A lot of discussion surrounding EU’s proposed MiCA regulations, especially the provisions of banning Bitcoin
There’s been a lot of discussion surrounding the EU’s proposed MiCA regulations, especially the text aimed at outlawing proof-of-work cryptocurrencies like Bitcoin. Now, the law is moving forward but without these clauses.
It’s official: EU said No to provisions restricting Bitcoin
The European Union’s (EU) proposed Markets in Crypto Assets (MiCA) regulatory package has decided not to advance the controversial provision targeted at limiting the use of the proof-of-work cryptocurrencies due to energy consumption concerns.
Before moving on to the three-paragraph talks between parliament, council and commission, EU lawmakers are trying to reach a consensus on better regulating the crypto space. MiCA’s current draft does not include a provision banning cryptocurrencies like bitcoin from operating on the proof-of-work protocol.
the German lawmaker leading the MiCA regulation tweeted on Friday that his proposed mandate of not including a POW ban is not challenged and that the EU has shown “innovative strength.” The deadline for challenging the mandate ended at midnight on Thursday, Berger added, and the MiCA trilogue will begin next week.
Im Bericht schlug ich vor, #MiCA mit der EU Taxonomy for Sustainable Finance zu verbinden. Ich bin optimistisch, dass dieser Vorschlag bei Kommission & Rat Zustimmung findet /2
— Stefan Berger (@DrStefanBerger) March 25, 2022
NFTs token and DeFi were other topics discussed by the parliament. Whether they should be included in the MiCA package and which EU institutions will be responsible for overseeing the crypto space.
On March 14, the European Parliament refused to include explicit language to ban proof-of-work cryptocurrencies in a 30-23 vote. The losers need a tenth of the vote among MPs to veto a quick MiCA procedure through the first paragraphs to reinstate the proof-of-work ban.
Europe accounts for around 12-14% of total BTC mining hash power, according to August 2021 figures from the University of Cambridge. Ireland and Germany have a large share of that total, so the global hash rate is unlikely to be affected.
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