European Union Introduces Law to Crypto Mining This Winter
Members of the European Union must put legislation in place to stop crypto mining for a winter of uncertainty. Also want blockchains to show energy efficiency labels and end crypto tax relief
The European Union is developing an energy efficiency label for blockchains as disruptions to gas supplies from Russia have some concerned about high energy prices, power outages and shortages.
In the future the Commission intends to find various ways to promote digital energy services to save energy including… an energy efficiency label for blockchains.
Offloading is when energy companies intentionally turn off supply to a certain group of users to prevent the entire grid from being flipped. “In the event that there is a need to reduce the load in the power system, [EU] Member States must also be ready to stop mining crypto-assets,” the commission said.
In the long run, “it is important to end the tax breaks and other financial measures in favor of cryptocurrency miners currently in effect in a number of Member States,” the commission said.
European Union lawmakers have revised the law to apply to Bitcoin. Currently, agencies are very interested in the energy consumption of technology.
The commission said that the energy consumption of cryptocurrencies has increased by 900% in 5 years, reaching about 0.4% of electricity used worldwide. At the same time, in 2025 it is possible to propose further measures to cut down on the energy use of cryptocurrencies.
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