EU regulator calls for PoW mining ban

The deputy director of the European Securities and Markets Authority said EU regulators should encourage the cryptocurrency market to switch to power-intensive PoS mining.

According to the Vice President of the European Securities and Markets Authority (ESMA), the European Union (EU) should ban cryptocurrency mining under the PoW agreement.

Erik Deen told the Financial Times that EU regulators should encourage the crypto industry to switch to energy-intensive PoS coin mining.

“The solution is to ban PoW-based cryptocurrency mining,” he said. "PoS coins consume less power."

In PoW mode, miners often use multiple powerful computers to solve complex mathematical problems to collect blockchain changes and earn new coins as gifts. Bitcoin and Ethereum, two of the largest cryptocurrencies in the world, both use this algorithm.

PoS mining is not a power struggle as users have the right to write transactions based on resources or “stake” in the network. Ethereum is already planning to move to PoS later this year.

The EU currently does not have the particularly large size of PoW coin mining activities. According to the Cambridge Center for Alternative Finance, Bitcoin mining is currently taking place in the United States (35.4%), Kazakhstan (18.1%) and Russia (11.23%).

However, as China, which once dominated bitcoin mining last year, began banning it, EU regulators could see a significant share of the market as old bitcoin miners seek new ones. houses.