EU Crypto Regulatory Framework MiCA Moves To The Next Legislative Phase Without Opposition
- MiCA has progressed to the next stage of legislation without any contest from the PoW crypto opposition.
- Berger has proposed that MiCA be linked to the EU Taxonomy for Sustainable Finance.
- The EU might be looking to outlaw anonymous crypto wallets.
Crypto enthusiasts in the EU, especially lovers of Bitcoin and Ethereum, would be pleased to hear that MiCA has moved uncontested to the next legislative phase. It is mostly safe to assume that there would be no Proof-of-Work crypto ban in the regulatory framework.
A Sigh Of Relief
Over a week ago, crypto and Bitcoin investors within Europe were on the edge of their seats. The EU was set to vote on a provision in Europe’s crypto regulatory framework that would effectively ban digital assets like Bitcoin and Ethereum in the region. However, Bitcoin scored a regulatory victory as reported by ZyCrypto, as the provision was voted against.
Despite the win, as explained by Patrick Hansen, a RegTrax contributor for the European Union, in a Twitter thread, the contention was not over yet. The losing parties who had pushed for the strongly worded provision that would have seen the ban of Bitcoin in Europe had 10 days within which they could lick their wounds and come back armed with an objection and halt the progress of the MiCA draft.
Notably, that period elapsed by midnight on the 25th. MiCA would be going into the next phase of legislation within the EU called the trilogue, as announced by Stefan Berger on Twitter. His Tweet read:
“Good news! My mandate is NOT challenged. I will now go into the trilogue negotiations with the position that there will be no PoW ban. The EU Parliament gives me tailwind & shows innovative strength.”
As a result, the document can go to the next round of consideration by the European Commission and the European Union Council. Berger also revealed that he had recommended that MiCA be linked with the EU Taxonomy for Sustainable Finance, most likely to tackle energy concerns without banning the use of the assets entirely in the region.
EU In The Throes Of Crypto Regulation
A lot of attention has been placed on the nascent market in recent times by the EU, especially since Putin invaded Ukraine as they race to bring crypto under regulations and ensure it is not used to circumvent sanctions by the Kremlin. ECB President Christine Lagarde has been one of the concerned parties calling for regulation.
Presently, there are reports that the EU is planning to outlaw anonymous crypto wallets in the region and restrict crypto users from sending crypto to perceived tax-havens. They believe that these policies would help them better monitor transactions and limit money laundering with the new technology.
Whatever the case, it is likely not to sit well with privacy advocates amongst the crypto faithful. Market participants would watch closely and hope that the EU can strike a balance in its market regulation and encourage innovation.
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