Why is the European Union’s MiCA bill a vote to watch?
After weeks of debate and deliberation, the European Union is ready to vote on the critical Crypto Asset Markets (MiCA) Bill. The MiCA bill has seen its fair share of ups and downs and has often been criticized for its content by market participants.
However, after changing some aspects of the bill, European Union lawmakers are all set to vote on the MiCA bill on March 14, which could impact how crypto operations are taxed. In the region. European Union lawmakers, who previously decided to postpone the vote, following a reversal on cryptos. The previous draft had reservations about crypto firms, offering services via proof-of-work (PoW) consensus.
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However, in February, European Union lawmakers unanimously decided to remove this section of the MiCA bill, which would have deemed PoW cryptos illegal, such as Bitcoin Ethereum.
Confirming the update via his Twitter account, Dr. Stefan Berger, the MP in charge of MiCA, confirmed that an independent discussion on PoW would no longer be on the table. He added that it would make sense to consider cryptos like any other financial asset in the field of taxonomy.
Cancellation of a critical paragraph of the bill
In February, the European Parliament struck down controversial paragraph 61(9c) of the bill. The bill further stipulated that by 2025, crypto assets deemed to be environmentally unsustainable would not be permitted. This resulted in mixed emotions from various sections of the crypto industry, forcing Dr. Berger to postpone the vote to a later date. In the tweet, Dr Berger further pointed out that the intention of the MiCA Bill is to ensure that the European Parliament can lead by example in setting global standards.
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On March 14, the EU can secure a critical crypto regulation that will define the new tax regime. The MiCA bill will still have to go through the dialogue protocol with the European Commission and the European Council.
Whether this will eventually become law or not remains to be seen, but it would be crucial to see how cryptos are regularized in the context of the Russian and Ukrainian crisis. Therefore, the outcome of the vote will be hotly watched by crypto enthusiasts and lawmakers around the world.
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