The market in the Crypto Assets (MiCA) regulatory package this week overcame another potential hurdle and is moving towards the next stage of the EU legislative process. Proponents of the controversial text banning Proof of Work (PoW) cryptocurrencies, which were recently removed from the draft, did not take the opportunity to block the progress of the draft.
EU Parliament, Commission and Council negotiate MICA regulations
The term, proposed by members of the European Parliament (MEPs), which aims to ban cryptocurrencies relying on PoW mining, was dropped from the MiCA prior to a recent vote. In mid-March the Committee on Economic and Monetary Affairs (ECON) approved regulations without any provisions that would effectively prohibit the offering of bitcoin and similar services.
However, the crypto community could not welcome the development with relief as it was still possible to prevent the draft from proceeding to the next stage of the legislative process – a trilogy between the European Parliament, the European Commission, the executive branch in Brussels, and the Council of the European Union. , other legislative bodies of the Union.
German crypto news outlet BTC Echo said in a report that the deadline for which objections can be filed expired at midnight on Thursday, March 24. Until then, factions of the Greens, Left and Social Democrats, supporters of the de facto bitcoin ban, may have stalled Micah’s progress and attempted to reintroduce the text that sparked negative reactions from the crypto community.
The law’s representative, Stefan Berger, confirmed on social media that Mica would now be subject to negotiations between three major EU institutions. Berger, who is also a member of ECON, thanked his colleagues on the committee and other supporters of his efforts. In a tweet he said:
#MiCA: Gute Nachrich! I challenged the mandate to the NICHT. Ich verde nun in die Trilog-Verhandlungen gehen mit der position, das es Keenen #pow-Bain Gaben Wird. Das eu-Parlament Gibet Meer Rükenwind and Ziegt Innovation Craft / 1
— Stephen Berger (@DrStefanBerger) 25 March 2022
MEPs also stated that they had suggested linking MICA to the EU Taxonomy for Sustainable Finance. With its own taxonomic classification system, the European Union is evaluating economic activity according to its sustainability and attempting to direct investment towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council,” emphasized Berger.
Regulatory bodies and officials from several EU member states called for a union-wide ban on energy-intensive PoW crypto mining, citing environmental reasons. The group includes the bloc’s economic superpowers, Germany and Sweden, who warned that the increased use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other regions.
EU institutions are working to regulate the European crypto space, in light of concerns that Russia could use cryptocurrencies to evade sanctions imposed on its invasion of Ukraine and to expand restrictive measures. A recent agreement targeted crypto assets. In February, the President of the European Central Bank, Christine Lagarde, urged the union to quickly approve new crypto regulations aimed at the same purpose.
Do you think the EU will adopt MICA regulations without a bitcoin ban? Tell us in the comments section below.
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