featured picture from Shutterstock.

Follow us on Telegram.
Advertisement

Disqus Comments Loading...
Share

Recent Posts

Bitcoin Has Outperformed Apple & other Tech Stocks Since Last January

In January of last year, the U.S. stock market went through one of the largest bull markets in recent history,…

1 min ago

Blockchain is a ‘Systemic Risk’ for Financial Industry: DTCC Exec.

The Depository Trust & Clearing Corporation or DTCC issues a report every year on the stability of the global financial…

2 hours ago

If You Mine Ethereum, You’re a Target for Crypto Hackers

Hackers have devised a new way to steal your cryptocurrencies. This time, they are running a massive scanning campaign to…

3 hours ago

Bitcoin Tax Confusion Has Accountants Turning to Specialized Software

Every time you convert Bitcoin to anything, be it goods or services, other cryptocurrencies, or even tax payments, it might…

5 hours ago

No, the Price of Bitcoin Didn’t Drop Because of Bomb Threats

On Friday, as the Bitcoin price fell by around six percent against the U.S. dollar, several reports claimed that the…

6 hours ago

Alleged Reporter Says Republicans Won The Market

A person claiming to be the designated reporter for an Augur predictions market which asked the question “Which party will…

8 hours ago

This website uses cookies.