We all are aware that cryptocurrencies are getting more acceptable these days. When more people adopt and accept it, there comes scope for regulating it. But the regulations, there are a few countries that are taking steps towards banning them. Government is not just considering crypto trading, but they are also taking cryptocurrency mining into consideration. If you want to start bitcoin trading, read the review page to acquire an utter guide to crypto trading everything gradually.
The government of many countries is considering mining as a threat to the environment. That is because it utilizes a lot of energy. Recently, the Hungary Central bank issued a summons for crypto mining & trading BAN. The entire world is moving towards investing in cryptocurrency and this decision by the Hungary central bank is very huge. If you have not come across this news about the crypto trading and mining ban in Hungary, then here we have covered some important points for you.
Hungary Bans crypto trading and mining:
On 11th February, Hungary Governor announced a complete ban on the trading and mining of cryptocurrency. The Governor mentioned that the decision was made as these trading transactions are leading to many illegal activities.
Recently, even China has put a complete ban on any transaction that involves cryptocurrency in it. There is also a proposal from Russia in recent times regarding the prohibition of digital asset usage. But this proposal did not last very long. Rather than prohibiting it, Russia has now decided to regularize it.
PoW mining Ban:
The European Union has called for a complete ban of Proof-of-Work mining. Erik Thedeen, who is the Vice-Chairman of the European Securities And Markets Authority (ESMA) has announced this decision. He says that there is a lot of risk for the environment due to the Proof-of-Work mining activities. He also added that Proof-of-Stake mining should be encouraged as it does not utilize more energy compared to PoW.
China has banned Bitcoin Mining, but none of the governments or any government agencies spoke anything about it. This decision by Erik Thedeen was just before the Sub-committee of the US had a hearing on the same. The lawmakers of the US are also in favor of the decision made by Thedeen.
During the stage of this US hearing, several questions were raised.
If mining cryptocurrencies is risky for the environment, then China and the US have emitted 11580 metric tons and 5830 metric tons of Carbon Dioxide in 2016. When it comes to the Bitcoin mining process, only 36 metric tons of carbon dioxide were emitted in 2020 and 39 metric tons were emitted in 2021, respectively. That means, quite a less amount was emitted due to the Bitcoin mining when compared to the others.
Even printing and minting of fiat currency emits almost 8 metric tons of Carbon Dioxide every year. Along with this, even gold mining emits somewhere around 100 to 150 metric tons of carbon dioxide every year.
So, it is not just Bitcoin or cryptocurrency trading and mining that is harmful to the environment. There are several factors that influence the environment. And even if you consider just Carbon dioxide emission, there are many other things that emit more than what cryptocurrency mining and trading do. There is no point in banning the trading and mining of cryptocurrency in Hungary or any other country across the world.
Proof-of-Stake can be a better way for mining and trading cryptocurrencies. They use less energy. But there is no point in banning them completely. European Union citizens can buy or trade cryptocurrencies abroad. All the holding and transactions done on cryptocurrencies will be tracked by the regulators. So, they can hold some cryptocurrencies without any worries.
There are many countries that are considering the environmental risks of cryptocurrencies and hence planning for a ban. But not many of them have been announced yet. Also, there are alternate ways to avoid this and so many countries are working towards it. Proof-of-Stake is a great way to avoid the risks to a great extent. So, countries may consider this as an option rather than imposing a complete ban on it.
So, let us wait for the government and the government agencies to make a decision before you conclude which countries are going to ban it.