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.