MiCA law that could ban Bitcoin voted on in European Parliament
MiCA law that could ban Bitcoin voted on in European Parliament
Regulation

MiCA law that could ban Bitcoin voted on in European Parliament

By Vincenzo Cacioppoli - 14 Mar 2022

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The cryptocurrency bill, Markets in Crypto Assets (MiCA), presented by a coalition led by Stefan Berger, which was due to be voted on Monday 28 February and has been postponed by a fortnight, reaches the European Parliament.

The MiCA bill to be voted on in the European Parliament

The bill would be linked to regulating cryptocurrencies that use the Proof of Work system, such as Bitcoin and Ethereum, because of their excessive energy consumption.

This fact, as explained by the first signatory of the law, the German Cdu MEP, economist Stefan Berger, could suggest that the two most famous and important cryptocurrencies could be banned.

In announcing the postponed vote on 28 February, through a tweet on his profile, he said that: 

“individual passages in the draft report can be misinterpreted and understood as a ban on the two cryptocurrencies”.

At the same time, what seems clear is that both the Green and Socialist parties would be in favour of a law, which in some way limits the energy consumption of Bitcoin and Ethereum. The two parties, which together make up almost the majority of the parliament, would also be ready to vote for a ban on the two cryptocurrencies if a suitable solution is not found, as admitted by the German MEP himself.

“The Greens and Socialists, as you can imagine, are criticizing the proof-of-work concept and criticizing the energy use, saying that bitcoin needs more energy than the Netherlands”,

Berger said in an interview with CoinDesk in February.

Bitcoin cryptocurrency
The EU could ban “unsustainable” cryptocurrencies

A ban on “unsustainable” cryptocurrencies

The problem would be linked to a paragraph in the law that would establish a ban by 2025 on creating, selling or trading crypto assets within the EU if they use “environmentally unsustainable consensus mechanisms”.

This has clearly triggered a reaction from the crypto community, which is concerned that if the bill is passed, it could ban many cryptocurrencies within the EU within a few years.

The crypto world waits

The CEO of Ledger, a French company that makes cryptocurrency wallets, Pascal Gautier, was one of the first to raise the alarm via Twitter about the risks to cryptocurrencies from the upcoming vote in the European Parliament.

However, according to Patrick Hansen, Head of Strategy & Growth at Unstoppable Finance, developer of a DeFi portfolio, MEPs will vote on two suggestions and one of them “does not include a ban”.

According to Hansen, the scope of a vote that would be much less restrictive than some think is being exaggerated, not least because the majority of parliament would not be so granitic on a hypothetical future ban: 

“There seems to be a very slim majority against the ban at the moment, but that is to be defined”.

 

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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