- The newly-revised crypto bill by the EU now includes clauses over proof-of-work cryptocurrencies.
- Members of the crypto community are countering the new bill, tagging it as discriminatory.
The newly-proposed legislation by the European Union (EU) parliament includes some clauses against proof-of-work cryptocurrencies. The new clauses were added as the EU plans to vote on the bill later today, the 14th of March. The bill, Markets in Crypto-Assets Directive, or MiCA, was supposed to be voted on last month. However, the vote was rescheduled from the end of last month and will now expectedly take place this month. Before the rescheduling, there was a lot of backlash from the crypto community concerning the EU bill. Many believed it that would outlaw digital assets like Bitcoin regarding energy use concerns.
The reviewed version of the proposed crypto bill by the EU states:
Crypto-assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.
As it stands, the revised version may still have a significant impact on the mining and circulation of top crypto assets.
Furthermore, the bill mentions that the EU will be in charge of setting the standards of minimum environmental sustainability “for consensus mechanisms used for validating crypto assets transactions.” In addition, the parliament will choose a date or the dates that kick start the compliance with the minimum environmental sustainability. This will also include a phase-in period. There is a need for a phased rollout plan to ensure compliance as the crypto assets are already in circulation ahead of the EU’s vote.
Criticisms against the revised crypto bill by EU parliament
Even though the EU has attempted to review the bill on proof-of-work crypto, the crypto industry does not seem to welcome the newly-proposed legislation. A French crypto hardware wallet manufacturer Ledger said:
Individuals and organizations should be free to choose the technology most appropriate to their needs. Policymakers should neither impose nor discriminate in favor of a particular technology. This is deeply concerning and would have serious consequences for Europe.
Apart from the EU, other jurisdictions are also working on introducing crypto legislation. President Joe Biden has signed an executive order on cryptocurrencies in the US. For the first time, Dubai issued a set of laws on crypto assets. The government also implemented a new regulator for the crypto industry. Last week, Sheikh Mohammed Bin Rashid announced the Dubai Virtual Assets Regulatory Authority under the Dubai Virtual Asset Regulation Law. He said the regulator would be in charge of all types of cryptocurrencies and non-fungible tokens (NFTs).
Bin Rashid said, “the future belongs to whoever designs it,” and Dubai has decided to participate in the rapidly growing sector. The Dubai Virtual Asset Regulatory Authority will offer different virtual asset services. The Authority will work together with the central bank of the UAE and the Securities and Commodities Authority.