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EU on Track to Ban Bitcoin: Report

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Wed, 02/23/2022 - 18:14
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Alex Dovbnya
Bitcoin will be banned in the EU starting from 2025 if the Commission and the Council of the EU don’t ditch a crippling amendment to the MiCA framework
EU on Track to Ban Bitcoin: Report
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According to a report published by German cryptocurrency media outlet BTC-ECHO, the European Parliament, one of the legislative branches of the European Union, is on track to ban Bitcoin and other proof-of-work (PoW) cryptocurrencies.  

The final draft of the Markets in Crypto-Assets (MiCA) framework, the much-anticipated package of cryptocurrency regulations, includes a provision forbidding the “environmentally unsustainable” consensus mechanism.

This means that Bitcoin could become illegal within the European Union starting from Jan. 1, 2025.  

Businesses would be prohibited from offering any services associated with proof-of-work cryptocurrencies.  

Stefan Berger, the center-right rapporteur behind the framework, told the outlet that the proposal was “very likely” to be greenlit.

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It was pushed by center-left Social Democrats, the Greens and the Left Party.  

Some Christian Democrats and right-wing conservatives opposed the addition of the Bitcoin ban, but it was a deal-breaker for the parties that supported cracking down on proof-of-work.

The European Commission, the executive branch of the European Union, will be engaging in a trialogue with the member states and the Parliament before reaching a final decision later this year.

Patrick Hansen, head of growth and strategy at decentralized finance startup Unstoppable Finance, described the proposal as “suicidal,” predicting that it would kill the entire crypto industry in the EU.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.