The ‘ban’ on Bitcoin has been removed from the EU crypto regulations. The Markets in Crypto Assets bill would establish a regulatory framework for crypto assets across Europe. Last week, a vote on the bill was postponed due to language about “environmentally unsustainable consensus mechanisms.” That language has now been deleted from the document.
The ‘ban’ on Bitcoin has been removed from the EU crypto regulations
A provision of a proposed European Union bill that would have made it unlawful for crypto services to deal in coins based on proof-of-work—the consensus technique Bitcoin and Ethereum use to “mine” new currency and secure their networks—has been canceled.
On Monday, February 28, the European Parliament will vote on the Markets in Crypto Assets (MiCA) bill, which was introduced by a coalition led by Stefan Berger. However, it was postponed until late last week when many members of parliament objected to a clause about proof of employment.
The bill’s paragraph 61 (9c) has been eliminated entirely, according to Berger, however, the vote has yet to be rescheduled. MiCA has the ability to change the way people think about bitcoin in Europe. It would require the European Central Bank to “create consistent rules for crypto-asset service providers and issuers at EU level,” as it was recommended in September 2020.
In a nutshell, it would provide a regulatory framework for crypto across the European Union, something that the United States and other countries are still working on.
However, one sentence, in particular, drew the attention of crypto enthusiasts. It stipulated that no crypto assets could be issued, sold, or traded in the EU after 2025 if they used “environmentally unsustainable consensus procedures.” Crypto assets would have to meet “minimal environmental sustainability standards” to avoid being banned.
Opponents of the measure stated that it would effectively ban Bitcoin and Ethereum mining in Europe, as well as make it impossible for custodians to keep proof-of-work tokens for their customers.
Berger says that this was not the intention of the legislators. He said that “particular portions of the draught report can be misunderstood & taken as a POW prohibition” when announcing the postponed vote last Friday.
Environmental concerns, on the other hand, are weighing heavily on Europe, whose member states are attempting to achieve the Paris Agreement’s climate criteria. Finanspektionen, Sweden’s financial regulator, suggested a ban on mining Bitcoin and other proof-of-work coins last year, claiming that the energy costs outweighed the benefits.
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