Over the years, the expansion of Bitcoin (BTC) has been related to excessive energy usage, and the leading cryptocurrency has been criticized for its carbon footprint. As a result, officials are increasingly proposing new rules to prevent the usage of cryptocurrencies such as Bitcoin.
Bloomberg reported on October 18 that the European Union is the latest body to propose a new regulation that intends to develop grading methods to promote the adoption of environmentally friendly assets running on Proof-of-Stake (PoS) protocols.
In accordance with the legislation, the EU intends to produce an energy efficiency mark for assets such as Bitcoin as a means of reducing the sector’s energy use.
According to the EU, the proposed regulation would be strengthened via cross-border collaboration, while member states will be challenged to rein in miners’ wintertime energy usage.
Notably, the EU area has considered prohibiting PoS mining in the past, despite accounting for 10% of the worldwide market. The planned prohibition was shelved because it was determined that operators must report the energy usage and environmental effect of the assets they chose to advertise.
In 2025, the European Commission is also anticipated to release a study on the crypto industry’s effect on the environment. In general, the bloc has encouraged members to suspend tax advantages for cryptocurrency miners.
Finbold reports that the ESMA has urged the European Union to outlaw Proof-of-Work cryptocurrency mining (PoW). The group warned that dealing with the consequences of climate change would be endangered unless action was taken immediately.
Notably, the EU joins other countries, such as the United States, in targeting the energy usage of crypto mining. According to the White House, continuing mining of cryptocurrencies such as Bitcoin might have an effect on the battle against climate change.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.