Could the EU Regulate Bitcoin Mining Out of Existence?

9 months ago 4

ARTICLE AD BOX

The European Commission does not like Bitcoin and is planning a crackdown on mining operations. A recent report includes harsh labeling of digital assets. Moreover, EU regulators could curtail the electricity supplies to Bitcoin mining facilities in the bloc.

On January 31, crypto environmentalist and venture capital investor Daniel Batten shared a section of a report by the European Commission highlighting its plans to curtail crypto.

EU Planning on Bitcoin Ban?

According to a posted section of the report, it paves the way for a defacto EU ban on Bitcoin mining in 2025.

“While we were sleeping, the European Commission has been creating a report which they plan to label Bitcoin environmentally harmful, a threat to EU energy security, and a haven for financial criminals.”

According to the report (which was not sourced), the European Central Bank (ECB) and European Securities and Markets Authority (ESMA) are spearheading the crackdown.

The EC’s current position on Bitcoin mining is that it is an,

“Environmentally harmful, energy-wasting, and obsolete consensus mechanism.”

It proposes additional measures to curtail mining activities. These include carbon taxes and the ability of EU members to shut off power to BTC miners for “energy security” reasons. Additionally, it will formally label BTC as harmful to the environment.

It will also empower the ECB to devise ESG rules around institutional investment into Bitcoin. The central bank will economically disincentivize or “prohibit investment into Bitcoin” and related products.

In other words, the European Central Bank may use its power to effectively ban Bitcoin for EU members.

Batten stated that Open Dialogue Foundation founders Lyuda Kozlovska and Bota Jardemalie have done the hard work. They have been reading through every EC document and “fighting this for 18 months,” he added.

He cautioned that this could set a precedent for other nations. The ESMA, who work closely with the ECB, has signaled that once the report is accepted in the EU, “they will push for it to become the standard in other nations.”

“Like other wars, this war starts in the EU but may not end there.”

He added that the EU Central Bank has the resources, knowledge of the legal process, and history of “peer-reviewed misinformation” on Bitcoin’s environmental impact.

Environmental Impact FUD Refuted

Earlier this week, BeInCrypto reported that a UN study on Bitcoin mining was scrutinized for its reliance on outdated sources and selective bias.

Moreover, the Bitcoin environmental impact FUD has been refuted many times in recent months. Additionally, the percentage of renewable energy used in global BTC mining operations continues to increase.