European Union to vote on PoW mining ban

According to the media reports, the relevant amendment was made to the document at the last minute

14.03.2022 - 09:35

735

1 min

What’s new? On Monday, March 14, the European Union will vote to ban cryptocurrency mining based on the Proof-of-Work (PoW) consensus algorithm, CoinDesk reports. In question is the law on Markets in Crypto-Assets (MiCA), which is being widely discussed by the community.

News on the CoinDesk website

What is known about the law? The law was first proposed in September 2020 and included a ban on “environmentally unsustainable consensus mechanisms.” Cryptocurrencies with high energy consumption when mining, including Bitcoin, Ethereum, and Dogecoin, fell under this definition.

This requirement had previously been removed from the document but was added back into consideration at the last minute before the vote, according to CoinDesk. The main reason for reintroducing the banning clause is that PoW mining violates EU environmental standards and harms the environment.

PoW is an algorithm for generating new coins by performing complex and energy-consuming mathematical calculations on special devices, miners.

Author: