France-based hardware wallet maker ledger Warn people about possible EU-wide bans on crypto assets using the Proof of Work (PoW) consensus mechanism European Parliament (MEP) And oppose the movement.
“At the last moment possible, a particular party proposed a MiCA amendment. [regulation on Markets in Cryptoassets] It bans proof-of-work consensus protocols such as Bitcoin, Ethereum, and other blockchains and crypto assets popular in Europe, and issues the final result to the rest of Congress: “Bitcoin Ban. Accept or oppose the entire MiCA package, “said one of the leading players in the crypto industry.
(Ethereum, the second largest crypto asset by market capitalization, aims to move to a proof-of-stake consensus mechanism that does not require intensive energy-intensive mining, but critics are more centralized and Claims to be less secure.)
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) will vote for MiCA on Monday, March 14.
However, according to Patrick Hansen Unstoppable financeDeFi wallet developer MEP voted for two proposals, one of which “has no plans to ban.”
“Currently, it seems that very few people oppose the ban, [to be determined]”Hansen said.
As reported earlier this month, the first proposed MiCA draft was European Commission In September 2020, it was revised to remove the wording proposing a ban on PoW-based crypto assets.
However, even the ECON vote on the ban on these crypto assets will be confirmed later by the European Parliament (EP), and long and complex negotiations are expected between the EP, the European Commission, and EU member states. It may take years for MiCA to come into effect.
Also, energy-focused journalist Lorenzo Valecki said, “Basically, PoW miners respect specific emission standards, as in the automotive industry, for example,” when the “ban” is approved. I’m saying I have to do it. “
The Exposure Draft also seems to state that “small” mining operations are exempt from these standards, but according to Vallecchi, “the Commission is” small “within six months after the approval of the directive. Determine the meaning. “
“I hope the EU will not attack itself by creating a hostile environment for prisoners of war,” the experts concluded.
In either case, the ledger warns you if this prohibition is confirmed:
- “”Europe’s innovative and growing digital asset economy will disappear. Without Bitcoin and Ethereum, crypto exchanges and other crypto service providers cannot operate profitably. They are forced to close, move or block access to Europeans. The DeFi protocol, which relies on ETH, cannot legally serve Europeans. Let’s be clear. This activity will not stop, it will only move to the currently welcomed United States or Asia. “
- “”Consumer protection is undermined by the Bitcoin ban in Europe. Due to the nature of digital assets, “banned” digital assets will continue to be available in Europe but not on secure and regulated EU platforms. This raises serious consumer protection concerns as it is difficult for consumers to understand and forces them to access foreign platforms with little (or no) regulatory oversight. “
The company contacted the European crypto community to contact MEP and urged them to say:
“A complete ban on proof-of-work assets will cripple the EU market, encourage law evasion, worsen consumer protection and push the industry out of the EU. All of these will benefit the environment. No. Ask the ECON Committee to oppose the amendment. ALTA and ALTG. “
The MEP, which proposes a ban, argues that the POW mechanism is not environmentally sustainable.
“If each of us must defend a more ecological and noble society, banning prisoners of war is a simple and satirical view,” said a member of the National Assembly of the 6th constituency in Paris. Says Pierre Person. Reacted.. “The problem is not the energy consumption of Bitcoin, but the origin of this energy. It bans mining from fossil energy and encourages players to look to surplus renewable energy to improve the profitability of these means of production. It’s more appropriate to do. “
Instead of protecting EU citizens, MEP is pushing for a ban that “at the same time it makes it less competitive, President Biden has signed a law requiring the United States to fully embrace this new ecosystem,” according to Parson. increase.
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(Updated at 19:46 UTC with a comment from Lorenzo Vallecchi.)
