EU votes against a de-facto ban on Bitcoin’s POW consensus method in MiCA draft

The ECON committee of the European Union voted against a de-facto prohibition connected cryptocurrencies that trust connected the impervious of enactment statement protocol, similar Bitcoin, that was included successful the latest draft of the MiCA, oregon Markets successful Crypto-assets Regulation, report.

Erster Etappensieg bei #MiCA im Ausschuss! Mit der Annahme meines Vorschlags haben dice Mitglieder den Weg geebnet für eine zukunftsorientierte Krypto-Regulierung. Nun gilt es, den Bericht auch als Ganzes successful Schlussabstimmung anzunehmen & starkes Signal für Innovation zu setzen.

— Stefan Berger (@DrStefanBerger) March 14, 2022

A bulk of 32 parliamentarians voted against the prohibition and chose to enactment an alternate amendment — to bring cryptoassets nether sustainability-related taxonomy similar different fiscal products — submitted by MEP Stefan Berger, who is serving arsenic the Rapporteur connected the report. The amendment fundamentally removes the judgement and addressing of POW from the MiCa regulation.

Meanwhile, 24 parliamentarians voted successful favour of the ban, nether which the EU could fundamentally artifact exchanges from listing, arsenic good arsenic companies from providing services in, cryptocurrencies that bash not conscionable its “environmental sustainability criteria.”

Why is specified a prohibition included?

Energy Consumption of Bitcoin (2018 – 2022)

Proof of work-based cryptocurrencies requires mining to validate transactions connected the chain. Mining is fundamentally a analyzable occupation that tin lone beryllium solved utilizing a monolithic magnitude of computing power, which successful crook needs monolithic amounts of real-world vigor to function. In Bitcoin’s case, these problems get harder and harder to lick implicit clip and necessitate much power, particularly with higher levels of adoption.

Some parliamentarians judge this is negatively affecting the bloc’s advancement toward gathering its clime goals. Bitcoin mining’s planetary c emissions person been increasing astatine a dependable complaint since its inception and are present equivalent to those of the Czech Republic, with a planetary c footprint of 0.19%.

Next Steps

The ECON committee’s ballot connected the study is lone the archetypal measurement toward officially implementing crypto-related regulation.

“The EU Parliament has paved the mode for innovation-friendly crypto regularisation that tin acceptable standards worldwide. The process is not implicit yet; Steps inactive prevarication up of us.”

Berger said successful a tweet aft voting was concluded. He elaborated that the committee’s support of the last draught means it tin present proceed to interinstitutional negotiations, which impact a “trilogue” betwixt the Parliament, the European Council, and the European Commission.

Regulation tin lone travel into unit if it successfully passes done the trilogue. Additionally, MEPs who are successful favour of the prohibition inactive person an enactment to veto the study and bring it backmost to the plenary of the Parliament.

6/ Any chances near for the POW-ban?

The groups that mislaid the ballot person 1 past option. They could veto a fast-track process of MiCA done the trilogues & bring the treatment to the plenary of the Parliament. They request 1/10 of the votes of the EP to bash so, which they have.

— Patrick Hansen (@paddi_hansen) March 14, 2022

If the study is taken backmost to the plenary it volition apt origin much delays successful regulating the European crypto industry. Additionally, adjacent if the study passes done to the trilogue signifier it is inactive uncertain however the national volition yet modulate mining and impervious of work.