The European Union has rejected the Markets in Crypto Assets (MiCA) which, among others, wanted to ban Proof-of-Work (PoW) consensus-based cryptocurrency mining. After the vote, they have been given 32 votes against this rule and 24 votes in favor Of the same. This means that the standard has not been approved.
This norm hides behind the high power consumption needed for PoW consensus of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. Something that collides with the European energy policies moving towards renewables.
This was intended to make PoW-based cryptocurrency mining illegal in Europe. But upon meeting a denial, the MiCA may be amended to not address mining.
The MiCa has received votes in favor (and thus outlawing cryptocurrency mining) from the Social Democrats, the Greens, and the European Left. While in favor of the norm the popular Europeans, Renew (liberals), Identity and Democracy, and the Conservatives and Reformists have voted.
Cristina Carrascosa, a lawyer specializing in cryptocurrencies and a member of the EU Blockchain Observatory and Forum, has highlighted on her LinkedIn account:
“Rumors and speculation spread fast about Europe banning Bitcoin and mining.
Far from this being the meaning of the text, it is that the aforementioned text has not yet been found in an official source. Furthermore, today’s vote in the EP session has rejected any similar type of ban.
Europe continues on its path and will to be a crypto friendly ecosystem.”
After this refusal, the MiCA could be modified. A three-way negotiation will start between the Commission, the Parliament and the Council of the EU. Once a new text is available, it should be submitted to a new vote.
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