EU’ MiCA framework still includes provisions to restrict POW Cryptos but there is a catch
The latest drafted version of the MiCA framework bill still contains restrictions to use Proof-of-work blockchain-based cryptocurrencies like Bitcoin, Ethereum, etc.
The European Union is a crypto-friendly region in the world, where authorities brought fair and some unfriendly rules for the crypto Companies & community but overall people are doing trading with the crypto assets legally. Markets in Crypto Assets (MiCA) prepared its framework to impose some necessary restrictions on the crypto industry, to bring a more fair regulation-based framework.
When, in the very starting, MiCA proposed its bill, than drafted bill faced huge controversy because of its provisions to ban all the companies from doing business with those crypto assets, which are not better for environmental health and causing huge pollution. After the huge controversy, lawmakers confirmed that they are not against Bitcoin in any way.
Just a few days ago, officials of this MiCA framework confirmed that they excluded the “Proof-of-work” word from the drafted bill. After all these things, the controversial discussion has been stopped.
But now controversy again started in the crypto industry after the report of leading crypto news website Coindesk.
On 12 March, Coindesk reported that the “Proof-of-work” word is still indirectly in existence of the drafted bill of MiCA and also it includes some restrictions on the businesses to use Proof-of-work based crypto assets, which are unsustainable to the environment health.
Coindesk reviewed the bill and noted that things are still unchanged with minor changes.
“(crypto assets) shall be subject to minimum environmental sustainability standards concerning their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.”
However, the framework’s provision includes that small-scale use of Proof-of-work Consensus-based crypto assets will get a concession to operate services.
Coindesk review confirmed that provisions are less strict in the new version of the drafted bill. The stronger version of the bill was under huge support over the softer version of this bill in parliament House.
Besides the review of Coindesk on MiCA renewed drafted bill, experts claimed that the Consensus term ( whether pos or pow) will be removed and they should consider the level of pollution caused by the blockchain networks through their current data records because in the present time majority of the Proof work-based blockchain networks are still causing less pollution over advanced blockchain networks like Solana, which is known for its efficiency but causing highest pollution in the list of all blockchains.