Europe is not the European Union. Furthermore, they've also tried to ban Bitcoin with the alibi that it helps criminals. They'll always step on a supposedly valid-sounded argument to control you!

They don't care about the environment; their harmful activities can prove it. They don't care if 1% of the users use it for illicit activity; they want to control that 99%. It's the same reason why Binance, Coinbase etc., require KYC. They don't care for those few who'll avoid taxes; there are no studies that reveal tax avoidance reduce due to KYC requirements. They do it to control you.

Also, that EU bill was rejected few days ago.