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Bitcoin: MiCA vote will go ahead without provisions banning proof-of-work crypto-currencies

The MiCA vote will take place on March 14 while language that would have banned proof-of-work cryptocurrencies like Bitcoin has been removed.
BRUSSELS, BELGIUM – MARCH 02: European flags are seen outside the European Commission on March 02, 2020 in Brussels, Belgium. The UK chief negotiator David Frost has met his EU counterpart Michel Barnier to begin formal negotiations of the future relationship between the EU and UK. (Photo by Leon Neal/Getty Images)

After being postponed due to a scandal over wording equivalent to a bitcoin ban, the European Union Parliament’s Monetary Committee vote on EU legislation for crypto asset markets (MiCA) will take place on March 14.

European Union parliamentarians had proposed rules to ban cryptocurrencies based on environmentally unsustainable consensus mechanisms, such as proof of work, from January 2025. This was blatantly similar to a disguised ban on Bitcoin, causing a virulent response from the community until this latest reversal.

The news was tweeted on Monday, March 7, by Dr. Stefan Berger, the member of the European Parliament’s ECON Committee who is responsible for pushing MiCA through the parliament.

Today, I submitted the final draft of the MCA. The ECON committee will vote on this draft on March 14, 2022.”

“An independent topic on proof of work is no longer planned in MiCA”

declaration of Dr Stefan Berger

These words confirm the first answers of the MP, during the scandal caused a few weeks ago:

“It is crucial to me that the MiCA report not be interpreted as a de facto ban on bitcoin”

In his Twitter feed, Berger continues:

“My suggestion is to include crypto-assets, like all other financial products, in the realm of taxonomy […] In light of the controversial discussions around the energy consumption of crypto-assets, taxonomy could provide clarity and ensure a better information base for consumers.”

The MP also reminds us that this decision will not be final. Several different visions need to be agreed upon to become a real law.

Indeed, even after the upcoming votes in Parliament, the bill will still have to go through trialogue discussions, including with the European Commission, which drafted the original proposal, and the European Council, which adopted its own version of MiCA a few months ago.

It is important to note that there are still some elements of concern to the industry in the latest available versions of the current draft legislation. Among other things, the proposed regulation of “asset-referenced tokens,” which most know as “stablecoins,” is particularly strict.

“In order to ensure proper supervision and monitoring of public offerings of asset-linked tokens, issuers of asset-linked tokens must have a registered office in the Union”

Proposed MiCA Regulations
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