EU Markets Regulator Calls for Ban on Proof-of-Work Crypto Mining: Report

Erik Thedéen said that EU regulators should nudge the crypto industry towards the less energy-intensive proof-of-stake mining.

AccessTimeIconJan 19, 2022 at 9:30 a.m. UTC
Updated May 11, 2023 at 6:35 p.m. UTC

Proof-of-work crypto mining should be banned in the European Union (EU), according to the vice chair of the European Securities and Markets Authority (ESMA).

  • Erik Thedéen said EU regulators should nudge the crypto industry towards the less energy-intensive proof-of-stake mining, in an interview with the Financial Times.
  • "The solution is to ban proof-of-work," he said. "Proof-of-stake has a significantly lower energy profile."
  • The proof-of-work model involves miners using scores of powerful computers to solve complex mathematical problems in order to record transactions on the blockchain an be rewarded with new coins. The world's largest two cryptocurrencies - bitcoin and ether - both use this model.
  • Proof-of-stake mining is less energy intensive in that users win the right to record transactions based on how much investment - or "stake" - they have in the network. Ether has plans to migrate to a proof-of-stake model later this year.
  • The EU does not currently account for a particularly significant share of the proof-of-work mining industry. Bitcoin mining is currently dominated by the U.S. (share of 35.4%), Kazakhstan (18.1%) and Russia (11.23%), according to the Cambridge Centre for Alternative Finance.
  • However, with mining banned last year in the previously dominant China, there may be concerns among EU administrators that its previously small share of the mining industry could naturally grow as miners search for new homes.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.