Proof Of Work Consensus Crypto Officially Not Banned In Europe
Following the development of the European Union&39s (EU) proposed regulatory framework for regulating digital currencies, known as the Markets in Crypto Assets (MiCA) framework, the use of Proof-of-Work (PoW) cryptocurrencies was recently called into question and a potential ban was being considered.
However, on March 14th, 2022, the European Parliament&39s Committee on Economic and Monetary Affairs officially voted against any possible ban on the PoW methods that underpin popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
The clause that would have mandated PoW cryptocurrencies to switch to more environmentally friendly processes did not receive the necessary votes in parliament (32 were against the ban and 24 were in favor of it).
It is also vital to distinguish Proof-of-Work from Proof-of-Stake (PoS). PoW is the consensus method powering cryptocurrencies like Bitcoin and Ethereum, which typically need a massive amount of energy to operate.
As a result of the aforementioned vote, Bitcoin&39s PoW will no longer be restricted within the EU from now on. Instead, an alternate amendment has been approved which included BTC mining in the EU&39s sustainable finance taxonomy.
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