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EU to vote on major cryptocurrency regulation next week, might lift ban on proof-of-work tokens

The European Union (EU) will vote next week on a major cryptocurrency regulation, with a widely criticised restriction on proof-of-work tokens being dropped.

Stefan Berger, a member of Parliament, tweeted that the Economic and Monetary Affairs Committee (ECON) will vote on the measure on March 14. The proposal, dubbed “Markets in Crypto Assets,” aims to spell out the legislative framework that would allow crypto assets to be recognised under European law.

Berger, the bill’s commissioner, proposed that crypto assets be recognised as an investment and regulated by the EU’s taxonomy system, just like all other financial goods. He also stated that a separate discussion on proof-of-work in MiCA is no longer envisaged. The EU may create worldwide standards using MiCA. As a result, everyone engaged is being asked to endorse the presented draft and vote for MiCA. The EU Parliament’s overwhelming support for MiCA is a powerful signal for a technology-neutral and innovation-friendly banking industry.

 

The measure was originally scheduled to be voted on by ECON on February 28. Berger, though, had postponed the vote, expressing worries about a possible ban on proof-of-work tokens owing to their high energy needs. The enormous energy footprint of cryptocurrency has been a source of contention for EU authorities in MiCA negotiations.

As a commissioner, it is critical that the MiCA report not be misconstrued as a de facto. MiCA was launched in 2020 as part of a larger digital finance reform in the EU, and it was accepted by the European Council in 2021. Even if it receives a majority vote next week, the plan must still be reviewed by the European Council.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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