The intermediate interpretation of the draft of legislation regulatory framework persisted in the ECON committee’s voting of the European parliament. On Monday, the European Parliament members on the ECON Committee of financial services voted against the interpretation of crypto industries assets, which banned the (PoW) proof-of-work based cryptocurrencies within the European Union. This (PoW) crypto ban provides comfort to the crypto industry and the agents of the crypto industry had already alerted them of the risks of the legislative and regulatory framework.
MiCA is a legislative and regulatory framework for the crypto industry that helps crypto assets to maintain financial stability. In September 2020, the European Commission (EC) accepted the digital currency that transformed the European economy in future.
The new regulatory framework includes new regulation called (MiCA) Markets in Crypto Assets. MiCA (Markets in Crypto Assets) helps to create distributed ledger technology (DLT) also protects the investors and crypto assets in European Union. MiCA Markets in Crypto Assets also includes various subjects of cryptocurrency and stablecoins, knowledge about the operation of mining platforms like digital currency issued by central banks CBDCs (Central Bank Digital Currency) or Bitcoin, NFTs, nonfungible tokens and decentralized finance (DeFi).
The leading conspiracy of Monday’s European parliamentary voting session lies between two kinds of interpretations. And the cryptocurrencies depend on the protocols of proof-of-Work (PoW). The first interpretation includes language which can restrict the operations with cryptocurrencies. The second interpretation is a troubling sequence that requires currency providers to submit a plan for observance with environmental sustainability criteria.
In the decentralized system, Bitcoin (BTC) and other cryptocurrencies cannot be delivered such regulations because there is no current central operator, individual or joint decision-maker. Due to the problem of no existing decision-maker, the interpretation of the European Parliament updated and removed the regulatory draw.
The European Parliament ECON Committee of Economics and Monetary Affairs member Stefan Berger confirmed earlier that the intricate interpretation of language did not assume in the final draft. The ECON Committee of the EU in which 32 members voted against Proof-of-Work (PoW) ban interpretation and only 24 members cast their votes in favor.And the last, mostly minority members consisted of the Green Fraction and the progressive affiliation of Socialists and Democrats. The new sensible interpretation of Markets in Crypto Assets (MiCA) doesn’t contain a ban on Proof-of-Work (PoW) mining. Now this sensible interpretation of MiCA will continue its journey with the European Union organizations. It demands the European Commission, the chief executive of the EU introduces a legislative recommendation including this point of view that it includes any crypto-asset mining activities in the EU’s finance.
Before January 2025, Crypto mining will be classified as an unsustainable financial activity, so banning the asset and investment of European companies and governments. And yet the implementation could change the circumstances of crypto in Europe, and still, the complete ban is far away.
The next step for Markets in Crypto Assets (MiCA) will be considered triple reviews by the European Parliament, the European Commission and the European Union committee.