BTC Ban: Short Term Amendments Threaten BTC Future
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In the European Parliament, the Greens, Left and Social Democrats are trying to get a BTC ban off the ground. A few days ago the relief. The problematic paragraph in the MiCA (Markets in Crypto Assets) regulatory project could be deleted, as we reported in detail. The crypto sector seemed safe for the time being.
BTC ban is up for grabs again
Last minute amendments were received yesterday that, if rewritten somewhat, would ultimately lead to a ban on BTC services. Although there is no longer any explicit mention of a proof-of-work ban, the result would be the same. The corresponding MEPs want to ban cryptocurrencies that are classified as unsustainable. Specifically, the new paragraphs state:
Crypto-assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.
New paragraph MiCA
It goes on to say:
[…] shall set up and maintain a phased rollout plan to ensure compliance with such requirements, in accordance with the conditions and criteria referred to in paragraph 3.
New paragraph MiCA
Should these amendments find a majority next Monday, this would de facto lead to the exclusion of BTC services, since BTC would logically not be able to set up such a rollout plan. The former Bitkom blockchain representative Patrick Hansen had already given an initial classification on Twitter:
MiCA: The consequences of a positive vote
The consequences of a positive vote would be devastating. A total ban on proof-of-work assets will paralyze the EU market, encourage circumvention of laws, weaken consumer protections and force the industry out of the EU – all with no environmental benefit.
It seems as if many MEPs do not know what they are actually voting for. Money laundering and tax evasion in particular would be massively favored by this, while an entire industry is forced to emigrate. A crypto exchange that cannot offer BTC trading is practically obsolete. With a market share of over 40 percent, BTC cannot be missing from any such service provider.
It doesn’t matter whether Bitpanda Bison (Stuttgart Exchange) or Coinbase with a German BaFin license: if BTC were banned, they would all have little incentive to work in the EU. After all, German crypto investors would have to switch to foreign exchanges and brokers, with all the negative consequences. The distance to the USA, Switzerland or parts of Asia such as Singapore would then be practically impossible to catch up once and for all. The result would be less state control, less tax revenue and brain drain.
What everyone can now do to save BTC in the EU
We have done everything we can to draw attention to the devastating regulatory plans. We very much welcome uniform and reasonable regulation in Europe. So we are not against regulation and against MiCA, just against a de facto BTC ban.
There are both those from the liberal and Christian Democratic camp who speak out against a BTC ban as well as the Greens, Left and Social Democrats who have submitted the amendments mentioned. If you like, you can make use of your democratic right and formulate your objections constructively.
BTC ban: ideology-driven and little fact-based
Blockchain expert Dr. Sven Hildebrandt from DLC Distributed Ledger Consulting GmbH finds clear words:
In my opinion, the discussion about a possible ban on PoW is extremely ideology-driven and not very fact-based. What is particularly depressing in the course of the whole process, however, is that precisely those who call for a ban most loudly usually have the least specialist knowledge and are also not looking for a discussion with practice. Apparently it’s not about the issue, but in some factions it’s all about clientele politics and sonorous slogans.
dr Sven Hildebrandt
Hildebrandt also points out that we must not make the same mistakes as we did with the Internet. After all, “swinging the ban club on global technologies is simply not the right way to go. Unless you want Chinese conditions,” as Hildebrandt continues.
How is it going now?
However, there is still hope that if the amendments are approved, the BTC ban will not inevitably come. Finally, there are also negotiation meetings, so-called trilogues, between the Commission, the EU Parliament and the Council of Ministers. In retrospect, the BTC prohibition passages could still be excluded.
In any case, we will stay on the ball and report on further developments.
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