MiCA Crypto Rules In Europe Submitted, ECON Committee Sets To Vote On Proposal By Mid-March

The European Union regulatory framework towards crypto markets has been filed by European Parliament. This regulation does not include the prohibition of proof-of-work mining that is peculiar to Bitcoin.

Economic And Monetary Affairs Committee To Vote On MiCA Proposal By March 14

MiCA regulations, which are the EU’s Markets in Crypto Assets have been filed to the Economic and Monetary Affairs Committee (ECON) of the European Parliament, according to Stefan Berger, the regulatory package’s rapporteur. On March 14, 2022, members of the committee will vote on the law, he said.

A clause prohibiting enterprises from providing services for cryptocurrencies based on the proof-of-work mining algorithm (PoW), such as BTC, the coin with the greatest market value, is missing from the submitted package. The Left, Greens, and Social Democrats introduced the rule, however it was eventually repealed after an outcry from the crypto sector and community.

PoW mining, which uses more energy than other technologies, has been asked for a Union-wide ban by officials and authorities from numerous EU member states.

Sweden pressed on such a move, noting bitcoin mining’s increased usage of green energy at the expense of other sectors of the economy’s climate neutrality aspirations. Representatives from Germany have also shown support for the plan.

“In light of the contentious debates around crypto assets’ energy use, the #taxonomy could bring clarity and ensure a better information base for consumers,” Berger said in another tweet. The EU is attempting to guide financing toward sustainable initiatives using its taxonomy classification system.

The rapporteur went on to say that MiCA allows the European Union to set global standards, and he urged everyone involved in the process to support the current proposal. Stefan Berger said, “Powerful support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly banking sector.”

The ECON member underlined that the proposal creates “stable supervisory structures in the domain of crypto assets,” as well as a legislative framework that will pioneer innovation, consumer protection, and legal certainty in the crypto space.

MiCA’s implementation will be decided in a conversation between the European Parliament, the European Council, and the European Commission after ECON accepts the package. Christine Lagarde, the President of the European Central Bank, asked the EU to establish legislation to prevent Russia from exploiting cryptocurrencies to dodge sanctions imposed in response to its invasion of Ukraine in February.