Swedish financial supervisor Finansinspektionen has spoken out against investing in crypto assets on the grounds that they threaten the climate transition due to the energy-intensive mining behind them – and said companies that invest and trade in such assets should not be allowed to claim sustainability credentials.
In a joint article by Erik ThedÃ©en, Managing Director of the Swedish FSA, and BjÃ¶rn Risinger, Managing Director of the Swedish Environmental Protection Agency, posted on the FSA’s website, the couple said the The most common method of producing crypto assets required huge amounts of electricity. and generated a lot of CO2 emissions.
Crypto asset producers now wanted to use more renewable energy and were increasing their presence in the Nordic region, they said.
“Sweden needs the renewable energy targeted by crypto-asset producers for the climate transition of our essential services, and the increased use by miners threatens our ability to meet the Paris Agreement,” argued ThedÃ©en and Risinger.
“Our conclusion is that policy measures are needed to tackle the damage caused by the proof-of-work method of extraction,” they said, adding that it was important for Sweden and the EU to be able to use the renewable energy from the Nordic nation where it offered the most benefit. for society as a whole.
Directors-General called for three steps – for the EU to consider banning the proof-of-work of the energy-intensive mining method, and second for Sweden to stop crypto-mining production using energy-intensive methods.
The third demand made by ThedÃ©en and Risinger is as follows: “That companies that trade and invest in crypto assets, which have been mined using the proof-of-work method, cannot be allowed to describe themselves or to market their activities or activities as sustainable â.
They admitted in the article that there was a risk that these measures could lead to the relocation of crypto producers to other countries, which could lead to an overall increase in carbon emissions.
“But it is important that Sweden and the EU lead the way and lead by example in order to maximize our chances of complying with the Paris Agreement,” both said, adding that other countries and regions should strongly be encouraged to follow suit.