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The EU MiCA Vote Today Might Ban Exchanges From Listing Proof-Of-Work Crypto Currencies

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Later on Monday, the European Union will vote on adopting its Markets in Crypto Assets (MiCA) law. According to reports, a contentious restriction on proof-of-work (POW) currencies such as Bitcoin and Ethereum is still being examined, which has sparked massive outrage from the crypto community.

The vote is scheduled to take place today at 8:45 a.m. ET during a session. Despite assurances from the bill’s rapporteur, Member of Parliament Stefan Berger, that the prohibition would be lifted, the POW ban was restored into the MiCA plan over the weekend.

EU ministers are anticipated to vote on accepting one of two versions of the bill, one with and one without the POW prohibition. The EU parliament is concerned about the high energy costs and carbon footprint of mining POW tokens.

Following early criticism of the POW restriction, voting on the MiCA bill was postponed last month. However, EU politicians have emphasized the importance of crypto regulation, noting concerns about banned businesses using technology to avoid economic sanctions.

Members of the crypto community were outraged at the prospect of a POW prohibition. Several members of the European Parliament have also spoken out against the ban.

According to French politician Pierre Person, the move would condemn the future of crypto in the EU and complicate regulation of emerging spaces such as DeFi and NFTs.

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Dorien Rookmaker, a Dutch member of parliament, stated that a POW prohibition would encourage legal evasion and drive the crypto sector out from Europe.

According to Jean-Marie Mognetti, co-founder and CEO of digital wealth manager CoinShares, the move was shortsighted because it ignored the fact that much of PoW mining was now shifting to carbon-friendly sources of electricity, such as natural gas and renewable energy. Mognetti further stated that developments in mining technology were lowering the energy requirements of the industry.