European Parliament delays crypto bill vote over POW (proof-of-work)

February 26, 2022

WhatsApp Image 2022 02 26 at 7.32.21 PM2

The parliament of the European Union is postponing a vote aimed at regulating digital currencies in between concerns over proof-of-work (POW) mining. Stefan Berger, a member European Parliament economics committee said that the government body had discontinued a vote on the Markets in Crypto Assets (MiCA) scheduled to take place on Monday. Berger said parliament must explain the issue of proof-of-work (POW) with stakeholders to assure an ethical legal framework because some may misunderstand the recommendation as a prohibition on crypto. He also said that this would turn out to be fatal if EU Parliament delivered the incorrect indication with a vote under the current situation.

The MiCA was first introduced to the European Commission in 2020 and accepted by the European Council in 2021. It tried to build a regulatory framework for the crypto assets market that aids invention and brings on the capacity of crypto assets that conserve economic vitality and safeguards investors. The force to clarify may have been provoked by reports that a revealed draft of the MiCA formulated prohibiting the use of digital currencies in the European Union over their use of energy. If this is enacted, the regulatory proposal would restore all-new national frameworks on crypto for European Union member countries with n need to improve laws one at a time, which could have potentially directed to a ban on proof-of-work mining.

Several legislators and regulators in the European Union have been summoning for a ban on proof-of-work mining as the crypto area thrives and the consequences of climate change become better apparent. A Swedish economic watchdog and the Swedish Environmental Protection Agency called for a prohibition on proof-of-work mining in November, this is a step that obtained objection from some enterprise administrators.


Have a look at this – Proof of Work vs Proof of Stake

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