EU Carbon Pricing Drives Miners Out, UK Banks Restrict BTC Access

Carbon pricing within the European Union's Emissions Trading System (EU ETS) may be driving block reward miners out of the region. Researchers at the University of Economics Ho Chi Minh City and the Banking University of Ho Chi Minh City found a positive relationship between Bitcoin activity, European carbon allowances, and electricity-sector emissions in Russia.

The study used daily observations from January 2019 to January 2026 to examine the link between bitcoin prices, European carbon allowances, and changes in power sector carbon emissions. The researchers discovered that when Russian emissions were relatively low, a pattern emerged consistent with 'emissions leakage.'

Emitted by EU-based miners may be displaced to Russia, where electricity is cheaper and less carbon-intensive, allowing block reward mining operations to relocate their emissions-intensive activities.

In contrast, U.K. lawmakers are grappling with the digital asset sector's struggle with local banks, which some claim are restricting lawful BTC-related banking activity.