EU on track to ban Bitcoin: report
Bitcoin to be banned in the EU from 2025 if the Commission and Council of the EU don’t scrap a crippling change to the MiCA framework
According to a report Published by German cryptocurrency media outlet BTC-ECHO, the European Parliament, one of the legislative branches of the European Union, has moved to ban Bitcoin and other proof-of-work (PoW) cryptocurrencies.
The final draft of the Markets in Crypto-Assets (MiCA) framework, the much-anticipated package of cryptocurrency regulations, includes a provision banning the “environmentally unfriendly” consensus mechanism.
This means that Bitcoin could become illegal within the European Union from January 1, 2025.
Companies are prohibited from providing services related to proof-of-work cryptocurrencies.
Stefan Berger, the centre-right rapporteur behind the framework, told the paper that the proposal would be “very likely” to get the green light.
It was pushed by centre-left Social Democrats, the Greens and the Left Party.
Some Christian Democrats and right-wing conservatives opposed the addition of the Bitcoin ban, but it was a deal breaker for the parties who supported the crackdown on proof-of-work.
The European Commission, the executive of the European Union, will enter into a trilogue with Member States and Parliament before taking a final decision later this year.
Patrick Hansen, head of growth and strategy at Unstoppable Finance, a decentralized finance startup, described the proposal as “suicidal” and predicted it would kill the entire crypto industry in the EU.
It’s such a suicidal proposition that it’s hard to digest. It would kill the entire European crypto industry, the only sector that fully aligns with European values and where the EU could actually be competitive.https://t.co/0cq1ktIzpe
— Patrick Hansen (@paddi_hansen) February 23, 2022