A French company specializing in alternative investments urged Swedish regulators to abandon the opinion that cryptocurrency mining is unsafe for the EU energy sector.
Paris-based Melanion Capital has appealed to the Swedish Financial Conduct Authority and the Swedish Environmental Protection Agency to
refuse from the prohibition of cryptocurrency mining in the European Union.
“The claim that Bitcoin miners are endangering power grids is completely untrue.”
The company recalled that the business model of miners ceases to be effective when the demand for electricity increases, as this leads to an increase in energy prices. Melanion Capital draws attention to the fact that the Texas authorities, which supported the development of the mining industry, thanks to this, solved the problems with the stabilization of the local power grid.
“Miners are stabilizing renewable electricity generation as they use surplus electricity and provide a base load for an unstable resource like wind or hydropower.”
State energy company Vattenfall agrees with these arguments, which sees bitcoin mining as an opportunity to balance the load on the Swedish energy network.
Melanion Capital expressed concern that the cryptocurrency mining industry does not have a lobby to defend its interests with governments. According to the company, the lack of such a political counterbalance among bitcoin miners should not be used by regulators as an opportunity to ban or restrict the industry.
The opinion of the Swedish authorities resonates with the EU regulators. Recently, the Norwegian authorities supported the Swedish regulators and decided to consider the possibility of a mining ban in the country. Since the growth in electricity consumption by miners does not allow the Scandinavian countries to comply with the Paris Climate Agreement.
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