Sweden’s FSA calls for ‘energy-intensive mining’ of crypto-assets to be ‘prohibited’

The age-old issues relating to Bitcoin‘s environmental implications have continued to irk communities and governments the world over. Within the newest pushback towards Bitcoin mining, the Swedish Monetary Supervisory Authority has requested the European Union to enact a blanket ban on cryptocurrency mining which makes use of the “energy-intensive” proof of labor system.

The statement launched earlier at this time was titled, “Crypto-assets are a risk to the local weather transition – energy-intensive mining needs to be banned.” The regulatory physique argued that Bitcoin mining actions had been proving to be a hindrance within the nation’s transition to renewable vitality sources.

Within the backdrop of rising environmental issues, the report additional famous, “crypto-asset producers are eager to make use of extra renewable vitality, and they’re growing their presence within the Nordic area.”

“Sweden wants the renewable vitality focused by crypto-asset producers for the local weather transition of our important companies, and elevated use by miners threatens our skill to fulfill the Paris Settlement. Vitality-intensive mining of crypto-assets ought to subsequently be prohibited.”

The assertion additional questioned the social advantages of crypto belongings by asserting that,

“The patron dangers are important, and crypto-assets are generally used for legal functions resembling cash laundering, terrorist financing, and ransomware funds.”

It additionally added,

“That is alarming, and crypto-assets, subsequently, should be regulated.”

Citing a report by Digiconomist, the report revealed that mining operations for BTC and ETH collectively use round twice as a lot electrical energy in a single 12 months as the entire of Sweden. It additional compiled a comparability of Bitcoin’s annual carbon footprint to showcase the ESG issues to be bigger than simply excessive vitality consumption.

Supply: Digiconomist

The monetary watchdog’s assertion concluded by asserting the necessity to implement coverage measures- “to deal with the harms brought on by the proof of labor mining methodology.” These included an EU-level ban on the mining of cryptocurrencies that use the proof of labor system.

Moreover, it proposed that nation ought to prohibit the “continued institution of crypto-mining manufacturing” utilizing PoW. It additionally recommended that corporations that commerce or put money into PoW crypto belongings be prohibited from declaring themselves to be sustainable.

After China’s blanket ban on cryptocurrency mining earlier this 12 months, miners have scrambled to arrange store elsewhere with the USA coming to their immediate rescue. Nevertheless, like Sweden, environment-conscious teams have raised issues towards the identical.

Lately, companies in New York have reached out to the state’s governor to disclaim permits to the conversion of NYC’s fossil gasoline vegetation into crypto mining facilities, citing environmental issues.

Furthermore, legislators within the state are additionally considering a invoice banning the usage of fossil fuels to mine Bitcoin and are calling for miners to doc their carbon footprints.