If approved, it is necessary to restrict all kinds of encrypted coding such as Bitcoin, Ethereum of the European Union (EU) that can affect the world’s global investors.
Freight investors are waiting for the results of voting from the European Union (EU) on the draft market regulation framework in encrypted money (Markets in Crypto-Assets – Mica).
EU bill concentrates limited encoding using PoW (Proof-Work) algorithm to authenticate transactions such as Bitcoin and Ethereum. If approved in the vote on March 14 (local time), the bill will affect the encryption market in Europe, the big impact on global investors.
The EU believes that the types of PoW algorithms seriously affect the environment. In fact, the process of creating Bitcoin consumes 91 TWH each year, more electricity consumption of countries with small areas such as Finland.
The first manuscript of MiCA proposes to ban the PoW algorithm from January 1/2025. However, according to Coindesk, the Edit was later written softer, stating that the encryption “must comply with the minimum standards of environmental sustainability, related to the consensus mechanism used to authenticate the delivery before issuing, providing or accepting for transactions in the EU “.
The editing of the bill supplements the reason for Bitcoin’s carbon emissions that may exceed the EU environmental standards.
The bill writes that the types of money based on the PoW algorithm such as Bitcoin or Ethereum must “establish and maintain deployment in each stage to meet the requirements”, including switching to less energy consumption algorithms. The types of money are exploited and transactions with a small scale will be exempt from exemptions, but the bill does not provide criteria for determining small-scale currency.
Ethereum is planning to switch to POS (Proof-of-Stake) consuming less energy. Meanwhile, unknown Bitcoin will have any move if the bill is passed. Members can vote against the draft are very small, Coindesk said.
According to News.com.au, some encrypted experts expressed concern about the EU new bill, confirming the voting results very important.
“Such a proposal is very worrying, not in accordance with the actual situation,” said Jeremy Allaire technology expert, founder of Circle Pay encrypted company written on Twitter.
In the world, there have been many countries that issue a complete ban, or partly for encrypted money. In January, the Russian government announced a plan to ban completely digital assets because of concerns of money laundering and affecting the environment. Meanwhile, China has banned complete cash transactions from September 2021.
Some countries such as Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia and Bangladesh have also banned encryption. In November 2021, Indonesia issued a ban on using cash-encrypted money with Islamic people due to betting elements.