EU’s Amended Crypto Bill Adds Bitcoin-Banning Measures Again

The European Union has added some clauses around proof-of-work cryptocurrencies on its proposed legislation ahead of its lawmakers and is about to vote on the bill on March 14, The Block reported.

Dubbed Markets in Crypto-Assets Directive, or MiCA, the bill was originally scheduled to be voted on at the end of last month. But, it faced heavy criticism from the cryptocurrency industry as it would outlaw cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term like Bitcoin over concerns of energy use.

Though lawmakers have stripped the original provisions around proof-of-work cryptocurrencies, the latest amended version might still have a massive impact on the mining and circulation of some of the popular cryptocurrencies.

Anti-Crypto Laws?

“Crypto-assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union,” the revised version of the proposed bill states.

The European Union will be responsible for setting the standards of minimum environmental sustainability “for consensus mechanisms used for validating crypto-assets transactions.” It will further decide on “the date or the dates from which the requirement to comply with the minimum environmental sustainability standards takes effect, including a phase-in period.”

The crypto assets which are already in circulation in the 27-country bloc before the date to be decided by the EU would need a phased rollout plan for ensuring compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term.

However, the crypto industry is still not welcoming the proposed legislation. Many believe that it is discriminating in terms of technology.

“Individuals and organizations should be free to choose the technology most appropriate to their needs,” said Ledger, a French crypto hardware wallet manufacturer. “Policymakers should neither impose nor discriminate in favor of a particular technology. This is deeply concerning and would have serious consequences for Europe.”

Meanwhile, other jurisdictions are focused on bringing crypto legislations now. The US President, Joe Biden recently signed an executive order on crypto assets, while Dubai adopts its first set of laws around digital assets and has enacted a new regulator for the industry.