This week, the Markets in Crypto Assets (MiCA) proposal aimed at regulating cryptocurrencies was able to overcome another major hurdle. It appears that the regulatory package is now moving to the next stage of the legislative process in the European Union (EU). The draft recently saw a controversial text that prohibits cryptocurrencies poweredby the proof-of-work (PoW) mining removed from it. However, the proponents for the text did not try to block the progress of the draft. Members of the European Parliament (MEPs) had used wording for imposing a ban on all cryptocurrencies that use the PoW mining method.
In a recent vote, all of the text had been removed and the regulations had received the approval of the Committee on Economic and Monetary Affairs (ECON) in mid-March. This did not include the provision that would have prohibited the offering of cryptocurrencies and services related to them using the specified mining method, including bitcoin. Nonetheless, this development was still not a relief for the crypto community because there is still a possibility that the draft may not reach the next stage in the legislative process. This will be the triloguebetween the European Commission, which is the executive arm based in Brussels, the European Parliament and the other legislative body of the EU, which is known as the Council of the EU.
The deadline for filing an objection was scheduled to pass on Thursday, March 24 at midnight. Only until then did the factions of the Left and Social Democrats, the Greens and the supporters of the bitcoin ban, could create a problem when it comes to taking MiCA forward. In fact, they could have even reintroduced the wording that had resulted in negative reactions from the crypto industry as a whole. The man heading the legislation, Stefan Berger had confirmed that the law would now be discussed by the three leading institutions of the European Union.
Also a part of ECON, Berger thanked all who had supported the regulations, along with members of the committee. He went on to highlight that he had suggested they connect the legislation to the EU Taxony for Sunstainable Finance. The European Union is using its taxonomy classification system to evaluate economic activities to assess their sustainability and aims at directing investments towards projects that are more sustainable. Berger said that he was optimistic about the proposal receiving the approval of the Council and the Commission.
Officials and regulatory bodies from a number of the EU-member states had suggested a ban on the PoW mining method throughout the EU and cited environmental reasons for it. This includes Germany, the economic powerhouse of the bloc, and Sweden, which had warned that climate neutrality goals in other industries could be at risk because of the high use of renewable energy used for minting bitcoin. EU institutions have doubled up their efforts for regulating the crypto space in Europe because of concerns that Russia may try to use crypto for evading the sanctions that have been imposed against it for invading Ukraine.