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European Parliament postpones crypto bill vote over proof-of-work

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Concerns over proof-of-work mining have caused the European Union’s parliament to postpone a vote on a framework to regulate cryptocurrencies.

Stefan Berger, a member of the European Parliament’s economy committee, said on Friday that a vote on the Markets in Crypto Assets, or MiCA, a framework that slated for Monday had been cancelled. Berger added that in order to establish a suitable legal framework, lawmakers needed to address “the subject of proof-of-work” in negotiations with stakeholders. Adding that some would perceive the idea as a crypto prohibition.

“According to the discussion concerning MiCA, certain paragraphs of the draught report can be misunderstood and regarded as a [proof-of-work] ban,” Berger added. “If the EU Parliament sends the wrong signal with a vote in these circumstances, it will be devastating.”

Regulatory framework for the crypto-assets industry

On the other hand, in September 2020, the European Commission was first introduced to the MiCA. Thus, In November 2021, the European Council adopted it. “To build a regulatory framework for the crypto-asset industry,” according to the mission statement. This encourages innovation while also utilising the crypto-assets potential. In a manner that protects investors and maintains financial stability”. Berger said he cancelled the vote as the rapporteur — the person in charge of reporting on the proceedings. Without saying when he would reschedule it.

The demand for clarity possibily sparked by allegations that a leaked draught of the MiCA advocated banning the use of cryptos in the EU due to their energy consumption. Thus, if passed, the regulation plan will replace all current national crypto frameworks for EU member countries. Eliminating the need to revise legislation one at a time, which may have led to a ban on proof-of-work mining.

The crypto sector grows and the effects of climate change become more obvious. Hence, many MPs and authorities in the EU have called for a prohibition on proof-of-work mining. In November, the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency proposed a ban on proof-of-work mining, which faced opposition from several sector leaders.

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