The EU’s MiCA regulations have been the subject of much discussion, particularly the proposal that would ban proof-of-work cryptos like Bitcoin. The law is now moving forward, but it doesn’t include these clauses.
EU Relief for Bitcoin
Markets in Crypto Assets (EU) has been rescinded by the European Union. This controversial provision was intended to limit the use of proof-of-work cryptocurrencies because of energy consumption concerns.
The EU legislators were working to find a consensus on better regulation of the crypto space before moving to the trilogue negotiations among the council, parliament, and commission. The MiCA draft does not contain a provision to ban cryptocurrency like bitcoin that operate on the proof-of work protocol.
Stefan Berger, the German lawmaker who is leading the MiCA regulation, tweeted Friday that his mandate to not include a POW ban was not being challenged and that the EU had shown “innovative power.”
Berger said that Thursday’s midnight deadline was met and that the MiCA trilogue would begin next week.
The parliament also discussed non-fungible tokens, or NFTs, and decentralized financing (DeFi). It is unclear if these should be included in the MiCA package, and which EU institutions should oversee the crypto space.
Europe – A Bitcoin Mining House
The European Parliament voted no on March 14th to include explicit language for banning proof of work cryptocurrencies. To veto the fast-track MiCA procedure through the trilogues, those who lost required 1/10th of the votes from MPs. This would have allowed them to revive the proof-of work ban.
According to August 2021 Cambridge University figures, Europe accounts for around 12-14% total BTC mining power. The lion’s share is held by Germany and Ireland, so global hash rates will not be affected.
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