Proof-of-Work Ban Deleted From Crypto Regulation Draft In Europe

The regulation prohibiting proof-of-work mining might have been removed from the draft legislation targeted at the European crypto space.
Proof-of-Work Ban Deleted From Crypto Regulation Draft In Europe
Proof-of-work ban likely deleted from drafted crypto regulation in Europe.

Proof-of-work (PoW) activities are missing in the current version of the EU’s Markets in Crypto Assets (MiCA) framework that might have banned cryptocurrency mining such as Bitcoin. The plan was set to be approved by the European Parliament (EP) on the last day of February, but the vote was postponed due to concerns made by members of the crypto business.

“For the time being, a Bitcoin prohibition in the EU is off the table,” BTC Echo reported, citing the text. The contentious paragraph has been removed, according to a German crypto news outlet. Companies would not be allowed to offer services for the acquisition, custody, or trading of PoW-based crypto assets under the legislation presented by the Left, Greens, and Social Democrats.

The scheduled vote was canceled at the request of Stefan Berger, the legislation package’s rapporteur, who later confirmed BTC Echo’s claim in a tweet late Tuesday. Negotiations have also resumed, he told the publication.

Berger emphasized, “We now aim to get the MiCA through Parliament as swiftly as possible.” His remarks echo those of Christine Lagarde, the President of the European Central Bank, who last week urged the EU to adopt the regulation as soon as possible to prevent Russia from using cryptocurrencies to evade sanctions imposed in response to its military invasion of Ukraine.

“Discussions are in full swing,” Berger, a member of the Committee on Economic and Monetary Affairs, stated. After the EP passes the regulatory package, the outcome of the dialogue between the Parliament, the European Commission, and the EU member states will determine its final adoption. The executive body in Brussels will then assess how the approved proposal will be implemented in the future.

Ban On Proof-of-Work Mining

Several EU politicians and regulators have urged for an EU-wide ban on proof-of-work mining in recent months, citing the technology’s power-hungry nature.

Sweden was one of the first countries to demand such a regulation, noting bitcoin mining’s increased use of green energy at the expense of other industries’ climate neutrality aspirations.