Thursday, September 29, 2022

European Parliament Set to Vote on MICA as Proof-of-Work Ban is Removed

Following the European Parliament’s decision to suspend the vote on its long-awaited cryptocurrency market regulation, Stefan Berger, a rapporteur in charge of the vote announced today that the Markets in Crypto-Assets Directive (MICA) is slated to be voted on by the European Parliament Committee on the 14th of March.

Stefan, Chairman of the Economic Committee had earlier paused votes on MICA that was planned for February 28th over a portion of the bill many feared would lead to the de facto ban of cryptocurrencies that use proof-of-work like Bitcoin (BTC). He also assures that the portion of the bill which caused the outcry has been deleted from the modified draft. 

Members of the Economics Committee can carry on with the voting process as the union’s fears about the anonymous nature of crypto which aids criminality and money laundering were valid and as such the crypto space needs to be regulated. Should the bill be passed, it could be a landmark for pro-regulation on crypto.

The bill which was initially formulated in September 2020 is still a hefty package with measures to further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks.

MICA is a proposed regulation in the European Union Law and it is aimed at providing legal certainty around crypto-assets featuring cryptocurrencies, stablecoins, and security tokens. It is aimed at making the financial regulatory framework innovation-friendly. 

The Proof-of-Work system allows participants to solve cryptographic puzzles which help to add new blocks to the blockchain. The puzzle-solving process is known as “mining”. As the input of each puzzle becomes larger over time, the PoW mechanism will then require a large number of computing resources which consumes a substantial amount of energy.

Lots of people get worried about the environmental hazards posed by proof-of-Work coins. This brought about the ban of miners in China Last year.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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