A ban on cryptocurrencies that work based on PoW has disappeared from the law on cryptocurrency market regulation being developed in the EU.
In his Twitter, Stefan Berger, chairman of the Economics Committee, said that the wording banning cryptocurrencies that work on the Proof-of-Work consensus algorithm had been removed from the draft law on the regulation of cryptocurrencies in the European Union (MiCA).
Blockchain projects based on PoW were planned to be banned from January 2025. The main reason is the high level of energy consumption required to ensure the operation of networks based on Proof-of-Work. The PoW consensus algorithm is used, for example, by the Bitcoin network. The vote to pass the bill was postponed on February 28.
The MiCA bill would introduce broad regulation of the cryptocurrency industry: licensing of service providers, rules for issuing stablecoins, etc. A new date for a vote on the bill has not yet been announced.