A section of draught legislation intended at regulating the European crypto ecosystem that threatened to restrict cryptocurrencies based on energy-intensive proof-of-work mining has been eliminated. The move comes in response to the crypto community’s opposition to the contentious section.
MiCA Proposal Lifts the Ban on Proof-of-Work Cryptocurrencies
The latest version of the EU’s Markets in Crypto Assets (MiCA) framework omits language that may have prohibited cryptocurrencies using proof-of-work (PoW) mining, such as bitcoin. The European Parliament (EP) was scheduled to vote on the proposal on February 28th, but the vote was postponed to address concerns made by representatives of the cryptocurrency industry.
“A ban on Bitcoin in the EU is currently off the table,” BTC Echo reported, citing the text. According to the German crypto news outlet, the contentious paragraph has been removed. The wording offered by the Left, Greens, and Social Democrats would have prevented businesses from offering services for the acquisition, custody, and trading of crypto assets based on the proof-of-work algorithm.
The intended vote was cancelled at the request of Stefan Berger, the legislative package’s rapporteur, who has now confirmed BTC Echo’s claim in a late Tuesday tweet. Additionally, he informed the publication that negotiations had resumed.
“We now want to expedite the passage of the MiCA through Parliament,” Berger stated. His comment reflects one made last week by European Central Bank President Christine Lagarde, who encouraged the EU to immediately approve the law to prevent Russia from utilizing cryptocurrencies to dodge sanctions imposed in response to its armed invasion of Ukraine.
“Discussions are ongoing,” Berger, a member of the Committee on Economic and Monetary Affairs, stated. After the EP approves the regulatory package, its final adoption will be contingent upon the outcome of the Parliament’s dialogue with the European Commission and EU member states. The executive body in Brussels will then assess the agreed draft’s future implementation.
Several EU officials and regulators have recently asked for an EU-wide prohibition of proof-of-work mining, citing its power-hungry nature. Sweden was one of the first countries to call for such a legislation, citing bitcoin mining’s rising reliance on green energy at the expense of other industries’ climate neutrality aspirations.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
