The statement released by the EU Commission reads: “In harnessing the use of cryptocurrencies and other blockchain technologies in energy markets and trading, care must be taken to use only the most energy efficient versions of the technology.”
The European Union seeks to curb the energy consumed by crypto mining operations with its latest draft bill.
According to the document released by the EU, it will label cryptocurrencies based on the amount of energy they consume. The union plans to collaborate with its international partners to support PoS tokens.
The EU believes that these steps would cause more cryptocurrencies to switch from PoW to PoS models, leading to a reduction in the power consumed by verifying blockchain transactions.
The proposal was drafted to meet the fuel demands for the coming winter as Russia maintains its position on disrupting gas supply to European nations.
It also urges the bloc to end tax breaks for Bitcoin miners. Moreover, it requires all member nations to be prepared to suspend crypto-mining operations in case of a power shortage.
“In case, there is a need for load shedding in the electricity systems, the member states must also be ready to stop crypto-assets mining.”
Additionally, the EU will release a report detailing the impact of Bitcoin mining on the environment by 2025.
It is worth noting that this is not the first time that the EU has tried to clamp down on crypto mining.
In March, the EU Council tried to ban Bitcoin and other PoW tokens under the guise of “environmental sustainability.” However, the proposal was rejected after most of the MEPs voted against banning Bitcoin.
