EU’s Sweeping Crypto Regulations Package One Step Closer to Ratification

Without a problematic clause limiting the use of proof-of-work, the proposed MiCA framework was approved. The European Union’s (EU) precedent-setting legal framework for crypto assets has cleared another hurdle on the road to adoption.

The committee previously decided to repeal a measure that intended to restrict the usage of cryptocurrencies that used the energy-intensive proof-of-work consensus method. The law may have effectively prohibited the use of the popular cryptocurrency Bitcoin (BTC) throughout the EU.

Rather than that, the committee voted in favour of an alternative provision that would require the European Commission to submit a “legislative proposal to include any crypto-asset mining activities that contribute significantly to positive climate change in the EU taxonomy (a classification system) for sustainable activities by 1 January 2025.”

On Monday the 14th of March, the Economic and Monetary Affairs Committee of the European Parliament voted 31-4 in support of a revised draft of the MiCA framework, with 23 abstentions.

The framework generally encompasses the issue and trade of cryptocurrencies and aims to make it simpler for crypto companies to expand throughout the EU’s 27 member states by issuing a “portable” license that is valid across borders.