- Bitcoin Proof-of-Work (PoW) will no longer be restricted in the European Union.
- On Monday, the EU’s economic committee voted to remove a section regarding a de facto ban on bitcoin mining on the continent.
- An alternative amendment has been adopted adding bitcoin mining to the taxonomy of EU sustainable finance.
According to numerous reports, the European Union (EU) has abandoned its plans to impose a de facto ban on bitcoin mining and related activities, which could allegedly harm the region’s efforts to promote sustainable technologies.
The proposed de facto ban on the Proof-of-Work (PoW) consensus mechanism was part of a major bill in the EU, the Crypto Asset Markets Act (MiCA), introduced in 2020 to tighten regulation of bitcoin and cryptocurrencies. creating a more detailed and streamlined regulatory framework on the continent.
“It seems that reason and common sense have prevailed,” – Paris MP Pierre Person. tweeted. “We must continue to uphold the principle of technological neutrality. Europe must remain in global competition!”
The EU Committee on Economic and Monetary Affairs (ECON) voted against the ban on Monday, passing a new amendment that adds cryptocurrency mining to the EU’s sustainable finance taxonomy.
“By 1 January 2025, the Commission shall submit to the European Parliament and the Council, as the case may be, a legislative proposal to amend Regulation (EU) 2020/852 in accordance with Article 10 of that Regulation with a view to including in the EU taxonomy of sustainable finance any activity for the mining of crypto assets, which makes a significant contribution to climate change mitigation and adaptation”, sources.
While the mining provision has been removed from MiCA’s remit, a wide range of cryptocurrency regulation remains at the core of the rules. The MiCA legislation also includes transparency and disclosure requirements for the issuance of cryptocurrencies, authorization and supervision of related service providers, and consumer protection rules.