Bitcoin and cryptocurrency miners remain in the crosshairs of the European Union, despite the rejection of a proposal that would have banned proof of work (PoW) at the level of the European Parliament.
After yesterday’s vote by the Economic and Monetary Affairs Committee, which rejected the de facto mining ban on BTC and ETH as part of its Markets in Crypto Assets Bill , MiCA), the commission has announced that it wants to adopt a “negotiating position” on the regulation of the crypto industry.
In a press release, the committee said the position “aims to build user confidence and support the development of digital services and alternative payment instruments.”
For miners, this is perhaps a clear message that the failed PoW vote is just the beginning, not the end, of a long process by MEPs to regulate mining.
The commission wrote:
“To reduce the high carbon footprint of cryptocurrencies, in particular the mechanisms used to validate transactions, MEPs call on the Commission to come forward with a legislative proposal to include in the EU taxonomy (a classification system) for sustainable activities any cryptocurrency mining activity that contributes substantially to climate change, by January 1, 2025.”
Although 23 committee members abstained in the vote on the new position, only four voted against, and 31 voted in favour.
The EU taxonomy is the name lawmakers have given to their vision of a sustainable finance network – a classification system that includes a list of environmentally friendly economic activities.
The European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union had previously told Cryptonews.com that the bloc “will work towards setting standards for climate-friendly cryptocurrencies” as part of its strategy.
Miners wouldn’t be the only people in the crypto community affected by the new framework, however – businesses and traders could also face new regulations if the proposals are accepted by the European Commission and the governments of the Member States.
MEPs also said they wanted to exercise control over “those who issue and trade crypto-assets (including asset-referenced tokens and e-money tokens)”, and address issues of “transparency, disclosure, authorization and [de] transaction monitoring.
“Consumers,” they added, “would be better informed of the risks, costs and charges” under the new proposals.
However, in response to protests by miners not to vilify an industry which some say is no more polluting than many others, the commission added that other IT sectors were also in its sights.
The committee added:
“MPs point out that other industries (e.g. video games and entertainment industry, data centres) also consume energy resources that are not climate friendly.”
MEPs said they would ask the European Commission “to work on legislation addressing these issues in different sectors.”
Furthermore, MEPs want theEuropean Securities and Markets Authority oversees the issuance of tokens referenced by assets, while theEuropean Banking Authority will be responsible for supervising electronic money tokens.
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