ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining – Bits Media

ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining (ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining) ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining (ESMA Guide Calls for Prohibition of PoW Cryptocurrency Mining) called on continental regulators to consider the possibility of a complete ban on cryptocurrency mining using the PoW consensus algorithm.

The main reason for ban Eric Theden calls the growing energy consumption when mining Bitcoin and other cryptocurrencies using the Proof-of-Work algorithm, reports Financial Times. According to an ESMA representative, miners may well continue to mine cryptocurrencies, they should just switch to coins, based on the Proof-of-Stake algorithm and similar ones.

What to do with a huge amount of Bitcoin mining equipment, the official did not explain.

A week, who also serves as CEO of the Swedish Financial Services Authority, claims, that Bitcoin miners have become a “national problem” and can influence climate change:

"The solution is, to ban cryptocurrencies on PoW. Proof-of-Stake algorithm requires much less energy. We need to discuss redirecting the development of the mining industry to more efficient technology.".

In Sweden, a large share of electricity is generated from renewable sources, but, ESMA Vice President laments, Often this energy is spent on Bitcoin mining. Then what could electricity consumers do?, derived from fossil fuels. In the end, Teden says, emissions of CO2 and other harmful substances into the atmosphere remain at the same level.

It is worth noting, what now, according to the Digiconomist service, The annual energy consumption of all Bitcoin miners exceeds 200 Evenings *. It's noticeably bigger, what does all of Sweden consume? (130 Evenings *) and comparable to the consumption of such a country, like Thailand. Confirming one transaction in the network of the first cryptocurrency consumes 2,192 kWh.

In early January, Kosovo authorities banned cryptocurrency mining, to cope with the consequences of the energy crisis.