By IftikharPost – March 15, 2022 at 15:30 AEST.
- European Parliament’s economic and monetary affairs committee has voted against banning proof-of-work-based assets for companies in the European Union.
- The provision could have required cryptocurrencies like bitcoin to shift to more environmentally friendly mechanisms.
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A last-minute addition to the bill was made over the weekend, which aimed to limit the use of cryptos that are powered by the energy-intensive process called proof-of-work (PoW). But it was voted down by the parliamentary committee on Monday.
According to Patrick Hansen, head of strategy at Unstoppable Finance, the committee has voted against the proposed proof-of-work (POW) ban. He explained in a series of tweets Monday:
The ECON committee of the EU Parliament just voted against the de-facto POW-ban … Big relief & political success for the bitcoin & crypto community in the EU.
Patrick Hansen, head of strategy at Unstoppable Finance
Stefan Berger, a member of the EU Parliament and rapporteur of MiCA, tweeted the success:
“First stage win at #MiCA in committee! By accepting my proposal, members have paved the way for future-oriented crypto regulation. It is now a matter of accepting the report as a whole in the final vote & sending out a strong signal for innovation.”
Stefan Berger, a member of the EU Parliament and rapporteur of MiCA
Major crypto assets like Bitcoin and Ethereum rely on PoW, a consensus mechanism underlying the digital assets that require a lot of energy to operate.
Keep Tuned for more update soon.
