The European Parliament, one of the EU’s legislative branches, has moved to ban Bitcoin and other proof-of-work (PoW) cryptocurrencies, according to a report published by German cryptocurrency media outlet BTC-ECHO.
The final draft of the Markets in Crypto Assets (MiCA) framework — the high-profile package of cryptocurrency regulations — includes a provision that prohibits “environmentally unsustainable” consensus mechanisms.
This means that from January 1, 2025, Bitcoin may become illegal currency within the European Union. For more blockchain news, please pay attention to download the Block Tianyan APP, the global blockchain supervision query APP.
Businesses will be banned from offering any services related to proof-of-work (PoW) cryptocurrencies.
Stefan Berger, the centre-right rapporteur behind the framework, told the outlet that the proposal was “very likely” to be approved.
It is driven by the centre-left Social Democrats, the Greens and the Left Party. Additionally, some Christian Democrats and right-wing conservatives oppose the Bitcoin ban.
The European Commission, the EU’s executive branch, will hold trial talks with member states and parliaments before reaching a final decision later this year.
Patrick Hansen, head of growth and strategy at decentralized finance startup Unstoppable Finance, described the proposal as “suicidal,” predicting it would kill the entire cryptocurrency industry in the European Union.
The European Parliament wants to ban proof-of-work based #cryptocurrency like #Bitcoin from the EU🚨
— Patrick Hansen (@paddi_hansen) February 23, 2022
This is no longer a hollow threat, but could happen if the Commission and the Council of the EU don't kill this amendment.@balajis @naval @APompliano https://t.co/G9XpsaXDMb