Europe’s MiCA Crypto Rules Submitted, ECON Committee to Vote in Mid-March – The EU’s Markets in Crypto Assets (MiCA) regulations have been filed to the Economic and Monetary Affairs Committee (ECON) of the European Parliament, according to Stefan Berger, the regulatory package’s rapporteur. On March 14, 2022, members of the committee will vote on the legislation, he said.
A text prohibiting companies from providing services for cryptocurrencies based on the proof-of-work mining algorithm (PoW), such as BTC, the coin with the greatest market value, is missing from the submitted package.
The Left, Greens, and Social Democrats introduced the rule, however it was eventually repealed after a backlash from the crypto sector and community.
Officials and authorities from a number of EU member states have urged for a Union-wide ban on PoW mining, which consumes more energy than other technologies.
Sweden pushed for the regulation, citing bitcoin mining’s increased use of green energy at the expense of other industries’ efforts to achieve carbon neutrality. Germany’s representatives have also expressed their support for the initiative.
“In light of the contentious debates around crypto assets’ energy use, the taxonomy could bring clarity and ensure a better information base for consumers,” Berger said in another tweet. Using its taxonomy classification system, the EU is seeking to direct funding toward sustainable initiatives.
MiCA, he continued, allows the European Union to set global standards, and he asked everyone involved in the process to maintain the current plan. “The EU Parliament’s robust support for MiCA is a significant signal for a technology-neutral and innovation-friendly financial sector,” Stefan Berger stated.
The ECON member underlined that the proposal creates “stable supervisory structures in the domain of crypto assets,” as well as a legislative framework that will pioneer innovation, consumer protection, and legal certainty in the crypto space.
MiCA’s implementation will be decided in a dialogue between the European Parliament, the European Council, and the European Commission after ECON accepts the package.
Christine Lagarde, the President of the European Central Bank, asked the EU to establish legislation to prevent Russia from exploiting cryptocurrencies to dodge sanctions imposed in response to its invasion of Ukraine in February.