European Union legislators have removed the provision banning bitcoins and other PoW-based crypto assets from MiCA.
MEP Stefan Berger, Rapporteur on Economic and Monetary Issues for the Cryptocurrency Market Structure Bill (MiCA), informed on Twitter that EU legislators have removed a clause banning cryptocurrencies based on the Proof-of-Work (PoW) algorithm.
“The paragraph is no longer in the text. The report has not yet been voted on by the committee. But in the voting, we saw that the majority was against it. The decision on the MiCA itself has not yet been made,” the deputy said on Twitter.
The deleted paragraph 61(9c) stated that cryptocurrencies “cannot be created, traded or transferred in the region of the European Union unless they follow environmentally sustainable consensus mechanisms.” Paragraph 61(9c) required all assets to meet minimum environmental sustainability standards.
If the current version of the draft law receives the required number of votes, it will be submitted for debate with the participation of representatives of the European Commission and the European Council.
If the MiCA bill retains a clause banning cryptocurrencies based on the PoW algorithm, all cryptocurrencies mined using this algorithm and any operations with it would become illegal in the EU. Initially, the discussion of the MiCA bill was scheduled for February 28.
The draft bill on the regulation of cryptocurrencies is very slowly being coordinated with interested departments. So far, only two points have been agreed upon. Recently, the President of the European Central Bank, Christine Lagarde, said that the adoption of MiCA needs to be accelerated, as a regulatory framework is needed to stop illegal activities with cryptocurrencies. In February, the Governor of the Hungarian National Bank, György Matolcsy, called for a ban on the mining and trading of cryptocurrencies due to the “danger of criminal use and the creation of fraudulent pyramids.” Earlier, German politician Sven Giegold demanded a law that would set a limit on the amount of electricity consumed by bitcoin miners.
Source: Bits
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