Sweden’s FSA calls for a ban on proof of work mining

Sweden's Financial Supervisory Authority (FSA) has called for a ban on cryptocurrency mining for tokens based on proof-of-work consensus
Sweden's Financial Supervisory Authority (FSA) has called for a ban on cryptocurrency mining for tokens based on proof-of-work consensus

Sweden’s Financial Supervisory Authority (FSA) has called for a ban on “energy-intensive” cryptocurrency mining for tokens based on proof-of-work consensus. The monetary authority requested the European Union to put a cap on the crypto mining projects occurring throughout the region, for they seem to consume too much energy. 

In their statement, the FSA pointed out that the “crypto-asset producers are keen to use more renewable energy, and they are increasing their presence in the Nordic region.”

“Sweden needs the renewable energy targeted 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,” said the firm.

The FSA informed the authorities of the grave concern surrounding the mining of cryptocurrencies.

“Energy-intensive mining of crypto-assets should therefore be prohibited. This is the conclusion of the director generals of both the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency,” the firm added.

The FSA is keen on clearing out crypto mining activities

It seems that the FSA is now keen on driving crypto miners from the nation. As clear from their statement, the regulatory authority believes that crypto miners are forbidding the nation to switch to renewable sources of energy. As explained by the statement of the regulatory body, as the prices of Bitcoin and other proof of work (PoW) based currencies rise, more miners will join the competition, increasing the difficulty of the encryption puzzle. For more information on Bitcoin mining, visit here.

These puzzles will consume higher energy and yield smaller profits as time goes by. Citing a report by Digiconomist, the FSA mentioned the fact that “Bitcoin and Ethereum, together with use around twice as much electricity in one year as the whole of Sweden.”

The authorities requested the EU to put an end to all cryptocurrency mining activities operating using the PoW algorithm and asked the authorities to “address the harms caused by the proof of work mining method.”

As earlier reported by TheCoinRise, legislators are worried about mining fields and their consumption of electricity.

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