A top European Union commissioner recently confirmed the fact that mining cryptocurrencies is legal and does not violate any laws and is only subject to regular rules regarding electricity usage.
Mariya Gabriel, the European Commissioner for Digital Economy and Society, spoke about the concerns regarding cryptocurrency in a statement released last week. She addressed issues regarding the power hungry nature of cryptocurrency mining as well as clarified the stance of the EU authorities and regulatory bodies on the status of the same.
According to her, if the process of cryptocurrency mining consumes energy according to limits set by European law, then there is no legal right or framework by which authorities can block or prohibit cryptocurrency mining. She also said that cryptocurrency mining is not an illegal activity and the authorities have no plans to track mining.
But, she added that as cryptocurrency mining is a resource-intensive activity, it is subject to the same EU regulations related to energy efficiency and greenhouse gas emissions.
The commissioner also spoke about other aspects of cryptocurrency mining and said that the European Commission would continue to observe the impact of cryptocurrency mining on energy consumption and energy demand throughout Europe.
Gabriel also said that the current extent of cryptocurrency mining carried within EU borders and EU member states is not yet known and spoke about the fact that the majority of cryptocurrency mining activity is still concentrated in Asian countries, specifically China, even though the Chinese authorities may implement certain rules to restrict mining activity in the country.
Washington Post recently reported about the power situation in the country of Iceland, where prospective cryptocurrency mining projects seek to consume more power than the country could afford to supply.
Iceland generates its electricity majorly through hydroelectric power plants. But, Iceland is not an EU member but is a part of the European Economic Area or the EEA.
Many energy experts have earlier said that cryptocurrency mining around the world consumes around 0.14 percent of the world’s total electricity supply.
Many in the cryptocurrency industry are advocating for experiments and measures to generate energy for cryptocurrency mining through sustainable solutions, which includes the use of renewable sources of energy as a power source.