The main goal of the framework was proper regulation of crypto. The vote has been postponed amid different concerns related to proof-of-work mining.
Work has been going around in the cryptocurrency community regarding the establishment of the regulatory framework for crypto by the European government. This move was talked about in order to ensure proper and safe practices with cryptocurrencies.
It is definitely a pretty crucial step since the situation of crypto is not going too well due to the ongoing tension between Ukraine and Russia. However, according to today news cryptocurrency, the vote has been delayed by the European government by citing some reasons for proof-of-work.
Stefan Berger, who is an integral member of the European Parliament mentioned, “It is crucial for me that the MiCA report is not misinterpreted as a de facto Bitcoin ban,”. This definitely goes to show that the parliament of the entire European Union is planning on delaying the vote that is to be given on the regulation of cryptocurrency. The main goal of the framework was proper regulation of crypto. The vote has been postponed amid different concerns related to proof-of-work mining.
New Decisions For Crypto Regulations Postponed: Today News Cryptocurrency
In a Twitter thread that came out this Friday, the economics committee of the European Parliament had very strong views about the crypto regulations.
According to one committee member named Stefan Berger, the government body had made the decision for cancelling the vote on the Markets in Crypto Assets or more commonly known as MiCA, a framework that has been scheduled to complete on Monday.
Berger also mentioned that the entire parliament has to provide a clarification for the “question of proof-of-work” for the discussions that were taking place with different stakeholders in order to ensure that a proper and legal framework was being established. They also added that a few people might manage to misinterpret the entire proposal as a ban on cryptocurrency.
“The discussion about MiCA indicates that individual passages of the draft report can be misinterpreted and understood as a [proof-of-work] ban,” said Berger. “It would be fatal if the EU Parliament sent the wrong signal with a vote under these circumstances.”
The MiCA was first introduced into the European Commission in the month of September 2020. It was adopted by the European Council in the month of November 2021. The main aim of the MiCA was to ensure that a proper framework was created in order to ensure that the crypto-assets market was benefitted.
According to the members it was aimed to “create a regulatory framework for the crypto-assets market that supports innovation and draws on the potential of crypto-assets in a way that preserves financial stability and protects investors.”
Berger was appointed as the rapporteur of the entire process of voting. He was the person who was to report on the proceedings of the vote. Hence, the announcement was made by Berger that the vote had been canceled by the European government. He also didn’t make any specifications as to when it might be re-scheduled again.
Also Read: For the very first time in Brazil, a Bill to Authorize Cryptocurrency is being Debated in the Senate
The push for clarification may have been prompted by reports that a leaked draft of the MiCA proposed banning the use of cryptocurrencies in the EU over their use of energy. If enacted, the regulatory proposal would replace all current national frameworks on crypto for EU member nations without the need to reform laws one at a time, which could have potentially led to a ban on proof-of-work mining.
Many lawmakers and regulators in the EU have been calling for a ban on proof-of-work mining as the crypto space grows and the impacts of climate change become more visible. According to today news cryptocurrency, a Swedish financial watchdog, and the Swedish Environmental Protection Agency called for a ban on proof-of-work mining in November, a move that received criticism from some industry leaders.
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