As per a report issued by German news outlet BTC-ECHO, the European Union (EU) has reversed its hotly debated plan to ban the energy-intensive proof-of-work consensus algorithm.
The proposal of the Markets in Crypto-Assets (MiCA) framework recently received an amendment barring companies from dealing with Bitcoin. Starting in 2025, it would have prohibited the usage of the ecologically damaging cryptocurrency. The Left, Greens, and Social Democrats first campaigned for the passage to be passed during the negotiations. The report stated,
“In particular, they [the crypto service providers, editor’s note] may not facilitate the purchase or trading of such crypto assets and may not offer custody services for such crypto assets”.
However, the report sparked a barrage of international retaliation from the Bitcoin community. For the time being, a Bitcoin prohibition in the EU is off the table. BTC-ECHO has a fresh version of the MiCA consensus proposal from the European Parliament, in which the contentious section 61 (9c) has been fully removed. On request, the deputy office of Stefan Berger (CDU), head of the competent committee for economics and currency (ECON), verified the cancellation.
After receiving widespread criticism, Stefan Berger, who is also the MiCA’s originator, took to Twitter to emphasize that the bill was not intended to constitute a de facto ban on the world’s largest cryptocurrency.On 25 February 2022, a high-stakes vote on a broad bitcoin legislative structure was postponed.
Further discussions about Bitcoin regulation
The draft that was originally supposed to be discussed on Monday, 28 February 2022, was however suspended. Nevertheless, no policy decision date has been set in the EU Parliament on the MiCA proposal for the legislation of Bitcoin (BTC) and other cryptocurrencies.
Furthermore, Berger’s MP office wrote that one wants to organize a corresponding schedule as soon as possible. Following the vote, the EU Commission, Parliament, and member states will hold a trialogue. The Commission then assesses how well the Parliament’s draught has been implemented.
In light of recent events, Christine Lagarde, the head of the European Central Bank (ECB), has urged for a quick implementation of crypto legislation in Europe. She expressed concerns about probable sanctions evasion by Russia utilizing Bitcoin and other cryptocurrencies during a news conference.
