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European Union will no longer ban BTC

2 min read

 

The European Union (EU) has backed off on its controversial plan to ban the energy-intensive consensus algorithm used by BTC in mining, Proof of Work (PoW).

A few weeks ago, it was proposed to include in the regulatory package called “Markets in Crypto Assets (MiCA)” a rule to try to limit PoW in the 27 EU member states. In other words, the idea was to ban BTC mining throughout the European Union.

However, according to a report published by the German news agency BTC-ECHO, the rule has been removed.

Idea is not to ban BTC, says member of the European Parliament

First proposed by the European Commission in September 2020, MiCA is legislation that proposes regulations on the use of cryptocurrencies.

The initial version of the law said that, from 2025, cryptocurrencies created and admitted to the EU “should not be based on or rely on environmentally unsustainable consensus mechanisms”. In addition, the law says that these mechanisms must “meet minimum standards of environmental sustainability”.

Thus, this approach would enforce a Europe-wide ban on cryptocurrencies that rely on PoW. BTC, which uses more than 170 terawatt hours (TW/h) of energy per year, would naturally fall under this rule.

According to Stefan Berger, Member of the European Parliament, the text has, in fact, been removed:

“The paragraph is no longer in the text. The report has not yet been voted on in committee. In this vote, we will see where the majorities are. The decision has not yet been made.”

Additionally, Berger told The Block that the next vote is expected to take place between mid-March and early April. If passed, the law will undergo further voting and debate before it goes into effect.

Berger highlighted on his Twitter account that, as a rapporteur, it is crucial for him that the report is not “misinterpreted as a ban on BTC”.

“In this context, I see the urgent need to resume talks and negotiations with parliamentary groups on this matter and to create clear facts on the PoW issue,” he wrote.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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