There has been a lot of discussion around the EU’s proposed MiCA regulations, especially the text that sought to ban proof-of-work cryptocurrencies like Bitcoin. Now the law is advancing but without these clauses.
Relief for Bitcoin in the EU
The proposed European Union (EU) Regulatory Package on Crypto Asset Markets (MiCA) has decided not to advance the controversial provision to limit the use of proof-of-work cryptocurrencies due to security concerns. energy consumption.
Before moving on to trialogue negotiations between parliament, council and commission, EU lawmakers were trying to reach a consensus in terms of better regulation of the crypto space. MiCA’s current draft does not include the provision prohibiting cryptocurrencies like bitcoin running on the proof-of-work protocol.
Stefan Berger, the German legislator leading the MiCA regulation, tweeted Friday that its proposed mandate not to include a ban on prisoners of war is unchallenged and that the EU has shown “strength of innovation”.
The deadline to challenge the warrant ended Thursday at midnight, Berger added, and the MiCA trialogue will begin next week.
Non-fungible tokens (NFT) and decentralized finance (DeFi) are the other topics discussed by the parliament. The question is whether they should be included in the MiCA package and which EU institutions should be in charge of overseeing the crypto space.
Europe – A Bitcoin Mining House
On March 14, the European Parliament said no to including explicit language to ban proof-of-work cryptocurrencies in a 30-23 vote. Those who lost needed 1/10 of the vote among MPs to veto a fast-track MiCA through trialogues to revive the proof-of-work ban.
As previously reported by CryptoPotato, Europe accounts for around 12-14% of the total BTC mining hash power, according to August 2021 figures from the University of Cambridge. Ireland and Germany take the lion’s share of this total, so global hash rates are unlikely to be affected.
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