E.U. legislators vote against ban on Bitcoin’s proof-of-work

E.U. legislator’s decision comes as a huge relief to the crypto industry

Key Takeaways

E.U. legislators passed an alternative amendment on PoW.
Reason and common sense prevailed, lawmaker says.

LAGOS (CoinChapter.com) — After outcry and uproar from the cryptocurrency community, the European Union (E.U.) Parliament on Monday voted against banning proof-of-work-based assets in Europe.

The E.U. legislator’s decision comes as a huge relief to the crypto industry as a provision targeting proof-of-work-based digital assets was sneaked into the final draft of the Markets in Crypto Assets (MiCA) bill. Notably, several E.U. parliamentarians have been pushing to ban PoW cryptos in favor of more sustainable energy.

However, the controversial aspect of the proposed MiCA bill did not scale through reading on the floor. Instead, 32 E.U. legislators voted against the amendment, and 24 parliamentarians favored the bill.

Patrick Hansen, head of growth and strategy at DeFi startup Unstoppable Finance, disclosed the new development through his Twitter handle. He noted that mainly members of the Green fraction and Progressive Alliance of Socialists and Democrats supported the amendment.

Additionally, it is worth noting that if the bill had scale through PoW-based assets, will have had to switch the proof-of-stake mechanism. At the same time, assets that can’t change will have been phased out of the European Union.

E.U. Legislators Passed Alternative Amendment On PoW

Meanwhile, an adequate provision of the proposed bill was passed by the E.U. legislators. Before it is signed into law, the bill would now head to other E.U. institutions, namely the European Commission, council, and parliament.

Also, to reduce the cryptos’ carbon footprint, E.U. legislators have asked the European Commission to include crypto-assets mining in its taxonomy for sustainable activities by 2025.

Through his Twitter handle, Stefan Berger, a member of the European Parliament from Germany, expressed delight with the result. He said:

“By adopting the MiCA report, the European Parliament has paved the way for an innovation-friendly crypto-regulation that can set standards worldwide.”

Additionally, the MiCA draft seeks to establish regulation around crypto assets by creating a licensing regime in the E.U and streamlining a uniform set of rules and regulations for member states.

Those rules include transparency and disclosure requirements for the issuance of digital assets. It also includes the authorization and supervision of crypto-asset service providers, consumer protection rules, and measures to prevent market abuse.

Seems Reason And Common Sense Prevailed ―Lawmaker

Pierre Person, a Member of the National Assembly of France, applauded the E.U. legislators for their decision. He had earlier condemned the final draft of the MiCA bill, noting that it would negatively affect the development of companies in Europe.

The lawmaker in a tweet noted that the proposed bill would further boost transparency in Europe.

“It seems that reason and common sense prevailed. We must continue to defend the principle of technological neutrality. […] Europe must remain in the global competition!” he said.

Similarly, Michael Saylor, CEO of Microstrategy, supported E.U. legislators’ decision. He noted that “support for #bitcoin is growing around the world.”