February 23, 2024

The European Union to Reconsider Banning Crypto as Bill It Makes Its Way Back Parliament

There is an amendment aimed at restricting the usage of proof-of-work cryptocurrencies in the Eurozone. It was finally added to the last draft of the Markets in Crypto Assets framework currently in design for regulations in the crypto sector.

Parliamentary Committees Get to Work

A committee of the European Union parliament in charge of cryptocurrency regulations is scheduled to have a vote to pass the finalized version of the draft on the 14th of March.

According to reports from U.Today, a second draft which contained a provision that intends to completely ban Bitcoin in the European Union by the year 2025 had been introduced to the European Union parliament late in February. There was a lot of backlash from the crypto community and beyond, which was apparently the reason EU lawmakers dropped the plan of cracking down on the proof-of-work agreement mechanism that is considered energy-intensive.

The spokesman behind the planned MiCA framework, Stefan Berger, made it clear that the bill, in its original plan, was not made to be a de facto ban of Bitcoin. He said that elements of draconian provisions had been removed from the proposed bill.

Meanwhile, the Head of Strategy and Growth with Unstoppable Finance, Patrick Hansen, wrote out that the construction of the recent proof-of-work ban, though a bit watered down, is still in its essence contains the same thing with the former. 

The Crypto Sector Speaks Out Loud and Clear

There is once more a serious backlash on the late fix in the crypto bill that has been sent to the European parliament. The former blockchain lead at Meta, David Marcus, has described the planned ban on Bitcoin as a move of protectionists. He argued that the bill, if passed, could stop European businesses from having the required relevance they should have on the global stage among other relevant businesses.

Marcus went ahead to predict that the bill might have a catastrophic effect on the European continent as it would at the same time create a huge opportunity for the United States.

 In the same vein, the Chief Strategy Officer at CoinShare, Meltem Demirors, mentioned that it amounts to a political attack on individual and corporate financial freedom while he forecasted that the European Union regulators would not stop after banning just Bitcoin and other cryptocurrencies.

According to the CEO of Ledger, Pascal Gaulthier, he has asked the company’s other executives to make contact with members of the European parliament so they could reverse the decision.

Every player in the crypto sector in the European Union hopes the bill will be dropped in the process of negotiations.

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