Swedish Financial Supervisory Authority Calls For An EU-Wide Ban on Cryptocurrency Mining

Finansinspektionen, the Swedish financial supervisory authority, has called for a ban on cryptocurrency mining due to crypto-assets, citing them to be a threat to the climate.

“Sweden needs the renewable energy targeted by crypto assets by crypto-asset producers for the climate transition of our essential services, and increased use by miners threatens our ability to meet the Paris Agreement,” the regulator said this week.

“Energy-intensive mining of crypto assets should therefore be prohibited.”

According to the regulator, this view is also shared by the Environmental Protection Agency of Sweden, which is home to abundant renewable energy sources.

This stance on crypto mining came amidst the COP26 conference, where environmental activists call for urgent action against climate change.

Now, the regulator has called for the European Union to consider an EU-level ban on the energy-intensive mining method proof of work (PoW) while noting other methods for mining crypto assets that are estimated to reduce energy consumption by 99.95% with maintained functionality.

Another proposal is for Sweden to introduce measures that stop the continued establishment of crypto-mining production using energy-intensive methods in the country.

Additionally, companies that trade and invest in crypto assets mined using the PoW method not to be allowed to market themselves or their activities as sustainable.

“A ban on the proof of work mining method within the EU could be an important first step in a global move towards a greater use of more energy-efficient crypto mining methods,” wrote Erik Thedéen, Director General at the Swedish Financial Supervisory Authority, and Björn Risinger, Director General at the Swedish Environmental Protection Agency.

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