The latest European Union (EU) legislation has proposed a legal framework for regulating cryptocurrencies, Markets in Crypto Assets (MiCA), with provisions that can restrict its use. Proof-of-work cryptocurrencies
Proof-of-work is an energy-intensive consensus mechanism. which is used by Popular cryptocurrencies such as bitcoin and ether, by the way, have been heavily scrutinized by EU lawmakers on energy concerns.
The previous draft of the MiCA framework contained heavily worded provisions proposing to ban crypto services based on unsustainable consensus mechanisms. It started in January 2025 but was later cancelled.
Dr Stefan Berger, a member of the EU parliament overseeing the MiCA’s legislative framework, said at the time the problematic paragraph was removed. But no final decision has yet been made.
new law which reviewed by CoinDesk have similar requirements. Although greatly reduced from the original, stating thatCrypto assets “must meet minimum environmental sustainability standards. regarding the consensus mechanism used for the verification of transactions prior to issuing, offering or accepting trading in the EU.”
If the Proof-of-Work consensus mechanism operates on a small scale, it is exempt from meeting the required sustainability standards.
But it also said that energy-intensive crypto assets that were already in use in the EU before the law came into force must “form and maintain a gradual launch plan. to ensure compliance with such requirements.”
Although Ethereum plans to move from proof-of-work to proof-of-stake But it is unknown when this will happen, including Bitcoin, where the mining industry is still heavily reliant on traditional energy sources. thus making it the main digital currency. There are risks under the new offer.
The crypto community quickly responded. It calls on EU citizens to immediately contact their parliamentarians to oppose the measure.
Hardware wallet provider Ledger released a statement saying:
“People and organizations should have the freedom to choose the technology that best suits their needs. Policy makers should not dictate or discriminate on which technology to support. This is a serious concern and will have serious consequences for Europe.”
Pierre Person, Legislator in Paris and Member of the Legislative Commission It condemned the requirement on Twitter, citing the impact the regulation would have on Europe’s competitiveness in its growing crypto ecosystem.
European Union Parliament Vote for the MiCA on March 14
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