A portion of a planned regulation in the European Union has been reportedly cancelled which would have otherwise made it illegal for cryptocurrency services to deal in coins based on PoW (Proof-of-Work). PoW is the consensus process that both Bitcoin (BTC) and Ethereum (ETH) utilize for mining purposes as well as to protect their respective networks.
The role of MiCA
The MiCA (Markets in Cryptocurrency Assets) bill was introduced by a coalition led by Stefan Berger and was initially scheduled for a vote in the European Parliament on February 28th. However, it was postponed when many members of parliament objected to a clause about PoW. Berger verified that paragraph 61 (9c) of the bill was eliminated entirely following the influx of objections and complaints.
MiCA has the ability to greatly impact European crypto adoption. It was first suggested two years ago and would essentially force the European Central Bank to create consistent rules for crypto-asset service providers as well as issuers at the EU level. In a nutshell, it would provide a comprehensive regulatory framework for cryptocurrency assets throughout the EU, something the United States and other countries are currently still working on.
Environmental concerns or something more?
It is no secret that one of the biggest criticisms made against the crypto industry is that mining digital assets such as Bitcoin is causing irreversible damage to the ecosystem. Environment-related anxieties are also weighing heavily on Europe, whose member countries all strive to reach the Paris Agreement's climate standards. Finanspektionen, Sweden's financial regulator, had even suggested a complete ban on mining BTC and various other PoW coins last year, stating that the energy expense was simply not worth the advantages.
Nevertheless, many remain hopeful for this industry and are optimistic about its chances following the aforementioned decision by the EU to get rid of the regulatory aspect which would have adversely affected the crypto sector in all of Europe.