A proposed rule that could have banned the popular cryptocurrency Bitcoin across the European Union (EU) has been canceled.
- The European parliament’s economic and monetary affairs committee voted to retain the provision out of draft provisions of Markets in Crypto Assets (MiCA) legal framework, the EU’s regulatory guidelines for regulating digital assets.
- The provision was seeking to restrict the use of cryptocurrencies driven by an energy-intensive computing process referred to as proof-of-work across the EU’s 27 member states.
- The vote on the provision in contention was a close call, and a small majority helped to defeat it. The proposal required all cryptos to be close to the EU’s minimum environmental sustainability standards in line with the consensus mechanism.
For popular proof-of-work cryptos, such as Bitcoin and Ether, the rule was proposing a phase-out plan to shift their consensus process from proof-of-work to other approaches that use lower energy, like proof-of-stake.
BTCUSD up +2.86%