Europe’s MiCA Crypto Rules Submitted, ECON Committee to Vote in Mid-March – Regulation Bitcoin News

The European Union’s regulatory proposal for crypto markets, MiCA, has been filed with the European Parliament. A controversial clause that would have prohibited crypto-currencies like bitcoin that depend on proof-of work mining has been removed from the latest draft of the framework.

Economic and Monetary Affairs Committee will vote on the latest MiCA Draft March 14

The EU’s Markets in Crypto Assets (MiCA) regulations have been submitted to the European Parliament’s Economic and Monetary Affairs Committee (ECON), the rapporteur for the regulatory package, Stefan Berger, announced on Twitter. He said that members of the commission will vote on legislation in March 2022.

Heute habe ich den finalen MiCA-Entwurf eingereicht. Der ECON-Ausschuss wird am 14. März 2022 hierüber abstimmen
➡️Thread #MiCA

— Stefan Berger (@DrStefanBerger) March 7, 2022

It is missing text that would prohibit companies from offering services in cryptocurrencies, such as BTC (the coin with the highest market capitalization), based upon the proof-of work mining algorithm (PoW). After generating backlash from both the community and the cryptocurrency industry, the rule was rescinded by the Left, Greens and Social Democrats.

A number of EU state regulators have called for an EU-wide ban on PoW, which consumes more energy than any other method. Sweden insisted on such a measure, citing bitcoin mining’s increasing use of renewable energy at the expense of climate neutrality goals in other sectors of the economy. The idea was also supported by German officials.

“In view of the controversial discussions surrounding the energy consumption of crypto assets, the #taxonomy could provide clarity and ensure a better information basis for consumers,” Berger noted in another tweet. The EU’s taxonomy system is designed to help direct investment towards sustainability projects.

In addition, the European Union with MiCA can establish global standards. The raporteur urged all those involved in this process to vote for the proposed draft. “Strong support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly financial sector,” Stefan Berger elaborated.

The ECON member emphasized that the proposal establishes a regulatory framework that will pioneer innovation, consumer protection, and legal certainty in the crypto space while creating “reliable supervisory structures in the area of ​​crypto assets.”

Once ECON approves the package, MiCA’s implementation will be determined in dialogue between the European Parliament, the Council of the EU, and the European Commission. Christine Lagarde, President of European Central Bank, urged the Union in February to approve regulations that would prevent Russia using cryptocurrency to avoid sanctions for its invasion of Ukraine.

Are you optimistic that the EU will quickly adopt Markets in Crypto Assets? Please let us know your thoughts in the comment section.

Lubomir Tassav

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.