The European Union’s regulatory proposal for crypto markets, MiCA, has been filed with the European Parliament. The latest version of the draft framework does not feature a controversial provision that could have effectively prohibited cryptocurrencies like bitcoin that rely on proof-of-work mining.
Economic and Monetary Affairs Committee to Vote on Latest MiCA Draft on March 14
The EU’s Markets in Crypto Assets (MiCA) regulations have been submitted to the European Parliament’s Economic and Monetary Affairs Committee (ECON), the rapporteur for the regulatory package, Stefan Berger, announced on Twitter. Members of the committee will vote on the legislation on March 14, 2022, he revealed.
Heute habe ich den finalen MiCA-Entwurf eingereicht. Der ECON-Ausschuss wird am 14. März 2022 hierüber abstimmen
➡️ Thread #MiCA
— Stefan Berger (@DrStefanBerger) March 7, 2022
The filed package is missing a text banning companies from providing services for cryptocurrencies based on the proof-of-work mining algorithm (PoW) such as BTC, the coin with the largest market capitalization. The rule was proposed by the factions of the Left, Greens, and Social Democrats, but later removed after sparking a backlash from the crypto industry and community.
Officials and regulators from several EU member states have called for a Union-wide ban on PoW mining which requires more energy than other methods. Sweden insisted on such a measure, citing bitcoin mining’s increasing use of renewable energy at the expense of climate neutrality goals in other sectors of the economy. German representatives have also supported the idea.
“In view of the controversial discussions surrounding the energy consumption of crypto assets, the #taxonomy could provide clarity and ensure a better information basis for consumers,” Berger noted in another tweet. With its taxonomy classification system, the EU is trying to direct investments towards sustainable projects.
The rapporteur further noted that with MiCA, the European Union can set global standards and called on those involved in the process to back the submitted draft. “Strong support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly financial sector,” Stefan Berger elaborated.
The ECON member emphasized that the proposal establishes a regulatory framework that will pioneer innovation, consumer protection, and legal certainty in the crypto space while creating “reliable supervisory structures in the area of crypto assets.”
Once ECON approves the package, MiCA’s implementation will be determined in dialogue between the European Parliament, the Council of the EU, and the European Commission. In February, President of the European Central Bank Christine Lagarde urged the Union to approve the regulations to prevent Russia from using cryptocurrencies to evade sanctions imposed over its invasion of Ukraine.
Do you expect the EU to quickly adopt the Markets in Crypto Assets framework? Let us know in the comments section below.