The decision is postponed in the face of the provision that would limit use of PoW cryptocurrencies such as Bitcoin. A timeline for the vote was not provided.
European Union lawmakers have delayed a key vote on the regulatory framework for digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies. Initially scheduled for February 28th The vote would decide the bloc’s long-awaited cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. regulation, a package originally introduced in 2020 known under the acronym MiCA, (reglamento sobre los mercados de criptoactivos).
The vote was intended for the EU parliament to send the proposal with potential amendments for discussion with members of the Council of the European Union and the European Commission. However, these plans have now been postponed indefinitely.
The discussion is postponed after a new draft of the proposal was released, which includes a provision to limit cryptocurrency mining based on proof-of-work (PoW) mechanisms . The chairman of the Economy Committee and rapporteur in charge of that vote, Stefan Berger, asked for more time to clarify these provisions. The parliamentarian reported on Twitter this Friday:
The EU Parliament’s vote on #MiCA will be cancelled at my request and will not take place on 28 February. As rapporteur, it is crucial to me that the MiCA report is not misinterpreted as a de facto ban on Bitcoin.
The vote of the EU Parliament on #MiCA will be cancelled at my request and will not take place on 28 February. As rapporteur, it is central to me that the MiCA report is not seen as a de facto #Bitcoin -ban is misinterpreted @btcecho 1/4
– Stefan Berger (@DrStefanBerger)February 25, 2022
EU to discuss PoW provision in depth
As reported by DiarioBitcoin This week, a new MiCA draft was released that included a provision that seeks to restrict the use of digital currencies that rely on intensive energy use. Specifically, the regulation referred to cryptocurrencies based on PoW networks, such as the case of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y Ethereum a decentralized open-source blockchain with smart contracts functionality. .
According to CoinDesk which first reported the news, this provision (if passed as is) would have an impact on cryptocurrency companies, which would be limited in providing PoW cryptocurrency services. The regulation would come into effect in January 2025, according to previous reports.
A source close refers to the closing price; similar to the same term used in stock trading. to parliament toldThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. on Friday that the vote has been delayed mainly in the face of discussion of late-stage changes that could be interpreted as bans on PoW networks. According to the media, the media coverage and overwhelming response on Twitter caused right-wing members of parliament to withdraw their support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for the amendments.
“ The debate in MiCA points out that some passages in the draft report can be misinterpreted and interpreted as a ban on POW. It would be fatal if the EU Parliament were to send out the wrong signal signals are a call to action to either buy or sell an asset. with a vote in these circumstances. “, said Berger in another tweet .
The parliamentarian added that he saw the need to resume talks and negotiations with political groups on the issue and present clear facts on the proof of work. He also pledged to sit down with “ all stakeholders to reach a compromise that provides an appropriate legal framework for crypto-assets, but does not call into question the PoW “.
Concerns about the environmental impact of Bitcoin
Berger did not specify when the vote will take place. The reports also did not provide a tentative timeline for the decision on the expected European crypto-regulation.
It is worth noting that the controversial provision of the regulatory framework cites growing concerns about the environmental impact of asset mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. as Bitcoin A topic that has been in vogue among regulators in countries around the world in recent months.
European Union lawmakers, as well as politicians from various members of the bloc, including Sweden, Germany and Spain, have been lobbying for a ban on proof-of-work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. mining for energy concerns from at least November 2021. European Securities and Markets Authority (ESMA) vice-president Erik Thedéen, also se sumó este año a la petición .
- European Union expects new AML anti-money-laundering laws, regulations, and procedures that aim to end the unlawful income practices. watchdog to oversee cryptocurrencies
- Italy formalizes anti-money laundering requirements for crypto companies
- French presidential candidate, Éric Zemmour, presents four crypto proposals
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash