There has been much discussion about the EU’s proposed MiCA regulation, especially the text that aimed to ban proof-of-work cryptocurrencies such as Bitcoin. Now the law is moving forward, but without these clauses.
A relief for Bitcoin in the EU
The European Union (EU) proposed regulatory package for Markets in Crypto Assets (MiCA) has decided not to promote the controversial provision aimed at restricting the use of the proof-of-work cryptocurrencies due to concerns about energy consumption .
Before moving on to the trilogue negotiations between the parliament, the council and the commission, the EU lawmakers tried to reach a consensus in terms of better regulation of the crypto space. MiCA’s current draft does not include the provision to ban cryptocurrencies such as bitcoin that operate on the proof-of-work protocol.
Stefan Berger, the German legislator who leads MiCA regulation, tweeted on Friday that his proposed mandate not to include a ban on prisoners of war is not being challenged and that the EU has shown “innovative strength”.
The deadline for challenging the mandate ended at midnight Thursday, Berger added, and the MiCA trialogue begins next week.
Non-fungible tokens (NFTs) and decentralized finance (DeFi) are the other topics discussed by parliament. The question is whether they should be included in the MiCA package and which EU institutions should be responsible for overseeing the crypto space.
Europe – A Bitcoin mining house
On March 14, the European Parliament said no to including explicit language for banning proof-of-work cryptocurrencies in a 30-23 vote. Those who lost 1/10 of the vote among MPs to veto an accelerated procedure of MiCA through the trilogues to reinvigorate the proof-of-work ban.
As previously reported by CryptoPotato, according to the August 2021 figures from Cambridge University, Europe comprises about 12-14% of the total BTC mining hash power. Ireland and Germany have the lion’s share of that total, so global hash rates are unlikely to be affected.
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