EU Lawmakers Scrap Controversial Legislation Outlawing PoW Digital Assets

Updated:

European Union (EU) lawmakers have backtracked on a controversial paragraph from recent legislation that would have outlawed all proof-of-work (PoW) operated cryptocurrencies, like Bitcoin and Ethereum, from Europe.

The Markets in Crypto-Assets (MiCA) framework, championed by Economic and Monetary Affairs (ECON) rapporteur, Stefan Berger, was initially set for deliberation on February 28. However, following a thunderous opposition to the bill, considering that it could be easily misinterpreted as an outright ban on Bitcoin and other cryptos, the vote got postponed.

That said, new reports from a German media outlet revealed that the passage had been scrapped. Meanwhile, the vote for the highly-anticipated market regulatory act for the crypto industry has yet to be rescheduled.

Making some clarifications on the development, Berger tweeted:

“The paragraph is no longer in the text. The report has yet to be voted on in committee. In this vote, we will see where the majorities lie. The decision has not yet been made #MiCA.”

The controversial passage in the bill mandated that cryptocurrencies that failed to align with environmentally friendly consensus mechanisms, like PoS, should not be given operational room within the eurozone. The passage also added that all assets have to scale minimum environmental stability standards.

EU Authorities to Debate Amended MiCA Bill

That said, if the modified version attracts the required number of votes to pass, it will move up to trilogue debates, including the European Commission and Council, along with the Parliament.

Nonetheless, global regulators continue to brainstorm ways to regulate the environmental impact of PoW related digital assets.

In Europe, crypto mining debates dominated the crypto space in 2021. These debates have led several industry players to embrace eco-friendly PoS networks, with others avoiding Bitcoin and other PoW digital assets.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.