Governments in more eco-friendly nations contemplating a ban on Bitcoin mining may be inflicting more significant harm on the global economy, according to researchers.

“Well-intentioned policies may lead to unintended consequences, notably the redirection of mining activities to regions with higher carbon intensities,” Exponential Science researchers opined in a recent report viewed by Cointelegraph.

The researchers further explained that Bitcoin ( BTC ) mining bans in “low-emission countries can result in a net increase in global carbon emissions, a form of aggravated carbon leakage.”

Bitcoin mining bans may do more harm than good

They indicated that if countries that use more eco-friendly sources of energy ban Bitcoin mining, the activity may move to less environmentally friendly nations, resulting in increased carbon emissions for the global economy.

“Not all Bitcoin mining is equal as countries utilize varying energy sources of varying environmental impact,” it reiterated, noting the significant potential repercussions if Canada — a nation extensively utilizing nuclear and hydro-electric energy — were to ban it:

“A mining ban in Canada would lead to the largest positive impact on emissions, increasing network emissions by approximately 5.6%, or 2.5 million tonnes of CO2 annually.”

Manitoba’s recent pause extension

On April 24, Cointelegraph reported that the Canadian province of Manitoba had extended a moratorium on new requests to the government-owned Manitoba Hydro agency for electrical service for cryptocurrency operations. 

The Manitoba pause extension applies to crypto miners’ new requests and “requests for electric service which have not resulted in the execution of an agreement to construct infrastructure.”

Related: Paraguay’s proposed Bitcoin mining ban could cost $200M a year

Meanwhile, on Nov. 1, Russian President Vladimir Putin signed a set of laws providing a regulatory framework for crypto mining operations in Russia.

Although the legislation defines key legal concepts in crypto mining, industry experts caution that Russia has not fully “legalized” crypto mining. Instead, they see the measures as a framework establishing new controls and restrictions for the sector.

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