EU to lift ban on Proof-of-Work algorithm
MiCA regulations no longer include requirements focused on “green” cryptocurrencies
02.03.2022 - 07:25
373
1 min
0
What’s new? The European Union has revised the law on Markets in Crypto-Assets (MiCA). The wordings regarding environmental mining, which prohibited the use of the Proof-of-Work algorithm, has been removed from the document. The members of the European Parliament have confirmed the amendments have been sent for a vote, which will take place in mid-March, BTC Echo reports.
What did the law say before? The law was first proposed by the European Commission in September 2020. The original version stated that starting in 2025, cryptocurrencies created and admitted in the EU should “not be based or rely on environmentally unsustainable consensus mechanisms.” Also, these mechanisms should “comply with minimum environmental sustainability standards.”
Such wordings imposed a ban on PoW-based cryptocurrencies. Not only Bitcoin, which consumes 170 TW/h, but also Ethereum, Dogecoin, and other more environmentally friendly cryptocurrencies using Proof-of-Stake fell under this rule.
Useful material?
Market
Due to supply shortages, the asset’s pre-market exchange rate was climbing above $1000
Dec 16, 2024
Incidents
Reports about the hacking of the exchange with calls to withdraw assets began to spread on December 13
Dec 13, 2024
Crypto regulations
Stablecoins from issuer Circle will not be affected by the changes
Dec 12, 2024
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024
Market
The $1,1 billion figure was reached after the bitcoin correction
Dec 6, 2024
Crypto regulations
By early January, all open positions and loans of local users will be closed and repaid automatically
Dec 5, 2024