Members of the European Union should be prepared to completely block the mining of cryptocurrencies. This is stated in the statement of the European Commission. The EU is also developing an energy efficiency label for blockchains.

The reason for this decision is the preparation of the European region for winter with a number of uncertain circumstances. The need for restrictions arose due to interruptions in gas supplies from Russia. Some participants fear high energy prices, power shortages and power outages.

“If it is necessary to shed load in the power supply systems, [EU] member states should also be prepared to stop the mining of crypto assets,” the document says.

Load dumping refers to the intentional shutdown of electricity supplies to certain consumers by energy companies in order to avoid the collapse of the entire network.

Additionally, the European Commission intends to “put an end to tax incentives and other fiscal measures in favor of crypto miners that are currently in place in some member states.” These measures are seen as an instrument of influence in the long term.

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“In the coming months and years, the Commission intends to take various steps to develop digital energy services while ensuring an energy efficient ICT (information and communication technology) sector, including … energy efficiency labeling for blockchains,” the Commission also said in a statement.

The European Commission claims that the energy consumption of crypto mining has increased by 900% in 5 years, reaching about 0.4% of the world’s electricity consumption. At the same time, Europe accounts for 10% of the world mining based on the concept of proof-of-work. By 2025, the Commission plans to submit another report on this topic, which may recommend further measures to reduce the energy consumption of cryptocurrencies.

Source: coindesk