Bitcoin NewsCryptocurrency News

EU Votes Against Banning PoW Crypto Tokens In MiCA Bill

The European Union’s Economic Committee on Monday voted against closely-watched legislation that sought to ban proof-of-work (PoW) tokens in a proposed bill on crypto regulation in the bloc.

Citing sources in the Economic Committee (ECON), Patrick Hansen of Unstoppable Finance said the ECON committee had voted in a 32-24 ratio against a proposal in the Markets in Crypto Assets (MiCA) bill that sought to ban PoW tokens such as Bitcoin and Ethereum.

MiCA rapporteur Stefan Berger also confirmed Hansen’s report, calling the vote a first-stage win for MiCA.

By accepting my proposal, members have paved the way for future-oriented crypto regulation. It is now a matter of accepting the report as a whole in the final vote & sending out a strong signal for innovation.

-Berger said in a tweet

Now, an amendment which seeks to categorize crypto as a sustainable financial investment, will be considered. While the vote is not the final hurdle faced by MiCA before its passing, it comes as a source of relief for traders fearing a crypto crackdown in the EU.

The environmental impact of PoW mining will also be considered by a different governmental body.

PoW ban widely condemned

The ECON was initially set to vote on MiCA in February. But the vote was postponed after heavy backlash from the crypto community over the PoW ban.

While Berger had assured the public that the PoW discussion would be dropped from MiCA, it was added back into a proposed draft ahead of the vote on Monday. The environmental impact of PoW mining is the main point of contention over the bill, given the high energy cost of crypto mining.

But these concerns have been rendered moot by crypto miners switching to renewable/carbon neutral energy sources. Advances in chipmaking also seek to reduce the energy cost of mining.

The EU’s lenient stand on crypto mirrors a similarly positive tone struck by U.S. President Joe Biden last week, where he signed an executive order for developing crypto technology in the country.

EU lawmakers have attempted to fast-track crypto regulation, citing potential misuse by entities facing economic sanctions. An anti-money laundering act that incorporates crypto is also in the works.

Bitcoin and Ethereum prices rose slightly after the news, indicating a positive reaction from the market.

 

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn’t trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns.
You can reach him at [email protected]

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button