Concerns As EU Plans To Ban Bitcoin

The emergence of cryptocurrency led to a rapid change in transactions in the financial sector, giving rise to a stage where digital transactions are gradually replacing conventional financial transactions. 

Over the years, there have been calls from some individuals and groups about the operation of cryptocurrency, particularly Bitcoin, and its effect on the environment due to mining. Some critics want Bitcoin to cease operating due to its price volatility. The most vocal critic of Bitcoin was the governor of the Central Bank of Hungary. He previously called on the European Union to ensure that Bitcoin mining and use are banned and kicked out of the EU.

It appears from all indications that the governing council of the European Union is considering axing Bitcoin and stopping the use of some Proof-of-Work cryptocurrencies shortly. By 2025, if the Council of the EU moves ahead with its planned amendment to the MiCA proposed legislation, the ban is expected to be effective in January 2025.

According to BTC-ECHO, a Germany-based cryptocurrency media firm, the European Parliament, a branch of the association of member countries of the European Union, is planning to outlaw the use of Bitcoin and other cryptocurrencies for some years to come.

The EU is working on the final draft of the regulatory framework for regulating the cryptocurrency industry in the European Union member countries, including prohibiting any environmentally unfriendly operation or mechanism detrimental to the environment within member countries.

What MiCA Says

The regulatory framework proposed by the EU to checkmate the activities of cryptocurrency is named MiCA (Markets In Cryptocurrency Assets). The regulations contained in the new proposed law governing the use of cryptocurrency in the EU aim to check the activities of digital currencies, particularly Bitcoin, and how their operations undermine the environment.

Suppose the proposed regulation succeeds in getting the required approvals from member countries. In that case, this means that Bitcoin mining and use would be outlawed within the European Union member countries effective 1st January 2025.

Businesses under the new regulation are prohibited from providing services or entering into any venture that has to do with Bitcoin and other PoW (Proof-of-Work) cryptocurrencies.

The Movers of MiCA

The proposed ban was jointly pushed by leftist parties, The Greens and the Left Party. According to Stefan Berger, a center-right activist behind the proposed ban, the planned action by the EU is just a matter of time.

However, some Democrats and right-wing party members opposed the ban on Bitcoin and have been calling for some form of negotiation instead of an outright ban.

According to multiple reports, the European Union executive body will meet with member states and the EU Parliament in a roundtable discussion before coming to a final and decisive conclusion in the latter part of this year.

As it stands, the EU appears to have been working on the complaints of some of its members who have held opposing views about using digital currencies for some time.

Leave a Reply

Your email address will not be published.

Related

ECB’s President, Christine Lagarde, Says Crypto Assets Have No Worth

In an interview, Christine Lagarde, the head of the European Central Bank, made it quite plain where she stands concerning the value of digital assets. Head Of ECB Label Cryptos As Worthless According to a survey by Politico, the head of the ECB noted her position on crypto. The ECB head stated that digital assets […]

UK Regulators are Investigating Terra’s Fiasco and Considering Crypto Rules

UK cryptocurrency market regulators are currently investigating Terra’s plunge. It began amid the recent cryptocurrency market massacre. The leading cryptocurrency in the market, BTC, fell as low as $26,000 during the market downturn. At the same time, Terra fell by about 100%. Terra’s Meltdown Under Investigation as UK regulators Consider New Crypto Rules While regulators […]

FTX Launches Stock And ETF Trading Option In The United States 

A prominent cryptocurrency exchange, FTX, is getting into the stock trading business. Soon, its users will be able to trade equities and exchange-traded funds on the platform.  Only A Few Users In The United States To Enjoy The Service  The Wall Street Journal reports that the firm Sam Bankman-Fried helped establish and serve as its […]

Major Australian Bank Shelves Crypto Launch Plan

CBA’s Crypto App Plan As previously mentioned last year, Australia’s biggest bank disclosed plans to let its users carry out crypto-related transactions on its app.  It has been taking its plan to develop the project but as not stated a particular time it will finally launch the project to the public. It also has plans […]

Crypto Investors Suffer from Lingering Fears

The Situation at Hand The drastic drop and decline that befell the digital asset market last few weeks have left a mark on the users and investors of crypto, with crypto coins and other assets experiencing their lowest of lows and even stablecoins being affected, it’s no surprise that both old and new investor is […]