The crypto market has been under further pressure ahead of reports that the European Union (EU) is working on a measure that would ban all Proof-of-Work (PoW) cryptocurrencies due to environmental concerns. This suggests that Bitcoin could be banned in the EU as well!
Bitcoin (BTC) is presently trading at $38,577, with a market capitalization of $730 billion. Other Proof-of-Work cryptos, such as Ethereum (ETH), are also in the red. Similarly, the correction in the altcoin market appears to be more severe.
The European Parliament will vote later today on the contentious Markets in Crypto Assets (MiCA) framework. A section in the MiCA draft legislation prohibits all energy-intensive digital assets.
The latest development comes as the United Kingdom considers outlawing all Bitcoin ATMs in the country.
Before being issued, marketed, or permitted to trading in the Union, all digital assets must meet the EU’s minimal environmental sustainability standards in terms of the consensus mechanism used for authenticating transactions, according to MiCA.
Circle CEO Jeremy Allaire stated last week that
Will the EU Reach a Bitcoin Ban Compromise?
Well, what the legislators have been working on is challenging today.
Energy consumption for Bitcoin mining has long been a point of contention. Last year, China outlawed crypto mining for this reason. Even Elon Musk has expressed concern about Bitcoin’s energy consumption.
Since mid-2021, however, the industry has made significant progress toward the utilization of renewable energy for Bitcoin mining. VanEck Director Gabor Gurbacs slammed the EU, saying that if the EU is serious about reducing carbon emissions, they have a lot of other things to outlaw before Bitcoin.