EU Nixes Proof-Of-Work Crypto Ban
The European Union’s parliament voted on Monday against a proposal to limit the use of proof-of-work cryptocurrencies.
The union’s Committee on Economic and Monetary Affairs voted 24-32, effectively thumbing down passing the initiative.
The proposal was part of the Markets in Crypto Assets (MiCA) framework aimed at regulating the region’s cryptocurrency industry.
Many crypto assets like bitcoin and ethereum use proof-of-work to confirm transactions and add new blocks to the chain. The process has received growing criticism for using up a lot of energy to process.
While there are calls to switch crypto mining’s power source to renewable energy, concerns have been raised that this could mean the infrastructure for green energy might end up favoring the crypto framework and not the public grid.
The proposed framework saw an additional provision over the weekend to limit the use of cryptos that use proof-of-work, which many in the cryptosphere have been equating to a ban since the limit renders most crypto mining activities inoperable.
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