The European Parliament has delayed a vote on the Markets in Crypto Assets Directive (MiCA) because of fears that it might be “misinterpreted as a de facto Bitcoin ban” over questions surrounding the business’s power calls for.
MiCA—a much-anticipated market regulatory act concentrating on the crypto business—was initially slated for a vote on February 28, 2022. Nonetheless, the chairman of the Economics Committee, Stefan Berger, introduced the cancellation of the vote on Twitter.
The principal cause for this was late-stage adjustments to the long run standing of proof-of-work (PoW) blockchains like Bitcoin and Ethereum. Some reportedly interpreted these adjustments as a possible ban on these blockchains.
Die Abstimmung des EU-Parlaments zu #MiCA wird auf meine Forderung hin abgesetzt und nicht am 28. Februar stattfinden. Als Berichterstatter ist es für mich zentral, dass der MiCA-Bericht nicht als de-facto #Bitcoin-Verbot missinterpretiert wird @btcecho 1/4
Berger tweeted that discussions round MiCA had indicated that “particular person passages of the draft report may be misinterpreted & understood as a POW ban.” He added that it might be “deadly” if the EU Parliament “sent the improper sign with a vote beneath these circumstances.”
Europe and crypto mining
This isn’t the primary time Europe has wrestled with the environmental impression of proof-of-work cryptocurrency mining.
Final 12 months, Sweden’s monetary providers regulator, Finanspektionen, referred to as for a ban on power intensive mining.
In reality, the regulator went as far as to say proof-of-work cryptocurrency mining was a risk to Sweden’s skill to fulfill their Paris Settlement obligations.
“Sweden wants the renewable power focused by crypto belongings by crypto asset producers for the local weather transition of our important providers, and elevated use by miners threatens our skill to fulfill the Paris Settlement,” the regulator mentioned on the time.
“Power-intensive mining of crypto belongings ought to due to this fact be prohibited.” This declare—which got here sizzling off the heels of final 12 months’s COP26 convention in Scotland—was additionally shared by the Swedish Environmental Safety Company.
What’s extra, the European Securities and Markets Authority also called for a ban on proof-of-work mining in January.
Erik Thedeen, vice chair of ESMA (and director basic of Finansinspektionen) advised the Monetary Instances that Bitcoin mining had turn into a “nationwide concern” in Sweden.
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