EU amends bill banning PoW cryptocurrencies after controversy

Several European regulations have been revised to remove language that proposed a ban on mining-based cryptocurrencies.

The European Union previously backed its controversial plan to ban the power-hungry PoW consensus algorithm.

The original version of the law states that from 2025 onwards, cryptocurrencies created and recognized in the EU “must not be based on or rely on environmentally unsustainable consensus mechanisms”. It also states that such mechanisms “should meet at least environmental sustainability standards.”

After setbacks, Stefan Berger, the lawmaker who drafted the MiCA, clarified that it is not a de facto ban on the largest cryptocurrency. A vote on the expanded regulatory framework for cryptocurrencies has been postponed to February 25.

According to German politician Stefan Berger, the provision that could paralyze the crypto industry in the EU has now been dropped.

“The disputed part is no longer in the text. The report still needs to be voted on in committee. After the vote, it is decided which side the majority prefers. A decision hasn’t been made yet.”

It is still unclear when exactly the EU Parliament will vote on the latest version of the MiCA draft.

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