EU is set to vote on MiCA draft today
On March 14, the European Parliament will vote on a regulatory framework known as the Markets in Crypto-Assets Directive (MiCA). The framework’s proposal aimed at banning the proof-of-work cryptocurrencies and Bitcoin within the European Union, starting in January 2025.
According to CoinDesk, the provision in question requires all crypto assets to be subject to the EU’s “minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.”
The MiCA framework’s rapporteur, Stefan Berger, stated that the bill was not intended to establish the Bitcoin ban. The bill’s draconian provision has been removed.
The phrasing of the current proof-of-work prohibition has been softened down, but the effect remains “essentially the same,” notes Patrick Hansen, head of growth and strategy at DeFi startup Unstoppable Finance.
Following parliament’s decision on the draft, it will move on to a trilogue, which is a formal round of negotiations between the European Commission, Council, and Parliament.
The proposal has been widely criticized by the crypto community. Many individuals claimed that there are many industries that emit more carbon than Bitcoin and PoW crypto.
Michael Saylor, chief executive officer of business intelligence firm MicroStrategy, has tweeted about this MiCA framework, described it as “a trillion-dollar mistake.”
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