The cryptocurrency market is going through a correction as the EU considers banning Bitcoin

The cryptocurrency market is going through a correction as the EU considers banning Bitcoin

Cryptocurrency
March 17, 2022 by Diana Ambolis
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The crypto market has been under further pressure ahead of reports that the European Union is working on a measure that would ban all Proof-of-Work (PoW) cryptocurrencies due to environmental concerns. This suggests that Bitcoin could be banned in the EU as well! Bitcoin (BTC) is presently trading at $38,577, with a market capitalization of
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The crypto market has been under further pressure ahead of reports that the European Union is working on a measure that would ban all Proof-of-Work (PoW) cryptocurrencies due to environmental concerns. This suggests that Bitcoin could be banned in the EU as well!

Bitcoin (BTC) is presently trading at $38,577, with a market capitalization of $730 billion. Other Proof-of-Work cryptos, such as Ethereum (ETH), are also red. Similarly, the correction in the altcoin market appears to be more severe.

The EU Parliament will later vote on the contentious Markets in Crypto Assets (MiCA) framework. A section in the MiCA draught legislation prohibits all energy-intensive digital assets. The latest development comes as the United Kingdom considers outlawing all Bitcoin ATMs in the country.

Also, read – European Commission Planning Tender for International Trade

Before being issued, marketed, or admitted to trading in the Union, all digital assets must meet the EU’s “minimum environmental sustainability standards concerning its consensus method used for authenticating transactions.” Circle CEO Jeremy Allaire remarked last week:

“A vote in the EU with extremely high stakes.” The fact that such a proposal has progressed this far is highly troubling, and it is unlikely to hold up in practice.”

Will the EU Reach a Bitcoin Ban Compromise?

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Well, what the legislators have been working on is challenging today. The EU politician in charge of the MiCA framework, Stefan Berger, told CoinDesk:

“As you might expect, the Greens and Socialists are criticizing the proof-of-work concept as well as the energy consumption, claiming that bitcoin consumes more energy than the Netherlands.” Energy consumption for Bitcoin mining has long been a point of contention. Last year, China outlawed crypto mining for this reason. Even Elon Musk has expressed concern about Bitcoin’s energy consumption.

Since mid-2021, however, the industry has made significant progress toward utilizing renewable energy for Bitcoin mining. VanEck Director Gabor Gurbacs slammed the EU, saying that if the EU is serious about reducing carbon emissions, they have a lot of other things to outlaw before Bitcoin.