European Union Reportedly Votes Against Banning Proof of Work Cryptocurrencies

The European Union has voted against the proposition to ban proof of work cryptocurrencies on its territory.

After weeks of debates and delays, the EU has voted against banning the use and mining of proof of work digital assets, such as bitcoin and ether.

  • We reported earlier the Markets in Crypto Assets (MiCA) framework developed by the European Union, which had one rather threatening note that sought the de facto ban of PoW cryptocurrencies.
  • The digital asset community, led by MicroStrategy’s Michael Saylor, opposed the draft, saying it could become a trillion-dollar mistake.
  • The vote, initially scheduled to take place in late February, was delayed due to Russia’s invasion of Ukraine but was put back on the table last week and took place earlier today.
  • To the relief of the community, reports emerged saying that 32 people voted against the de facto POW ban, while only 24 were in favor. Consequently, the proposition was rejected.
  • However, as crypto commentators pointed out, those voting in favor of the ban still have a chance. Nevertheless, there were reportedly enhanced discussions about the types of regulations still needed to be incorporated on mining and the entire crypto industry.

“5. By 1 January 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any cryptoasset mining activities that contribute substantially to climate change mitigation and adaptation.”

  • Gemini’s Cameron Winklevoss was among the first to outline the EU’s “right call,” also indicating that BTC’s carbon footprint to merit ratio is “so much stronger than other energy uses in the EU.”
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