Proof-of-Work Ban Removed from Europe’s Proposed Crypto Regulation

- Advertisement -

Proof-of-Work Ban Removed from Europe’s Proposed Crypto Regulation – A text in the draft legislation intended at regulating the European crypto ecosystem that threatened to restrict cryptocurrencies based on energy-intensive proof-of-work mining has been removed.

The adjustment comes after the crypto community voiced its displeasure with the controversial provision.

The plan was set to be approved by the European Parliament (EP) on the last day of February, but the vote was postponed due to concerns made by members of the crypto industry.

Also Read: EU Members Want to Task New AML Watchdog With Crypto Oversight

- Advertisement -

“For the time being, a Bitcoin prohibition in the EU is off the table,” BTC Echo reported, citing the document. The controversial paragraph has been removed, according to a German crypto news outlet.

Companies would not be allowed to offer services for the acquisition, custody, or trading of PoW-based crypto assets under the legislation presented by the Left, Greens, and Social Democrats.

The intended vote was canceled at the request of Stefan Berger, the legislative package’s rapporteur, who has now confirmed BTC Echo’s claim in a late Tuesday tweet. Negotiations have also resumed; he informed the publication.

Berger emphasized, “We now aim to get the MiCA through Parliament as soon as possible.” His remarks match those of Christine Lagarde, the President of the European Central Bank, who last week encouraged the EU to implement the law quickly to prevent Russia from using cryptocurrencies to dodge sanctions imposed in response to its military invasion of Ukraine.

Also Read: Private Banks Propose to Help Design Digital Currency in Mexico

“Discussions are in full swing,” Berger, a member of the Committee on Economic and Monetary Affairs, stated. After the EP passes the regulatory package, the outcome of the dialogue between the Parliament, the European Commission, and the EU member states will determine its final adoption. The executive body in Brussels will then assess how the approved proposal will be implemented in the future.

Several EU politicians and regulators have urged for an EU-wide ban on proof-of-work mining in recent months, citing the technology’s power-hungry nature. Sweden was one of the first to demand such a rule, citing bitcoin mining’s increasing use of green energy at the expense of other sectors’ climate neutrality goals.

Don't miss

Russia’s Largest Digital Asset Deal Denominated in Chinese Yuan

Russia’s Largest Digital Asset Deal Denominated in Chinese Yuan...

North Korean Lazarus Group Linked to New Cryptocurrency Hacking Scheme

North Korean Lazarus Group Linked to New Cryptocurrency Hacking...

London’s Prince Charles Cinema Set To Launch Bid To Revive Edinburgh Filmhouse

London’s Prince Charles Cinema Set To Launch Bid To...

Amber Heard Appeals For New Trial In Johnny Depp Defamation Case

Amber Heard Appeals For New Trial In Johnny Depp...

Paul Pelosi Attends Kennedy Center Honors In First Appearance Since Hammer Attack

Paul Pelosi Attends Kennedy Center Honors In First Appearance...

LEAVE A REPLY

Please enter your comment!
Please enter your name here