A new measure from the EU targets the bitcoin mining business.
The EU is set to pass a bill that would hinder bitcoin mining while encouraging the use of quota-based cryptocurrencies.
According to a Bloomberg report, the EU is set to launch an energy efficiency tag of bitcoin and cryptocurrencies to prove work in an effort to deter energy consumption.
based on the proposed law that Bloomberg News has access to
the European Commission is reportedly working with international partners to establish a classification procedure aimed at "encouraging more environmentally friendly encryption systems such as quota proof."
The bill should be passed later today
and calls on the international political scene to lobby against the energy consumption of bitcoin miners.
The move against bitcoin miners appears to be a preamble as the EU prepares for winter with less support from Russian gas reserves as a result of the ongoing war.
According to the report, the EU Executive Assistant said:
- "Just as their use has grown exponentially
- the energy consumption of
- cryptocurrencies has more."
"When using cryptocurrencies and other blockchain technologies in energy and trading markets, care must be taken to use only the most energy-efficient versions of the technology," the Executive Assistant continued.
Furthermore
EU member states will be urged to reduce tax breaks for bitcoin miners, and in case of electricity shortages, members must also be prepared to stop all mining operations.
In addition
a report will be released examining the impact of bitcoin mining on climate by 2025.
However, fear, uncertainty and doubt about the effects bitcoin may have on the climate is nothing new.
The Bitcoin Mining Board
- including Michelle Saylor
- Jack Dorsey and Fidelity Investments
- wrote a letter to U.S.
Legislators dispelling a lot of the myths about Bitcoin and energy use.
Michael Saylor followed up with a paper discussing misconceptions about bitcoin and energy use.
In recent months
the Energy Consumption Narrative has tried to regain steam as Greenpeace dumped a new $1 million budget to attack bitcoin while the White House began drafting its own legislation to tackle the bitcoin mining industry.
Legal proceedings for encryption
are expected to be well received
The reforms have a good chance of being well received by a sector that was demanding greater regulatory clarity, which the EU has already begun to provide by implementing market regulation in crypto assets (MiCA).
Regulators have been eager to expand their authority to include cryptocurrency for some time.
In August
the FCA went so far as to indicate the restrictions it intends to impose on cryptocurrency advertising before legislation.
It should be noted that the FCA has recently been criticized for its handling of the industry, particularly in approving new operators' licences.
Notably
the meme FLOKI's advertising campaign was under investigation by the UK advertising watchdog last year after advertising appeared throughout the London Underground.
The committee was supposed to vote on the proposal between now and November 3
- but given that Prime Minister Liz Truss
- announced her resignation on Thursday
- October 20, their plans may need to be changed.
The number of additional ministerial posts could change after the nomination of a replacement, which is scheduled for the following week.
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