EU Parliament votes against Bitcoin ban

A committee of the European Parliament has voted on a new regulatory framework for crypto assets. A ban on energy-intensive cryptocurrencies is therefore off the table for the time being. Bitcoin fans are relieved.

Cryptocurrencies such as Bitcoin are created in d the so-called "mining" or "mining" process. This process, called the proof-of-work mechanism, requires enormous computing power and thus energy. Every year, Bitcoin causes between 22 and 22.9 million tons of CO₂ emissions. 

This corresponds to the greenhouse gas emissions of Kansas City or a small country like Jordan. These values were calculated by researchers from MIT and the Technical University of Munich. On March 14, the EU Parliament therefore asked itself an important question: Should the trade in the cryptocurrency Bitcoin be banned in the European Union?

Bitcoin ban rejected

Representatives of the crypto industry can breathe a sigh of relief: A narrow majority of members of the Economic and Monetary Affairs Committee have spoken out against a de facto ban on the so-called proof-of-work mechanism. 32 deputies voted for an alternative motion without a ban, 24 were against, three deputies abstained.

That's what the regulations were about

Specifically, it was about banning crypto assets that are issued or traded in the EU if they do not meet the "minimum standards for environmental sustainability". This is stated in the draft law, from which the US news portal Bloomberg quotes.

These crypto assets would have to "establish a phased adoption plan" and execute it to "ensure compliance with these requirements." In the alternative proof-of-stake process, only a fraction of the energy is used. Among others, cryptocurrencies such as Cardano, Polkadot, Solana and Ethereum 2.0 use this process. These currencies would therefore be exempt from a ban. However, such a change in Bitcoin would not be possible. The popular currency would therefore have been directly affected by EU rules.

"Rescue on the last meters"

If there had been a ban, well-known crypto exchanges such as Bitpanda, Bison or Coinbase would not have been allowed to offer Bitcoins in the EU. According to FDP member of parliament Frank Schäffler, such a ban would have been "deadly for all the innovative potential of blockchain in Europe". Schäffler has been dealing with crypto currencies for years and called the result a "rescue on the last meters".