The European Parliament’s Economic and Monetary Affairs Committee has received the EU’s Markets in Crypto Assets legislation (ECON). Committee will vote on the Latest MiCA Draft on March 14. No prohibition on organizations offering services for cryptocurrencies that use the Proof of Work (PoW) algorithm, such as Bitcoin (BTC), were included in the submitted package. This proposal was initially suggested by the Left, Greens and Social Democrats, when the crypto business and community protested.
PoW mining, which uses more energy than other mining technologies, has been urged for a ban by EU officials and authorities. Because of Bitcoin mining’s rising use of renewable energy and its impact on the country’s climate neutrality objectives, Sweden insisted on this move. There is also help from German authorities.
A taxonomy might give clarity in light of the heated debates around the energy use of crypto assets, Berger said in another tweet. He hopes the EU’s taxonomy categorization system would help it focus its funding efforts on environmentally friendly initiatives.
The rapporteur emphasized that the EU can establish global norms through MiCA and urged all participants in the process to support the presented proposal. This backing for MiCA is an important signal from the European Parliament to the banking industry that it is open to new technologies, Stefan Berger said.
The rapporteur emphasized that the EU can establish global norms through MiCA and urged all participants in the process to support the presented proposal. According to Stefan Berger, the EU Parliament’s backing for MiCA is an integral signal to the financial industry, now open to new technologies and innovation.
The ECON member noted that the plan creates “stable supervisory mechanisms in the domain of crypto-assets” while pioneering innovation, consumer protection, and legal clarity in the crypto arena.
The European Parliament, the Council of the EU, and the European Commission will work together to implement MiCA after ECON accepts the package. According to Christine Lagarde, President of the European Central Bank, Russia has been exploiting cryptocurrency to escape sanctions over its invasion of Ukraine. She asked the EU to enact legislation to stop this practice.