EU Regulator Ties Up Crypto Regulation Vote Over Proof-of-Work Ban

Key Takeaways

  • European Parliament member Stefan Berger has canceled a vote scheduled for Monday on crypto regulation.
  • The availability, referred to as the Markets in Crypto-assets proposal, apparently contained complicated language on Proof-of-Work cryptocurrencies, which have been added later.
  • These anti-Proof-of-Work provisions triggered a stir this week after making the rounds, inflicting Berger to cancel the vote.

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The European Parliament has delayed its vote on the Markets in Crypto-assets Directive that was scheduled for Feb. 28 as a result of a provision which may ban Proof-of-Work. The vote might have despatched a significant proposal for crypto rules into discussions with the Council of the European Union and the European Fee. 

Leaked Draft of Crypto Invoice Attracts Ire

A key vote on crypto rules that might have an effect on roughly a half billion individuals has been delayed in order that info on Proof-of-Work may be gathered.

In 2019, the European Parliament proposed its regulatory package deal referred to as Markets in Crypto-assets with the acknowledged function of facilitating the “potential of digital finance by way of innovation and competitors whereas mitigating the dangers.” Nevertheless, Stefan Berger, the rapporteur for the European Parliament’s Committee on Financial and Financial Affairs’ who was scheduled to vote on the Markets in Crypto-assets proposal, has referred to as off the vote due to considerations that the proposal might be “misinterpreted as a de facto Bitcoin ban.”

Berger went on to talk about passages within the draft of the invoice that might be seen as a Proof-of-Work ban, warning it “can be deadly if the #EU Parliament despatched the mistaken sign with a vote beneath these circumstances.” The EU Parliament member famous the “pressing” have to “create clear info” on Proof-of-Work in additional discussions earlier than the vote. 

He concluded

“I’ll make one other try with all stakeholders to achieve a compromise that gives crypto belongings with a correct authorized framework however doesn’t problem Proof-of-Work.”

It seems that, whereas the Markets in Crypto-assets proposal states the significance of fostering innovation so Europe is perhaps “match for the digital age,” a later addition to the invoice added the crucial bit about Proof-of-Work that Berger and others expressed concern over. These drafts with Proof-of-Work bans made the rounds this week and drew ire. 

The European Parliament decides upon European Union laws alongside the Council of the European Union. The legislative physique additionally performs a key function within the membership of the European Fee, which implements EU insurance policies, equivalent to by electing its President. 

There have been rumblings—and outright assist—for a Proof-of-Work mining ban within the European Union as a result of its environmental footprint. For instance, the vice-chair of the European Securities and Markets Authority, Erik Thedéen, referred to as for a Proof-of-Work mining ban final month, favoring as an alternative Proof-of-Stake.

Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different cryptocurrencies. 

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