European Union’s MiCA Proposal Moves to Trialogue Stage Without Bitcoin Ban Provision – Bitcoin Regulation News
The Crypto Asset Markets (MiCA) regulatory package cleared another potential hurdle this week and is moving to the next stage of the EU legislative process. Proponents of a controversial text banning proof-of-work (PoW) cryptocurrencies, which was recently removed from the project, did not take the opportunity to block the project’s progress.
EU Parliament, Commission and Council to negotiate MiCA regulations
Wording proposed by Members of the European Parliament (MEPs) that sought to ban cryptocurrencies based on PoW mining was removed from MiCA ahead of a recent vote. In mid-March, the Economic and Monetary Affairs Committee (ECON) approved the settlement without a provision that would have effectively banned the offering of services for bitcoin and the like.
However, the crypto community could not welcome the development with relief because it was still possible to prevent the project from moving to the next stage of the legislative process – the trilogue between the European Parliament, the European Commission, the executive arm in Brussels, and the Council of the EU, the Union’s other legislative body.
The time limit within which an objection could be filed expired at midnight on Thursday, March 24, German news outlet BTC Echo noted in a report. By then, factions of the Greens, Left and Social Democrats, supporters of the de facto ban on bitcoin, could halt the advance of the MiCA and try to reintroduce the text which had drawn negative reactions from the part of the crypto community.
Stefan Berger, the rapporteur for legislation, confirmed on social media that the MiCA will now be subject to negotiations between the three main EU institutions. Berger, who is also an ECON member, thanked his committee colleagues and other supporters for his efforts. In a tweet he said:
#Mica: Gute Nachricht! Mein Mandate is NICHT gechallenged. Ich werde nun in die Trilog-Verhandlungen gehen mit der Position, dass es keinen #PoW-Ban geben wird. Das EU-Parlament gibt mir Rückenwind & zeigt Innovationskraft /1
— Stefan Berger (@DrStefanBerger) March 25, 2022
The MEP also pointed out that he had suggested connecting MiCA to the European taxonomy for sustainable finance. With its taxonomic classification system, the EU assesses economic activities according to their sustainability and tries to direct investments towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council”, stressed Berger.
Regulators and officials in several EU member states have called for a union-wide ban on energy-intensive PoW crypto mining, citing environmental reasons. The group includes the bloc’s economic powerhouse Germany and Sweden, which have warned that the growing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors.
EU institutions have scrambled to regulate the European crypto space in light of fears that Russia could use cryptocurrencies to evade sanctions imposed for its invasion of Ukraine and crypto assets have been targeted in a recent agreement to extend the restrictive measures. In February, European Central Bank President Christine Lagarde urged the Union to quickly approve new crypto regulations with the same motive.
Do you think the European Union will pass the MiCA regulation without the bitcoin ban? Tell us in the comments section below.
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