The EU cannot ban Bitcoin mining

According to the EU Commissioner, cryptocurrency mining is completely legal in Europe and is subject to standard electricity regulations. In a statement released last week, Maria Gabriel, the EU Commissioner for the Digital Economy and Society, explained that the energy-intensive nature of cryptocurrency mining is not inconsistent with regulation.

“If the energy consumed for this activity is produced in accordance with the law, there is no legal basis to prohibit or even limit it. Since cryptocurrency mining is not an illegal activity, the Commission has not established any means of monitoring it,” the statement said.

Cryptocurrency mining, as an energy-intensive activity, is subject to EU rules relating to “energy efficiency, the energy sector and greenhouse gas emissions,” Ms. Gabrielle added. In addition, the European Commission will continue to analyze the impact of cryptocurrency on consumption and energy demand.

It is currently unclear how much bitcoin is mined in the EU. Cryptocurrency mining activity remains concentrated in China, despite rumors that regulators could shut down the industry. “However, it cannot be ruled out that some of the mining is taking place in the EU,” the European Commissioner said.

The Washington Post recently reported that Iceland, which generates most of its own electricity through hydroelectric dams, now has more cryptocurrency mining projects than the island’s energy supply can support. Although Iceland is not a full member of the EU, it is part of the European Economic Area.

Experts told WP that bitcoin mining itself consumes approximately 0.14 percent of the world's total electricity production. Solving the energy supply problem is a strong incentive to experiment with sustainable energy sources.