European Parliament rejects proposal that would end bitcoin mining
The Committee on Economic and Monetary Affairs of the European Parliament (ECON) voted this Monday (14) against a text of the Bill “Directive on Crypto Assets Markets” that limited Bitcoin mining, that is, provided for a ban on the system, Proof of Work (PoW), used to issue new cryptocurrencies.
The provision, however, could have required cryptocurrencies like bitcoin to switch to mechanisms deemed more environmentally friendly by regulators. In short, this was dropped and an alternative amendment was passed, adding bitcoin mining to the EU’s sustainable finance taxonomy in the future.
According to information from Bitcoin Magazine, for this, the Commission must present to the European Parliament and the Council a proposal to change the legislation on the subject by January 1, 2025.
Known as Proof of Work (PoW), it is through this system that new bitcoins are issued. However, for the activity to work, it needs a lot of computational power, so a lot of electricity.
Because of this, considering the EU’s zero carbon target by 2050, the PL, which became known by the acronym MiCa, had a paragraph that dealt only with the subject. Earlier this month, Stefan Berger, president of ECON and draftsman of the directive, suppressed the text with other lawmakers and suggested that he had done what he could for the crypto sector and that the outcome would only be known today.
On the decision, parliamentarian Paris Pierre Person commented in a tweet:
“It seems that reason and common sense have prevailed. We must continue to defend the principle of technological neutrality. Europe must remain in the global competition!”.
Berger also celebrated.
“First stage win at #MiCA on committee! By accepting my proposal, the members paved the way for future-oriented cryptocurrency regulation. It is now about accepting the report as a whole in the final vote and sending a strong signal of innovation”.
Erster Etappensieg bei #MiCA im Ausschuss! Mit der Annahme meines Vorschlags haben die Mitglieder den Weg geebnet für eine zukunftsorientierte Krypto-Regulierung. Nun gilt es, den Bericht auch als Ganzes in Schlussabstimmung anzunehmen & starkes Signal für Innovation zu setzen.
— Stefan Berger (@DrStefanBerger) March 14, 2022