The EU’s market regulator has expressed his disapproval of crypto’s proof-of-work mechanism.
The European Securities and Markets Authority’s (ESMA) vice-chair, Erik Thedéen, has stated his reservations regarding the nature of proof-of-work mining. He feels that PoW mining consumes a lot of energy and that the European Union should mandate proof-of-stake mining instead.
He even went so far as to say in an interview with the Financial Times:
“The solution is to ban proof-of-work. Proof-of-stake has a significantly lower energy profile.”
Thedéen’s remark seemed to be overly harsh, given that crypto miners were scarce in the European Union at the time. Following the Chinese ban, the United States took the lead in crypto mining, accounting for 35.4 percent of global mining capacity, according to the latest data from the Cambridge Center for Alternative Finance. Kazakhstan (18.1 percent) and Russia come second and third, respectively (11.23 percent ).
However, some feel that prohibiting mining in China (and maybe other nations) will lead to miners relocating to Europe. However, this scenario appears to be improbable at the time.
However, not only in Europe but around the world, the general attitude toward crypto appears to be geared toward better regulation within the extent of adoption rather than enforcing restrictions. As is the case with everything, time will tell in the end.