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Proof-of-Work Ban Removed From Proposed EU Crypto Regulations

Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation

A text threatening to ban cryptocurrencies based on energy-intensive proof-of-work mining has been removed from the bill aimed at regulating the European crypto space. The move comes after the controversial provision sparked objections from the crypto community.

MiCA Proposal Removes Ban on Proof of Work Coins

Wording that could have banned cryptocurrencies with proof of work (PoW) mining, like bitcoin, is missing from the latest release of European crypto asset markets (Mica) framework. The European Parliament (EP) was expected to approve the proposal on the last day of February, but the vote was postponed to address concerns raised by crypto industry representatives.

“Bitcoin ban in the EU is not considered at the moment”, BTC Echo noted, citing the document. The German crypto outlet revealed that the controversial paragraph had been dropped. The text proposed by the Left, Green and Social Democrat factions would have prohibited companies from offering services for the acquisition, custody and trading of PoW-based crypto assets.

The planned vote was canceled at the request of Stefan Berger, the rapporteur for the legislative package, who has just confirmed BTC Echo’s report in a Tweeter posted late Tuesday. He also told the publication that negotiations had resumed.

“We now want to get the MiCA through parliament as quickly as possible,” Berger stressed. His statement echoes a call by European Central Bank President Christine Lagarde, who last week urged the EU to quickly adopt the regulation to prevent Russia from using cryptocurrencies to evade sanctions. imposed for its military invasion of Ukraine.

“The talks are in full swing,” said Berger, a member of the Economic and Monetary Affairs Committee. Once the EP has adopted the regulatory package, its final adoption will depend on the outcome of the dialogue between the Parliament, the European Commission and the EU Member States. The executive body in Brussels will then assess the future implementation of the approved project.

Over the past few months, officials and regulators in several member states have called for an EU-wide ban on proof-of-work mining, underscoring its power-hungry nature. Sweden was among the first to insist on such a move, citing the growing use of renewable energy through bitcoin mining at the expense of climate neutrality goals in other sectors.

Keywords in this story

ban, Bitcoin, concept, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, EC, EP, EU, European Commission, European Parliament, European Union, framework, Legislation, MPs, MiCA, PoW, ban, Proof of work, proposal, Rules, Stéphane Berger

Do you expect the EU to adopt the Crypto Asset Markets proposal soon? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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