May 16, 2022

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Tomorrow a law will be voted on to regulate Bitcoin in Europe and these are the critics

Tomorrow a law will be voted on to regulate Bitcoin in Europe and these are the critics

There are only a few hours left before the regulation on cryptocurrency markets, known as the MiCA Act, is put to a vote in the European Parliament. There are many personalities and companies inside and outside the bitcoin industry who reject the restrictions that this law might place on mining bitcoin and other cryptocurrencies.

Although many modifications were made to the text that They suggested that no action would be taken against miningSuch as mentioned CriptoNoticias, apparently there is still an intention to limit the use of cryptocurrencies mined through work test (PoW), for example, Bitcoin.

This was stated by French MP Pierre Persson, who Review The current version of the legislation. The parliamentarian says that – as it is phrased – the law “definitely condemns the future of crypto assets in Europe,” and similarly asserts that if Bitcoin and Ether, the original cryptocurrency of Ethereum, were banned, the use of non-fungible tokens (NFT) and decentralized finance (DeFi) were ), the European Parliament “mortgages the monetary and fiscal sovereignty of Europe”.

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MiCA represents a major break with the principle of technological neutrality. MiCA prohibits issuing or offering to exchange crypto assets based on Proof of Work protocols. This leads to a deadly regulation that will exclude Bitcoin and Ether from Europe.

Pierre Pearson, French MP.

In addition, the MP asserts that parliamentarians who have been vehemently opposed to cryptocurrencies, believing that they are protecting citizens, are in fact – under the current version of the law – Make them lose their competitive edge against the United States and other countries.

French MP Pierre Persson believes that the current draft of the MiCA law will leave them behind countries like the United States, which have already passed regulations on cryptocurrency. source: Wikipedia.

The person’s words relate to the recent executive order outlining the strategy of President Joe Biden’s government, to regulate bitcoin in that country, Reported by CriptoNoticias.

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Michael Saylor defends proof of work

Other voices that have come out to reject MiCA are those of Bitcoin and famed businessman Michael Saylor.

CEO of MicroStrategy pass That “the only way to create digital ownership is through proof of work.”

The CEO confirmed that Bitcoin It is a ‘digital property’ and is the ‘most profitable’ method yet discovered to ‘turn energy into prosperity’. “Banning digital ownership would be a billion dollar mistake,” he said.

He also said that non-power based methods such as Proof of Stake (PoS), Securities should be considered (Guarantees) “Until proven otherwise.”

For its part, was Ledger, the company that makes hardware wallets, headquartered in France Certainly, in his rejection of European legislation.

at release The post on March 11, claims that “some parties have proposed amendments” with a view to Proof of Work compatibility protocols blockedlike Bitcoin, raised And other block chains and crypto assets popular in Europe.

According to the company, Several MPs issued an ultimatum to the rest of Parliament Which reads: “Accept our Bitcoin ban or we will oppose the entire MiCA package.”

In this sense, Ledger noted that individuals and organizations “should have the freedom to choose the technology that best suits their needs. Policy makers should not dictate or discriminate in favor of a particular technology. This is very worrying and will have disastrous consequences for Europe.”

It should be remembered that the intentions to ban Bitcoin mining in Europe came after Erik Thedin and Bjorn Reisinger, directors of the Environmental Protection Agency and the Swedish Financial Supervisory Authority Will publish a report about him activity effect.

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Whatever is here studiessuch as Bitcoin Net Zero, which states that while Bitcoin’s energy consumption can be considered “high,” it does not even represent 0.04% of global electricity consumption.