The Markets in Crypto Assets (MiCA) regulatory package cleared another potential hurdle this week and moves on to the next stage of the EU legislative process. Proponents of controversial text banning proof-of-work (PoW) cryptocurrencies, which was recently removed from the draft, did not take the opportunity to block progress on the draft.
The EU Parliament, Commission and Council will negotiate MiCA regulations
Removed wording proposed by Members of the European Parliament (MEPs) that was intended to impose a ban on cryptocurrencies that rely on PoW mining. Mica before a recent vote. In mid-March, the Economic and Monetary Affairs Committee (ECON) passed regulations without a provision that would have effectively prohibited the offering of services for bitcoin and the like.
However, the crypto community could not greet the development with relief, as it was still possible to prevent the draft from advancing to the next stage of the legislative process: the tripartite dialogue between the European Parliament, the European Commission, the executive arm in Brussels, and the Council of the EU, the other legislative body of the Union.
The deadline for filing an objection expired at midnight on Thursday, March 24, according to the German crypto news outlet. BTC Echo noted in a report. Until then, the factions of the Greens, the Left and the Social Democrats, the supporters of the de facto ban on bitcoin, could stop the progress of MiCA and try to reintroduce the text that had provoked negative reactions from the crypto community.
Stefan Berger, the rapporteur for the legislation, confirmed on social media that MiCA will now be subject to negotiations between the three main EU institutions. Berger, who is also a member of ECON, thanked his colleagues on the committee and other supporters of his efforts. In a tweet he stated:
#Mica: Good news! My mandate is NOT questioned. I will now enter the tripartite negotiations with the position that there is no #PoW-Ban will give. The EU Parliament gives me the wind in my favor and shows innovative strength /1
— Stefan Berger (@DrStefanBerger) March 25, 2022
The MEP also noted that he had suggested connecting MiCA to the EU taxonomy for sustainable finance. with his taxonomy classification system, the EU is evaluating economic activities according to their sustainability and trying to direct investments towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council,” Berger emphasized.
Regulatory bodies 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 warned that the increasing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors.
EU institutions have been working to regulate the European crypto space in light of concerns that Russia may use cryptocurrencies to evade the sanctions imposed for their invasion of Ukraine and the crypto assets were managed in a recent agreement to extend the restrictive measures. In February, European Central Bank President Christine Lagarde urged the Union to quickly pass new crypto regulations for the same reason.
Do you think the European Union will adopt the MiCA regulations without the bitcoin ban? Tell us in the comments section below.
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