Mar 15, 2022 02:35
Did Europe Approve Cryptos finally? Cryptocurrency enthusiasts in Europe and across the world just received positive news. An attempt to ban cryptocurrency mining was just was avoided. The EU parliament voted against any proof-of-work consensus banning. This not only brings optimism to crypto markets, but also facilitates the path to upcoming crypto projects in Europe. Let's discuss more what specifically happened and which crypto regulations might still apply.
Europe Approve Crypto - What happened?
On his own Twitter account, Patrick Hansen tweeted about an important event that had just taken place. The European Parliament Committee on Economic and Monetary Affairs is a legislative committee in Europe, also known as ECON committee. Voting took place about whether they should ban the proof-of-work mechanism. POW is a mechanism that is still used by most cryptocurrencies such as Bitcoin and Ethereum. Many people who oppose blockchain tech view this consensus to be "bad" for the environment, and unsustainable.
On the other hand, the voting took place and the results were in: 31 against banning, 23 were in favor of banning. Big WIN for cryptos!
https://twitter.com/paddi_hansen/status/1503383993391194115
Will the EU ban Mining activities?
The banning proof-of-work mechanism was dropped by the EU. However, they added the draft to the EU taxonomy for sustainable activities. This drops the level of severity that most cryptocurrency enthusiasts fear the most. Banning cryptos is a red flag, where every cryptocurrency holder would sell in panic all his tokens.
The only way for members who were in favor of banning the POW to actually do it again, is to VETO this vote and raise the topic to the higher authority, aka the EU Parliament. Now of course, no one can predict what might actually happen post-VETO, but this will definitely delay positive regulations in vein.
What is MiCA Europe Crypto?
If you follow crypto regulation news, you must have heard about MiCA. It basically stands for "Markets in Crypto Assets". It is a branch of the European Commission established in September 2020. The MiCA is responsible for developing and implementing regulations that have to do with Digital Finance across Europe in this digital era.
MiCA seeks to also go hand-in-hand with Anti-Money Laundering (AML) laws and strengthens financial safety along with investors protection in Europe.
Will the US follow Europe in Positive Crypto Regulations?
There are many talks tha Joe Biden wants to also regulate cryptocurrencies in a positive way. A recent article spoke about how he wanted to push digital regulations relating to cryptocurrencies. On the other hand, the announement did not come with any details yet.
Although his intentions were different than a Swiss psychoanalyst’s, Joe Biden set off a similar exercise in the financial world this week when he issued a long-awaited executive order on digital assets that somehow managed to elicit a positive response in the cryptocurrency community.
Joe Biden finds a way to please the crypto crowd -
Financial Times
Newbie analysts or clickbait articles tend to always bring up this topic: Will Bitcoin reach $0? Well, it is definitely a clickbaity title, but reading the actual content would make you laugh. The entire article would be based on speculations, without bringing up any opposing fact. For now, there is a positive sentiment when it comes to cryptocurrency adoption, and Europe is currently leading the way.
Who is Celebrating this Crypto Win?
After Patrick's tweet went viral, the topic immediately garnered the attention of big players in the crypto scene. Even the founder of Binance had a say in this topic, laughing at the regulators who voted with the banning of mining. He simply suggested they start using Bitcoin.
https://twitter.com/cz_binance/status/1503390782396502020
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