Hong Kong-based cryptocurrency exchange Crypto.com has announced that it is committed to becoming carbon-negative within 18 months, following carbon-neutral initiatives launched by Hong Kong-based cryptocurrency exchange FTX and Seychelles-registered BitMEX.
Fast Facts:
- The energy consumption associated with cryptocurrencies has been in the spotlight recently, with Tesla founder Elon Musk meeting with cryptocurrency miners as part of an apparent push to make crypto greener. Musk tweeted earlier this month that Tesla would suspend vehicle purchases made with Bitcoin because of the “rapidly increasing use of fossil fuels” in mining coins.
- Crypto.com’s plans include an assessment of carbon generated by cryptocurrency trading, deposits and withdrawals across all of its platforms and non-trading-related activities as part of a carbon offsetting and sequestration program. Crypto.com is planning an external audit of its efforts.
- Earlier this month, FTX Chief Executive Sam Bankman-Fried did the math, saying: “If, for every US$1 you spend on gas/blockchain fees, you donate US$0.0026 to Cool Earth, you’ll be roughly carbon-neutral.” FTX says it intends to donate US$1 million this year to carbon offsetting organizations.
- BitMEX has committed to start offsetting carbon emissions caused by withdrawals from its platform by donating at least US$0.0026 for every US$1 of blockchain fees paid out by its customers.
- Environment groups have criticized carbon offsetting for failing to reduce carbon emissions entering the atmosphere, describing them as a distraction from genuine solutions to climate change.