Melanion Capital: Swedish regulators overestimate the danger of mining for EU energy – Bits Media

French company, specializing in alternative investments, called on Swedish regulators to abandon their opinion, that cryptocurrency mining is unsafe for the EU energy sector.

The Parisian company Melanion Capital appealed to the Financial Services Authority Swedish Supervision Authority and the Swedish Environmental Protection Agency with an appeal
abandon the ban on cryptocurrency mining in the European Union.

"Statement, that Bitcoin miners are jeopardizing power grids, completely untrue".

The company reminded, that the business model of miners ceases to be effective when demand for electricity increases, as this leads to an increase in energy prices. Melanion Capital takes notice, that Texas authorities, who supported the development of the mining industry, thanks to this, problems with stabilizing the local power grid were solved.

“Miners stabilize electricity production from renewable sources, as they use excess electricity and provide base load for an intermittent resource, such as wind or hydropower".

State energy company Vattenfall also agrees with these arguments., which sees Bitcoin mining as an opportunity to balance the load on Sweden's energy grid.

Melanion Capital expressed concern, that the cryptocurrency mining industry does not have a lobby to defend its interests before governments. According to the company, The lack of such political counterbalance from Bitcoin miners should not be used by regulators as an opportunity to ban or restrict the industry.

The opinion of the Swedish authorities resonates with EU regulators. Recently, the Norwegian authorities supported Swedish regulators and decided to consider the possibility of banning mining in the country. As rising electricity consumption by miners prevents Scandinavian countries from complying with the Paris climate agreement.