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Definition and recognition of if any cryptocurrency is Proof-of-work or not will be decided in the European Union’s new amendment
A new controversy seems to ignite with the proposal of a legislative framework that includes language regarding proof-of-work cryptocurrencies set to be voted on by a committee of the European Parliament.
As earlier, some reports stated that the Market in Crypto Assets Directive or MiCA has already faced criticism and a negative response from the industry. The reason for the unfavorable response after the inclusion of language pointing out to exclude proof of work cryptocurrencies like bitcoin, ethereum, etc., from several benefits regarding the concerns of energy usages and consumption.
However, those proposed provisions have been exposed already. Still, the new development seems to appear over the weekend when a newly obtained version of the same text is included once again but in a weaker tone.
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Now the new version, titled as ‘compromise’ also dubbed as v9, states that crypto assets will be subject to sustain at minimum environmental standards with respect to consensus mechanisms they possess to validate transactions that are being issued, offered, or admitted for trading anywhere in the region of the European Union.
The executive branch of the EU, the European Commission, would be required to set the minimum environmental sustainability standards about the consensus mechanism used for validating crypto assets transactions. Further, it consisted of the statement about the date or the dates to comply with the requirements with the standards of minimum environmental sustainability, which would also include a phase-in period.
The text also includes the crypto assets issued, admitted, or offered to trade in the European Union before, which need to insert the date of entry with this regulation’s implication. Those digital assets also need to set up and maintain an already phased rollout plan ensuring compliance with those requirements.
The provisions include a withdrawal of small scale networks. On top of that, the commission would have been tasked to determine many conditions for which a consensus mechanism would be seen as a small scale network. The date for voting on the provision decided is 14th march.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
