Connect with us

Regulation

European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision – Regulation Bitcoin News

Published

on

European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision


The Markets in Crypto Assets (MiCA) regulatory package passed another potential hurdle this week and is moving to the next stage of the EU’s legislative process. Proponents of a controversial text prohibiting proof-of-work (PoW) cryptocurrencies, which was recently dropped from the draft, did not take an opportunity to block the draft’s progress.

EU Parliament, Commission and Council to Negotiate Over MiCA Regulations

Wording proposed by members of the European Parliament (MEPs) which aimed to impose a ban on cryptocurrencies relying on PoW mining was removed from MiCA before a recent vote. In mid-March the Committee on Economic and Monetary Affairs (ECON) approved the regulations without a provision that would have effectively prohibited the offering of services for bitcoin and the like.

However, the crypto community couldn’t greet the development with relief as it was still possible to prevent the draft from progressing to the next stage of the legislative process – the trilogue between the European Parliament, the European Commission, the executive arm in Brussels, and the Council of the EU, the other legislative body of the Union.

The deadline by which an objection could be filed expired at midnight on Thursday, March 24, the German crypto news outlet BTC Echo noted in a report. Until then, the factions of the Greens, Left and Social Democrats, the supporters of the de facto bitcoin ban, could halt the advance of MiCA and attempt to reintroduce the text which had sparked negative reactions from the crypto community.

Stefan Berger, the rapporteur for the legislation, confirmed on social media that MiCA will now be subjected to negotiations between the three leading EU institutions. Berger who is also a member of ECON, thanked his colleagues at the committee and other supporters of his efforts. In a tweet he stated:

The MEP also pointed out that he had suggested connecting MiCA to the EU Taxonomy for Sustainable Finance. With its taxonomy classification system, the EU is evaluating economic activities according to their sustainability and trying to direct investments towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council,” Berger emphasized.

Regulatory bodies and officials from several EU member states called for a Union-wide ban on the energy-intensive PoW crypto mining, citing environmental reasons. The group includes the bloc’s economic powerhouse, Germany, and Sweden which warned that the increasing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors.

EU institutions have been working to regulate the European crypto space in the light of concerns that Russia may use cryptocurrencies to evade sanctions imposed over its invasion of Ukraine and crypto assets were targeted in a recent agreement to expand the restrictive measures. In February, President of the European Central Bank Christine Lagarde urged the Union to quickly approve the new crypto regulations with the same motive.

Tags in this story
ban, Bitcoin, Bitcoin ban, Council of EU, Crypto, crypto regulations, Cryptocurrencies, Cryptocurrency, ECON, EU, european commission, European Parliament, European Union, MiCA, packages, proposal, Regulation, Regulations

Do you think the European Union will adopt the MiCA regulations without the bitcoin ban? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Regulation

Castles Made of Sand Dollars: SBF, FTX, and other Three Letter Agents – Bitcoin Magazine

Published

on

Castles Made of Sand Dollars: SBF, FTX, and other Three Letter Agents - Bitcoin Magazine



The story of Bitcoin has certainly had its fair share of nefarious characters, criminal activity, bad haircuts and worse wardrobes, and yet our anti-hero du jour has seemed to outdo them all. Sam Bankman-Fried, better known by the three letter acronym SBF, burst onto the scene at the peak of the 2017 bubble, founding Alameda Research that September, just four years after graduating from an internship into a full-time position at one of the world’s largest market makers, Jane Street Capital.

SBF is the son of Stanford Law professor and founder of left-wing super PAC Mind The Gap, Barbara Fried, and Stanford professor Joseph Bankman, an expert on tax shelter laws and government regulation. At the start of 2018, SBF had struck digital gold while taking advantage of the arbitrage opportunity presenting itself between a higher demand for bitcoin in the Asian market, colloquially known as the “kimchi premium”. By the end of the year, and after amassing a considerable fortune from this high-volume bitcoin/dollar spread, he officially moved to Hong Kong, formally founding the derivatives exchange FTX in the following spring.





Source link

Continue Reading

Regulation

Kazakhstan Continues Bitcoin Mining Regulation – Bitcoin Magazine

Published

on

Kazakhstan Continues Bitcoin Mining Regulation - Bitcoin Magazine



Kazakhstan is moving forward with regulation that will further stifle its bitcoin mining industry.

The country’s federal parliamentary body has completed secondary approval of a bill “On Digital Assets in the Republic of Kazakhstan.” With a third approval, the legislation will introduce new licensing requirements for bitcoin miners based on their facility ownership and operational structure. It would also require that miners purchase their electricity from the energy provider Korem at market rates.

Previously, specific reporting and tax requirements were implemented, including registration of names, locations and quarterly reports to the government. These occurred as a result of the major influx of mining amidst energy shortages and protests, all while bitcoin miners fled China as a response to the government’s banning of bitcoin.

Kazakhstan’s close proximity to China and previously highly favorable energy access led to the large amounts of hash rate migrating to the country. Afterwards, Kazakhstan went as far as seizing up to $200 million in mining equipment who did not comply with regulation, and the country continues to try and absorb the benefits of the influx in bitcoin mining using legislation like this most recently approved bill.

Bitcoin Magazine previously reported on regulation in Kazakhstan, citing a report from the Russian media outlet Tass. In the report, Ekaterina Smyshlyaeva, a member of the Committee on Economic Reform and Regional Development of the Majilis (Kazakhstan’s federal parliamentary body) detailed the government’s intentions, describing how, “Kazakhstan was used as a raw material appendage of the blockchain industry. [Through] bills, we oblige miners to license in Kazakhstan, that is, to create legal entities and become full-fledged subjects of taxation.” 



Source link

Continue Reading

Regulation

Paraguay Fails To Pass Bitcoin Mining Bill – Bitcoin Magazine

Published

on

Paraguay’s Bitcoin Bill Passes the Senate



  • The Paraguay legislature did not pass a bill that would have regulated cryptocurrency mining in the country.
  • The bill, originally passed in July of 2022, was subsequently vetoed by President Mario Abdo Benítez in August, which sent it back to the legislature.
  • If passed, the bill would have limited outsized charges levied against bitcoin miners for their energy usage.

According to a Coindesk report, “The industry has found itself in a fight with the local grid operator provider, Ande, and some members of the legislature who claim that the grid’s infrastructure cannot handle the excess load and that the industry doesn’t greatly benefit the local economy and society.”

Ande had requested that the Paraguayan government raise electricity tariffs by as much as 60% over the industry standard — and the bill would have capped these increases to 15%.

Paraguay has become a major location for bitcoin mining as a result of the country’s abundant power. The Itaipú dam, one of the largest in the world, has proven to be a boon of cheap energy, enabling a rush to absorb this value into the Bitcoin network via mining. If the country seeks to expand on this rush of investment into the energy infrastructure of the country, getting regulation correct is critical to not stifling that.

Industry players involved in Paraguay include Bitfarms, who has a 10MW facility based there, and Pow.re, who has operations totaling 12MW there.



Source link

Continue Reading

Trending