EU Carbon Rules May Be Driving Bitcoin Miners Out of Europe

A new study suggests that European Union carbon rules may be driving Bitcoin miners out of the region in search of cheaper and less restrictive electricity. The researchers, from 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 prices, and electricity-sector emissions in Russia.

The study compared the EU with Russia and the rest of the world using statistical models, finding that the EU's higher carbon prices may be encouraging block reward mining operations to relocate elsewhere. The researchers emphasized that their findings do not prove that miners physically moved from the EU to Russia, but are consistent with 'emissions leakage'.

In a separate development, a UK advocacy group has accused major banks in the country of restricting access to banking services for Bitcoin-related businesses. The group pointed to a survey showing that half of fintech and crypto firms have been rejected when opening bank accounts or had their accounts closed.