Will the EU ban cryptocurrencies that use proof of work?

A bill allowing the European Parliament to ban cryptocurrency mining using proof-of-work (PoW), including Bitcoin (BTC), has been reintroduced. According to the latest reports, the EU Parliament is set to vote on the bill on Monday. The bill had previously been strongly opposed by the cryptocurrency community and removed from the MiCA (Marketplace for Cryptocurrency Assets).

Patrick Hansen, director of strategy and growth at Unstoppable Finance, released some important updates to the bill. Hansen noted that there are two substitute bills coming to the floor, and he said only one of them will make it into the legislation.

"Prior to exporting, offering or receiving trade from the EU, cryptocurrency assets will comply with minimum environmental sustainability standards regarding the consensus mechanisms used to validate transactions.

Cryptocurrency assets issued, offered or accepted for trading in the EU prior to (the Effective Date) will be subject to and maintained under a phased distribution plan in accordance with the terms and subject to such requirements."

3/ EVP, AKR, Liberals (Renew) and ID support alternative bans.

Rapporteur @DrStefanBerger proposes and supports the alternative and explicitly does not include any ban.

A member of the Paris Parliament announced that he approved the vote on the bill.

(1/9) The MiCa regulation will be voted on next Monday. For now, it clearly condemns the future of cryptocurrency assets in Europe. By banning Bitcoin and Ether, by complicating the use of NFT and DeFi, the European Parliament is pledging our monetary and financial sovereignty.

– Pierr Person (@Pierr_Person) March 11, 2022

Is it possible to pass the bill?

Patrick Hansen said lawmakers could vote in favor of the bill because of the last-minute addition, which he hopes can be left for the next tripartite negotiations.

8/ But it is uncertain and you never know the outcome of negotiations, especially. Given the rapidly changing macro environment.

No one expected it to be passed in the EU Parliament either.

The move comes amid tensions between Russia and Ukraine. The European Union, along with the United States and other countries, have imposed financial sanctions on Russia. The media has often speculated that Russia could use cryptocurrencies to escape these sanctions. Meanwhile, the sound of sanctions regulating Russia's use of digital assets is once again making headlines.