Bitcoin ban makes a comeback: EU Parliament with new demands

stood in the EU at the end of February Ban on “energy-intensive cryptocurrencies” in the room. At the time, some feared a ban on proof-of-work-based (PoW) assets. The advance was averted at the last second in Parliament.

Now representatives of the EU Parliament of the Greens, Left and Social Democrats are putting the PoW ban back on the agenda in a trial with the Commission and the Council. In a worst-case scenario, demand could prompt crypto providers to stop supporting PoW-based cryptocurrencies like bitcoin. The BTC-ECHO is in front of the draft – and there is a lot in it. But one after the other.

The first requirement relates to the amount of information that crypto projects must provide in their white papers. It contains, in accordance with the will of the Parliament of the European Union, “general information on one’s environmental and climate impacts”. [jeden] consensus mechanism”.

For Bitcoin, the most well-known PoW-based cryptocurrency, this is problematic as it is not possible to change the white paper at a later date. Experts are worried. Robert Kopitch from the Association blockchain for europe Warns btc-echo:

The new demand from S&D and Greens is not only a huge effort for everyone involved, but also creates new regulatory uncertainties, which in extreme cases could lead to a ban on some crypto assets like bitcoin. The initiative goes far beyond the agreement already reached in the EU Parliament.

Bitcoin providers must check compliance with stability standards

In addition, negotiators in the EU Parliament want to compel crypto providers to submit information about the most significant negative environmental and climate impacts for each crypto asset they offer “prominently” on their own platform. .

In addition, the European securities regulator has to define sustainability standards and limits. Originally, the passed parliamentary draft was called a “guideline”. With the new words, negotiators in the Green, Left and Social Democrat camps are raising the measures to mandatory levels.

Standards that are yet to be defined must be complied with by crypto providers if they want to operate in the EU. Platforms must also take “effective measures” to “appropriately address negative environmental and climate impacts”. As a result, non-compliance can result in the cryptocurrency being banned from trading venues.

In April issue of BTC-ECHO magazine We summarized the ban drama surrounding bitcoin. It was clear at the time that the talks were less constructive and more ideological in nature. Looks like this time too. The extent to which the new demands have been agreed with the rest of Parliament remains to be seen. However, it seems that the ban faction around the Greens, Left and Social Democrats is trying to turn the defeat in the parliamentary vote into an ideological victory in the trilogy. It remains to be seen whether it succeeds. The trilogy talks will take place today, June 14.