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European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision

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European Union’s MiCA Proposal Progresses to Trilogue Stage Without Bitcoin Ban Provision

The Markets in Crypto Assets (MiCA) regulatory package passed another potential hurdle this week and is moving to the next stage of the EU’s legislative process. Proponents of a controversial text prohibiting proof-of-work (PoW) cryptocurrencies, which was recently dropped from the draft, did not take an opportunity to block the draft’s progress.

EU Parliament, Commission and Council to Negotiate Over MiCA Regulations

Wording proposed by members of the European Parliament (MEPs) which aimed to impose a ban on cryptocurrencies relying on PoW mining was removed from MiCA before a recent vote. In mid-March the Committee on Economic and Monetary Affairs (ECON) approved the regulations without a provision that would have effectively prohibited the offering of services for bitcoin and the like.

However, the crypto community couldn’t greet the development with relief as it was still possible to prevent the draft from progressing to the next stage of the legislative process – the trilogue between the European Parliament, the European Commission, the executive arm in Brussels, and the Council of the EU, the other legislative body of the Union.

The deadline by which an objection could be filed expired at midnight on Thursday, March 24, the German crypto news outlet BTC Echo noted in a report. Until then, the factions of the Greens, Left and Social Democrats, the supporters of the de facto bitcoin ban, could halt the advance of MiCA and attempt to reintroduce the text which had sparked negative reactions from the crypto community.

Stefan Berger, the rapporteur for the legislation, confirmed on social media that MiCA will now be subjected to negotiations between the three leading EU institutions. Berger who is also a member of ECON, thanked his colleagues at the committee and other supporters of his efforts. In a tweet he stated:

The MEP also pointed out that he had suggested connecting MiCA to the EU Taxonomy for Sustainable Finance. With its taxonomy classification system, the EU is evaluating economic activities according to their sustainability and trying to direct investments towards sustainable projects. “I am optimistic that this proposal will be approved by the Commission and the Council,” Berger emphasized.

Regulatory bodies and officials from several EU member states called for a Union-wide ban on the energy-intensive PoW crypto mining, citing environmental reasons. The group includes the bloc’s economic powerhouse, Germany, and Sweden which warned that the increasing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors.

EU institutions have been working to regulate the European crypto space in the light of concerns that Russia may use cryptocurrencies to evade sanctions imposed over its invasion of Ukraine and crypto assets were targeted in a recent agreement to expand the restrictive measures. In February, President of the European Central Bank Christine Lagarde urged the Union to quickly approve the new crypto regulations with the same motive.

Do you think the European Union will adopt the MiCA regulations without the bitcoin ban? Tell us in the comments section below.

EU Parliament Committee Votes Against Proof-of-Work Ban, Supports Alternative Amendment on Crypto Assets

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EU Parliament Committee Votes Against Proof-of-Work Ban, Supports Alternative Amendment on Crypto Assets

European Parliament’s economic and monetary affairs committee has voted against banning proof-of-work-based assets for companies in the European Union. An alternative proposal on crypto assets by European Parliament member Stefan Berger receives support instead.

Committee Rejects Proof-of-Work Ban


The Committee on Economic and Monetary Affairs (ECON) voted on the proposed Markets in Crypto Assets (MiCA) framework Monday. The proposal includes a de-facto ban on proof-of-work, a last-minute addition to the bill.

According to Patrick Hansen, head of strategy at Unstoppable Finance, the committee has voted against the proposed proof-of-work (POW) ban. He explained in a series of tweets Monday:

The ECON committee of the EU Parliament just voted against the de-facto POW-ban … Big relief & political success for the bitcoin & crypto community in the EU.


Overall, 23 voted in favor of the POW ban amendment, 30 voted against, and six abstained, he added. As for the entire MiCA draft, Hansen clarified that the final votes were 31 for, 4 against, and 23 abstentions.

Unstoppable Finance tweeted: “We are relieved that the Parliament voted against the ban of proof-of-work-based assets for EU companies.”

