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Saturday, September 24, 2022

Parliament Of Europe Votes Against PoW Ban

This Monday, the committee of the Parliament of Europe known as the Economic and Monetary Affairs gave a unanimous decision where the members agreed to vote against the ban of PoW. The entire Crypto market and industry are relieved by this decision as the market analysts warned many people about an impending threat due to regulatory measures. 

Parliament Decision Provided Huge Relief To The Crypto Industry

MiCa is defined as a managerial framework that has 126 articles and all the other details on the process of implementation which will be conducted by institutions of the member state and the EU. The European Commission introduced the draft in 2020 which was actually a part of the Digital Finance Strategy. 

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MiCa deals with the status of all the leading stablecoins and currencies and the working of exchange and mining platforms. However, there are some exceptions like central bank-issued digital currencies security tokens, NFTs, DeFi, and many more. 

The entire session that was held In the Parliament on Monday was to figure out the correct version of the draft. One draft gave an indication that the draft could easily outlaw operations with the help of cryptocurrencies which depends on the protocol of PoW. This sentence would need providers of currency to present the detailed plan which would require standards of environmental sustainability. 

Decentralized systems such as BTC and others cannot submit such details due to the absence of a central operator that was already existing and a decision-maker who can be either collective or single. This was the reason why the earlier draft was amended and finally, the deadlock was removed. 

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The modern MiCa version which is running presently past the institutions of the EU does not have any ban (implicated or direct) on the mining of PoW. The activity of Crypto mining will still be regarded as ‘unsustainable’ and this tag would not allow it to have European investors from Government, and companies. In the future, MiCa will be considered by the European Commission, Council of the European Union, and the Parliament of Europe.

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