European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision – Regulation Bitcoin News

The Markets in Crypto Assets (MiCA) regulatory package passed another potential hurdle this week and is moving to the next stage of the EU’s legislative process. Proponents of a controversial text prohibiting proof-of-work (PoW) cryptocurrencies, which was recently dropped from the draft, did not take an opportunity to block the draft’s progress.

EU Parliament, Commission and Council to Discuss MiCA Regulations

Before a vote, the MiCA was amended to remove the wording that European Parliament members had proposed. This would have meant that cryptocurrencies which depend on PoW mining were banned. The regulations were approved by the Committee on Economic and Monetary Affairs in March without any provision which would have prohibited services to bitcoin and similar.

However, the crypto community couldn’t greet the development with relief as it was still possible to prevent the draft from progressing 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 other legislative body of the Union.

BTC Echo in Germany reported that Thursday, March 24th was the last day for an objection to be submitted. The Greens, Left, and Social Democrats factions that support the de facto Bitcoin ban can stop MiCA’s advance and try to reinstate the text, which has sparked negative reaction from the crypto community.

Stefan Berger was the legislative rapporteur and confirmed that MiCA will be under negotiation between three of the leading EU institutions. Berger, who also serves as a member on ECON’s committee, expressed gratitude to his fellow members and supporters for their efforts. He tweeted:

#MiCA: Gute Nachricht! Mein Mandat wird 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

MEP pointed out also that he suggested linking MiCA with the EU Taxonomy for Sustainable Finance. The EU’s taxonomy classification system allows it to evaluate economic activities in terms of their sustainability, and direct investment towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council,” Berger emphasized.

A number of EU members called on regulators and government officials to ban PoW cryptocurrency mining. They cited environmental concerns. 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 worked to regulate European crypto space, in view of Russia’s possible use of crypto to escape sanctions. A recent agreement to extend the restrictive measures was made to target crypto assets. Christine Lagarde (President of the European Central Bank) urged Europe to swiftly approve the new crypto regulations in February with the same motivation.

Is it possible that the European Union would adopt MiCA regulations without a bitcoin ban? Comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.