On Friday, the European Union Parliament pushed the MiCA crypto legislation voting date indefinitely from the 28th of this month. A leaked draft of the proposal features the banning of all PoW cryptos. Per Member of Parliament Stefan Berger, the MiCA report mustn’t be misinterpreted as a de facto BTC ban.
EU’s Crypto Regulation Vote Put On Hold Indefinitely
Yesterday, the European Parliament pushed the MiCA legislation to later following a request from its member, Stefan Berger. The MiCA report allegedly features a proposal to ban all PoW cryptocurrencies, including BTC and ETH. However, Berger has clarified that he needs time to go through the proposal, and it should not be taken as a targeted BTC ban.
Following the Parliament’s announcement, The EU’s Economic and Financial Affairs Council, ECB President Christine Lagarde said the proposal must push forward soon. She explained that the legislation would help enforce sanctions against wrongdoers like Russia as it may turn to cryptos after the international financial ban.
Stefan Berger, a member of the European Parliament economics committee, tweeted, explaining that the vote’s postponement will allow for discussions with crypto stakeholders. In his thread, he explained that the discussions were important to explain that banning PoW cryptos won’t be the same as imposing a blanket ban.
EU Seeks to Ban All PoW Cryptocurrencies, Including BTC and ETH
The MiCA legislation was introduced to the European Commission in September 2020, only to be adopted in November 2021 by the European Union. It aims to introduce a regulatory framework for digital assets while protecting investors.
If enacted, the legislation would replace the in-place crypto regulations of the EU member nations without updating the existing laws singly. Reportedly, the law would also lead to a ban on PoW cryptos and their mining activities among the member nations.
Due to their climatic impacts, lawmakers in the EU have been calling for a ban on PoW cryptocurrencies and their mining. For instance, Swedish regulators and the Swedish Environmental Protection Agency called for a ban on PoW mining ban last November. However, that move received a backlash from some industry stakeholders. The consideration of such a backlash may have counted in the pushing back of MiCA’s voting schedule.
ECB Wants the MiCA Legislation to Pass Fast for Sanctions Against Russia to Stick
In the wake of Russia’s invasion of Ukraine, most nations are maintaining neutrality to avoid escalating the situation. However, some of these nations have imposed sanctions on Putin’s government to limit its funding over its’ uncouth behaviour.
The US is leading the world in imposing financial sanctions on Russia but inside reports suggest that they may not affect it. Inside sources say that Putin’s government has been planning on the attack for a long and has strategically positioned offshore treasury to deal with the sanctions.
Another report suggests that Russians hold over $23B in cryptocurrencies which may help them circumvent the sanctions by other economies. Due to that reason, the ECB wants the European Parliament to pass the MiCA legislation soonest possible to figure out how to counter Russia’s crypto usage in circumventing the imposed sanctions.