Prior to the vote, lawyer Jake Chervinsky noted that MiCA’s POW ban looks like “a pretext for a bitcoin ban.” He warned: “Make no mistake: if they manage to ban POW, they’ll come for POS [proof-of-stake] next, & every other Sybil resistance mechanism after that.”

Alternative Amendment on Crypto Assets Supported


Hansen added that an alternative amendment from European Parliament member Stefan Berger received support instead.

The amendment reads: “By 1 January 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any crypto asset mining activities that contribute substantially to climate change mitigation and adaptation.”

Berger tweeted after the POW-ban votes that this is a first-stage win for MiCA. He added that by accepting his proposal, EU parliament members have paved the way for future crypto regulation.

Regarding whether there are still any chances left for the proof-of-work ban, Hansen explained:

The groups that lost the vote have one last option. They could veto a fast-track procedure of MiCA through the trilogues & bring the discussion to the plenary of the Parliament. They need 1/10 of the votes of the EP to do so, which they have.


He noted: “Even outside of this MiCA regulation, the discussion around POW regulation is far from over.”

What do you think about the EU parliament committee voting against the proof-of-work ban? Let us know in the comments section below.

MiCA Amendments Proposed Last Minute Revive Threat of EU Ban on Bitcoin, Report Reveals

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MiCA Amendments Proposed in Last Minute Revive Threat of EU Ban on Bitcoin, Report Reveals

Changes to the EU’s MiCA proposal to regulate crypto markets, suggested shortly before a vote on the package, indicate a bitcoin ban is still a possibility. Despite recently removing wording that would have prohibited coins with energy-intensive mining, some members of the European Parliament are now targeting “unsustainable” cryptocurrencies.

New MiCA Paragraphs Call for Subjecting Cryptocurrencies to ‘Sustainability Standards’

A text banning the offering of services for cryptocurrencies relying on the proof-of-work (PoW) mining method was recently deleted from Europe’s Markets in Crypto Assets (MiCA) draft legislation. The controversial provision had sparked negative reactions from the crypto industry and community.

However, attempts to effectively ban cryptocurrencies like bitcoin in the EU have continued. Amendments to MiCA proposed on Friday, days before the Committee on Economic and Monetary Affairs (ECON) votes on the package, aim to restrict cryptos classified as “unsustainable.”

PoW mining is not specifically mentioned this time but the end result is likely to be the same, the German crypto news outlet BTC Echo reported. “Crypto assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union,” the new provision reads.

Such cryptocurrencies, according to the authors of the amendments, shall be compliant with sustainability requirements. If the proposal is backed by ECON on Monday, when the committee is scheduled to vote on MiCA, bitcoin-related services will be de facto excluded from the scope of regulated activities. Patrick Hansen, head of strategy and growth at Unstoppable Finance, tweeted:

The consequences of a positive vote would be devastating, the report notes. A complete ban on cryptocurrencies based on the proof-of-work concept would paralyze the digital assets market in the EU and encourage the circumvention of laws, weaken consumer protections and ultimately force many businesses in the industry to move out of the Union.

Officials and regulators from several member states, including Germany, have in the past few months called for a European ban on the power-hungry PoW mining, citing environmental reasons. Sweden insisted on such a measure, warning that the increasing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors. Non-EU countries like Norway have been considering backing its stance.

Do you expect the European Parliament to adopt the recently proposed amendments targeting proof-of-work cryptocurrencies? Tell us in the comments section below.

2 Turkish Crypto Exchanges Investigated for Fraud After Central Bank Bans Cryptocurrency Use for Payments

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2 Turkish Crypto Exchanges Investigated for Fraud After Central Bank Bans Cryptocurrency Use for Payments

Two Turkish cryptocurrency exchanges are being investigated by the authorities in Turkey after they abruptly halted trading. The authorities have blocked access to the bank accounts of the second exchange and detained four people so far. Sixty-two people have been detained in connection with the first exchange whose CEO has fled the country.

