A new law has been proposed in the EU and it may impose a ban on Bitcoin use or maybe it can be ban on Bitcoin miners because of the inefficient nature of Proof-of-work consensus, which is the oldest model of blockchain transactions.
The European Union is a big region in the world, where 27 countries follow similar kinds of rules to regulate the crypto sector. In the present time Markets in Crypto Assets (MiCA) is working as a leading organization to design & implement a newly designed crypto regulation framework, to keep innovations alive & keep crypto-related scams away.
On 18 October, Bloomberg reported that the EU became the latest continent to take steps to push the use of those crypto assets which are based on efficient models like Proof-of-stake.
The newly drafted bill by the EU lawmakers aimed to encourage the use of those cryptocurrencies which are environment health friendly and consume less amount of energy to perform crypto transactions.
This proposed bill also aimed to make the state members ready to survive in the winter season without any need for gas supply from Russia, which is under financial & trade sanctions by the majority of the western countries including the EU, UK & US.
“Just as their use has grown significantly, the energy consumption of cryptocurrencies has increased. In harnessing the use of cryptocurrencies and other blockchain technologies in energy markets and trading, care must be taken to use only the most energy-efficient versions of the technology,” the draft reads.
Proof-of-work crypto ban
Initially in 2021 lawmakers proposed a bill to ban Proof-of-work consensus-based Cryptocurrencies, which was a hint that the EU was likely to impose a ban on Bitcoin.
Later significant criticism against the proposed bill forced the lawmakers to change the Proof-of-Work-based crypto assets ban provisions.