EU Committee Rejects Proposal to Ban PoW Networks Such as Bitcoin

Fast take:

  • The EU’s ECON committee has voted towards a proposal to ban proof-of-work crypto networks within the area
  • 32 members of the committee voted towards the proposal with 24 in favor
  • The proposal was meant to focus on proof-of-work networks resembling Bitcoin’s that didn’t meet environmental sustainability requirements
  • Crypto mining will more than likely be added to the EU sustainable finance taxonomy

The Committee on Financial and Financial Affairs (ECON) of the European Parliament has simply voted against a invoice that proposed a ban on the use and mining of all Proof-of-Work crypto networks inside the area.

The ECON committee met earlier right now and voted (34 towards, 24 in favor) to maintain out a provision of a draft of the proposed Markets in Crypto Property (MiCA) framework that will have restricted using energy-intensive proof-of-work networks resembling Bitcoin’s, in all 27 member states of the European Union.

According to the proposal, all cryptocurrencies used and mined within the European Union must adhere to strict ‘minimal environmental sustainability requirements and arrange and keep a phased rollout plan to make sure compliance.’

Legislators within the EU had raised considerations that proof-of-work networks have been ‘power intensive’ and wanted to be regulated.

Information of the proposal failing to cross the voting spherical of the EU parliamentary committee is a large victory for crypto customers and miners because it gives some readability on the way in which ahead for digital property within the area.

Because of this, Bitcoin and cryptocurrencies is likely to be added to the EU taxonomy for sustainable actions. This state of affairs was explored by the Head of Technique and Enterprise Improvement at Unstoppable DeFi, Patrick Hansen, who shared his insights by way of the following statement.

The EU taxonomy is a classification system, establishing an inventory of environmentally (un)sustainable financial actions. It gives corporations, buyers & policymakers with definitions for which financial actions might be thought of sustainable…

If POW was to be deemed unsustainable underneath the taxonomy (very doubtless), mining corporations would have a a lot more durable time getting cash from European buyers, corporations, and governments that must allocate increasingly of their capital in direction of inexperienced goals.

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