Second Turkish Crypto Exchange Being Investigated

Following the alleged exit scam pulled by cryptocurrency exchange Thodex, another crypto trading platform is being investigated by Turkish authorities, the state-run Anadolu news agency said Friday. Vebitcoin, a Turkey-based crypto trading platform, became the second crypto exchange to face troubles within about a week after the country’s central bank banned crypto use for payments.

Vebitcoin posted a notice on its website on Friday stating: “Due to the recent developments in the crypto money industry, there was a much higher density in our operations than expected. We would like to state with regret that this situation has led us to a very difficult process in the financial field.” The statement continues:

We decided to cease our activities in order to fulfill all regulations and claims.

Turkey’s Financial Crimes Investigation Board (MASAK) has blocked the onshore bank accounts of Vebitcoin and begun an investigation into the platform. So far, four people have been detained as part of an investigation, a local prosecutor said on Saturday.

Mehmet Nadir Yagci, a prosecutor in the southwestern city of Mugla, said in a statement:

Four administrators and personnel of the company were detained on Saturday on allegations of fraud.

This followed the authorities detaining 62 people in connection with crypto exchange Thodex whose CEO has fled the country after halting trading on his platform. Customers have filed complaints against the company as $2 billion of their funds are inaccessible.

Both Thodex and Vebitcoin halted trading about a week after the Turkish central bank banned the use of cryptocurrencies, including bitcoin, a means of payment in the country. “Crypto assets cannot be used directly or indirectly for payments … No service can be provided for direct or indirect use of crypto assets in payments,” the official notice by the central bank reads.

What do you think about Turkish crypto exchanges being accused of fraud after the central bank banned the use of cryptocurrencies for payments? Let us know in the comments section below.

Ron Paul Warns of Government Crackdown on Bitcoin — ‘The Government Is the Threat’

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Ron Paul Warns of Government Crackdown on Bitcoin

Former congressman Ron Paul has warned of a government crackdown on bitcoin and safe-haven assets may not be safe from government intervention. “The government is the threat,” he said, noting that “they will crack down because they have the ability to do it.”

Ron Paul Warns of Government Threat to Bitcoin

Former presidential candidate Ron Paul shared his view on the government’s intervention on bitcoin in an interview last week with Kitco News’ Michelle Makori. Paul is an American author, physician, and retired politician. The former congressman from Texas launched The Ron Paul Liberty Report in 2015 to bring “provocative opinion and analysis to the breaking issues affecting our lives and finances,” its website describes.

Paul was asked about the “threat of potential gold confiscation or one form or other of government intervention because that concern is rising.” Several well-known hedge fund managers, like Bridgewater Associates founder Ray Dalio and “The Big Short” investor Michael Burry, have said that “safe-haven assets are not necessarily going to be safe from government intervention,” Makori recalled. “They expect possible tax changes or regulations that will prevent a flight of capital to these assets that could be viewed as an alternative to the dollar, like gold, like bitcoin.” She then asked Paul, “Could they be at risk of a government crackdown?”

The former congressman replied:

Absolutedly … the government is the threat because they will crack down because they have the ability to do it.

He added: “We had a taste of [a free society]. If you don’t know where to start, just start with the Constitution, that might give you an idea of what a free society is all about.”

Paul was also asked: “What form of a crackdown do you think this could take when we talk about assets, like gold and even bitcoin, potentially being at risk of government intervention at higher taxes and regulation … what do you think could happen to those assets?”

The former congressman replied, “I think all of that can happen.” He elaborated that “Either the tax system will be used” or the government will just print more money, resulting in “the devaluation of the currency.”

He further opined: “But they will do it for public relations reasons. They will have to show that they’re putting a heavy tax on the very wealthy because of the civil strife that’s going on.”

On President Joe Biden’s proposed infrastructure bill, Paul expects its outcome to be “worse than average.” He opined: “Most likely it will do what those kinds of programs always do, they spend a lot of money, they’re inefficient, they always cost more than they thought they should. Besides, it’s built on some mystical belief that you shouldn’t have any concern about the deficit … everybody’s just in a dream.”

What do you think about Ron Paul’s warning about bitcoin and government intervention? Let us know in the comments section below.