The ban on bitcoin in Europe will be voted on in a few hours

The European Parliament must vote on a ban on evidence-based digital currencies in the next hour. A positive vote by lawmakers on the bill could mean a ban on bitcoin in European markets.

According to Kevin Desk, in the next few hours MEPs will vote on a law that could effectively ban bitcoins. However, the result of this survey is rather unclear.

The European Parliament’s Committee on Economic and Monetary Affairs must vote on a draft framework for the digital assets market. This proposed framework, or “MiCA”, is in fact a comprehensive set of EU rules governing digital currencies.

The draft contains a new clause that seems to limit the use of digital currencies with a highly computational process known as proof of performance. However, according to people familiar with the matter, although the vote is still a potential risk, some committee members may vote against.

Kevin Desk also said yesterday that the regulations in question require all digital assets to use “EU minimum standards for environmental sustainability for their transaction validation mechanism” before issuing, offering or accepting for trading in Europe. This means that only currencies that are allowed to be placed on the market by authorized European exchange offices that use the EU-approved consensus model (proof of stocks) in their network.

For digital currencies such as bitcoin and atrium, which are already traded in the EU, the law proposes a phasing-out plan to change their consensus mechanism from proving to other less energy-intensive methods, such as proving stocks.

There are plans to move Atrium to a consensus protection mechanism, but it is unclear whether the same option is available for bitcoin. In addition, even if it were possible, part of the bitcoin community is likely to oppose changing the network mechanism.

The bill has so far met with a quick response from the digital currency community around the world.

Jeremy Aller, founder of the payment services company Circle Pay, said on Twitter:

This vote is crucial in the European Union. The fact that such a proposal has worked so far is extremely worrying, and I do not think it is possible to oppose the union’s reasons for this.

A number of MEPs have called for a ban on digital currencies with a proof-of-work mechanism, as there are concerns about high energy consumption, even if renewable energy is used in extraction. They fear that instead of the national network, which is intended for public use, renewable energy will be redirected to proven Chinese blockchain networks.

The previous version of this article proposed banning digital currencies with proof of employment in the European Union from January 2025 (December 1403). This article was removed before the revised version was included in the recent draft, following criticism from fans of the digital currency.

Stefan Berger, Member of the European Parliament responsible for overseeing the content and development of the MiCA framework, is working to reach a comprehensive agreement to limit the proof of employment.

“In an interview with Kevin Desk in February, Berger mentioned political parties discussing energy,” Berger said.

As you can imagine, the European Greens and Socialists are critical of the nature of technology to prove work and its high energy consumption, saying that bitcoin consumes more energy than the rest of the Netherlands.

At the time, Berger also said he believed the MiCA framework aimed to legislate digital currencies as an asset and that the law was not intended to address technology or energy legislation.

The draft will be sent to the European Parliament, the Council and the European Parliament for trialogue talks after the vote.

The publication Voting for the ban on bitcoin in Europe will take place in the next few hours, appeared for the first time on Arzdigital.

Leave Your Comment

Your email address will not be published.

Supportscreen tag