A newly drafted bill aimed to ban all the Proof-of-Work-based crypto assets in the European Union.
Bitcoin is based on Proof-of-work based traditional Consensus, which is less efficient than the current Consensus and available technology because of the evolution of this industry. However, Bitcoin is getting support because of its first-mover advantage in the industry but other crypto assets based on the same traditional technology are not getting that level of support like Bitcoin has. Because of the increasing environmental impact of such assets, few government agencies are worried about its future.
On 23 February, BTC-ECHO, German crypto news media, published a report on the efforts of one of the legislative branches of the European Union, the European Parliament, which is working to bring a ban law on the crypto assets, which are based on Proof-of-work Consensus technology, to save the environment from pollution.
The final version of the newly drafted bill of Markets in Crypto-Assets (MiCA) is aimed to bring a better regulatory framework on the crypto industry with the inclusion of a ban on Proof-of-work based cryptocurrencies, which included Bitcoin, Ethereum, Litecoin, and many more crypto assets.
If this bill gets passed successfully without any road pump or questions, then surely it will come into effect from 1 January 2025 and after that, all the Businesses in the EU will not be allowed to give services related to Proof-of-Work based crypto assets.
Reportedly Christian Democrats oppose this legislation-based framework, which included the ban on Bitcoin. However legislation is not targeting Bitcoin but targeting all Proof-of-work based crypto assets, so technically either bill will face failure to get introduced or will go through more development works.
If we look in the crypto market then it is bitcoin and Ethereum, which are standing at the first two positions. Both of these two are based on the same Proof-of-work based technology. However Bitcoin has much better support but the Ethereum project team is not sure whether it will be able to sustain its future or not, so they are working to shift the Ethereum blockchain network from Proof-of-work to Proof-of-stake Consensus.
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