On the Record by Bitcoin Policy UK

Response to ESMA regarding the MiCA Consultation Paper

Bitcoin Policy UK Episode 32

In this episode, we present an audio version of Bitcoin Policy UK’s response to the European Securities and Markets Authority (ESMA) consultation on the Markets in Crypto Assets (MiCA) Regulation, published on 5 December 2023.

Bitcoin Policy UK challenges ESMA’s focus on the adverse environmental impacts of consensus mechanisms such as Bitcoin mining and calls for a balanced approach that recognises their positive contributions — particularly those of Proof of Work.

The paper explains how Bitcoin mining can:

  • Mitigate methane emissions by consuming stranded or wasted gas
  • Support new renewable energy projects by acting as a flexible, location-agnostic energy buyer
  • Stabilise sustainable power grids through demand response
  • Reuse mining heat for beneficial industrial and domestic purposes

The response also clarifies key misconceptions about how the Bitcoin network operates — distinguishing between miners and validating nodes — and highlights why Proof of Work remains uniquely capable of delivering sustainability benefits.

🧭 Key themes:

  • Correcting ESMA’s misunderstanding of Bitcoin’s consensus process
  • The environmental potential of Proof of Work
  • Methane mitigation and grid stability
  • Positive disclosures in sustainability reporting
  • Why Proof of Stake cannot replicate these benefits

📄 Read the full written paper here:
👉  Response to ESMA regarding the MiCA Consultation Paper

To find out more about Bitcoin Policy UK's work and how you can get involved, visit:

https://bitcoinpolicy.uk/