Bitcoin mining bans in eco-friendly regions may drive operations to higher-emission areas, potentially worsening global carbon output.
Banning mining in environmentally friendly countries could lead to the relocation of operations to regions with higher carbon emissions, resulting in aggravated carbon leakage.
For example, if Canada banned Bitcoin mining, it could increase emissions by 5.6% and add 2.5 million tonnes of CO2 annually.
Varied national policies on mining highlight the need for balanced regulatory approaches to avoid unintended consequences.