Bitcoin is safe, at least in the European Union where a proposed rule that could have effectively banned the popular cryptocurrencies Bitcoin and Litecoin has been rejected by the European Union Parliament.
The Economic and Monetary Affairs (ECON) voted to approve the Markets in Crypto Assets Regulation (MiCA), which will implement regulatory alignment for the crypto industry across the EU. The proposal also contained a provision (added to the draft last week) that sought to limit across all 27 EU member states the use of cryptocurrencies powered by an energy-intensive computing process called proof-of-work, or PoW. Crypto advocates across the globe reacted furiously to the proposal, but the EU did not ban PoW tokens, voting 31 to 23 with four abstentions.
The European Union lawmakers voted for uniform laws concerning crypto-assets, including consumer protections and safeguards against market manipulations and financial crime. As a means of reducing the carbon footprint of crypto assets, the European Union has asked that crypto-asset mining be included in the EU taxonomy (a classification system) by 2025.
The move shows that the EU does not want a blanket ban on crypto, but it has taken steps towards regulations, with an eye on the climate impact. Legislative action has taken place just days after the executive crypto order signed by President Biden, which also highlighted the use of crypto-innovation in the financial sector and consumer protection.
The next step will be a trialogue between the European Commission, Council, and Parliament on the Markets in Crypto Assets Regulation (MiCA). There will be some interesting developments to watch, such as whether or not the European Union sets some new crypto regulations or waits for other countries to do so first.