EU’s draft crypto law still “says no” to Proof-of-Work ban ahead of negotiations

EU’s draft crypto law still “says no” to Proof-of-Work ban ahead of negotiations

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2022-03-29 11:07:22

The EU’s cryptocurrency law proposal is moving to the next stage of discussion without a controversial provision to restrict the use of coins related to Proof-of-Work (PoW).

EU’s draft crypto law still says no to Proof-of-Work ban ahead of negotiations

Specifically, in early March, EU legislators unanimously removed a controversial provision banning Proof-of-Work coins that primarily target Bitcoin and Ethereum in the Bill. “Markets in the Crypto Asset Industry” (MiCA). Essentially, the MiCA is the key bill, creating a common regulatory framework for cryptocurrency adoption in Europe.

However, just a week later, the proposed ban suddenly returned to the bill, making the investor community bewildered, especially in the context that the EU is expanding the scope of sanctions against Russia and Belarus. even in the field of cryptocurrencies. Fortunately, the mentioned prohibition provisions were ultimately defeated in a Commission secret vote on 14 March.

However, this is only seen as a temporary legal victory for PoW coins as the content of the MiCA will be discussed, edited and supplemented by the European Parliament, Council and Commission.

At the present time, before moving on to the next stage of the legislative process through tripartite negotiations between the European Parliament, the Council and the Commission, EU lawmakers have been trying to reach consensus. favorable in the process of regulating the crypto space better than in MiCA. The good news is that MiCA’s current draft does not include a provision banning Proof-of-Work coins.

Stefan Berger, a German lawmaker who works directly with the MiCA, announced on March 27 that his task of proposing to oppose the POW ban had not been hit with any obstacles from the EU Parliament. Besides, Berger also added that the tripartite meeting on MiCA will be ready to take place as soon as next week.

Beyond the scope of PoW, EU officials are actively debating several other areas of the industry including NFT and DeFi within the MiCA regulatory framework, as well as which EU bodies should be given oversight powers over cryptocurrency market.

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