Researchers from Exponential Science caution that eco-friendly nations considering Bitcoin mining bans may unintentionally inflict greater harm on the global economy.
Their recent report argues that such prohibitions could result in a shift of mining operations to regions with higher carbon emissions, leading to an overall increase in global carbon output—a phenomenon referred to as aggravated carbon leakage.
The report highlights the significant implications of banning
Bitcoin
mining in countries like Canada, which heavily utilizes nuclear and hydroelectric power for energy. Such a ban could increase emissions by approximately 5.6% annually, equating to around 2.5 million tonnes of CO2 being released into the atmosphere.
In the context of ongoing regulatory developments, Manitoba recently extended its moratorium on new electricity service requests for cryptocurrency operations, which affects both new applications and those that haven’t resulted in infrastructure agreements.
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On the other hand, Russian President Vladimir Putin signed a set of laws on November 1 to establish a regulatory framework for crypto mining in Russia. However, industry experts note that these measures do not fully legalize crypto mining; instead, they create new controls and restrictions that could shape the future of the sector.
The researchers emphasize that not all Bitcoin mining practices are equal, as countries utilize varying energy sources with different environmental impacts. Therefore, the implications of mining regulations must be carefully considered to avoid counterproductive outcomes.
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