There has been a lot of debate about the EU’s proposed MiCA rules, particularly the provision aimed at outlawing proof-of-work (PoW) currencies like Bitcoin. The legislation is progressing despite the fact that these provisions were removed.
Provisions restricting Bitcoin is not approved by EU
The European Union’s proposed Markets in Crypto Assets (MiCA) regulatory package has scrapped a contentious provision that sought to regulate the use of proof-of-work (PoW) cryptocurrencies over energy consumption concerns.
The EU lawmakers were attempting to reach a consensus on better regulating the crypto sector before moving on to the trilogue negotiations between the parliament, council, and commission. The provision for outlawing Bitcoin utilizing a proof-of-work (PoW) protocol is not present in the current draft of MiCA.
Stefan Berger, the German lawmaker leading the MiCA regulation has posted a tweet saying:
“Good news! My mandate is NOT challenged. I will now go into the trilogue negotiations with the position that there will be no #PoW ban. The EU Parliament shows innovative strength.”
#MiCA: Gute Nachricht! Mein Mandat wird NICHT gechallenged. Ich werde nun in die Trilog-Verhandlungen gehen mit der Position, dass es keinen #PoW-Ban geben wird. Das EU-Parlament gibt mir Rückenwind & zeigt Innovationskraft /1
— Stefan Berger (@DrStefanBerger) March 25, 2022
The parliament also addressed other topics including non-fungible tokens (NFTs) and decentralized finance (DeFi). The debate centers on whether they should be included in the MiCA framework, as well as which EU organizations should be in charge of regulating the crypto industry.
Bitcoin has managed to break the $47,000 barrier for the first time since January, at the time of writing, BTC is valued at $46,971.