Bitcoin, Ethereum and other cryptocurrencies are not being banned in the European Union countries. The bloc's committee lately rejected the draft rules mentioning such restrictions. The proposal was voted down and proper regulation of the segment is on the card.
It was argued that Bitcoin and Ethereum use intensive energy for the mining process of proof-of-work. Thirty members voted against it while 23 voted for the amendment of the Markets in Crypto Assets framework.
The favoring vote is a win for cryptocurrency enthusiasts as they had strongly opposed the proposal that looked for meeting sustainability standards. Unstoppable Defi crypto company head of strategy, Patrick Hansen, welcomed the voting result saying it is a big relief to the community.
A day before, Crypto UK head Ian Taylor warned existential threat is being hovered over Defi, NFTs, Ethereum and Bitcoin. With the voting move, he said it is a relief to them.
Bitcoin and Ethereum miners use powerful computers to work on proof-of-work and the process requires immense energy to solveÂ complex puzzles while verifying transactions as well as mine new crypto coins.
Currently, the total energy being consumed by the Bitcoin environment is more than 130 TWh per year and this is a major concern for the regulators.
European Union is a bloc of 27 member states in Europe equipped with a population of about 447 million. It is an internal single market following standardized laws for all the member states. Its policy ensures the free movement of goods, services, capital and people in the bloc. The United Kingdom has left the bloc and it was effective from February 2020.
Cryptocurrency is a digital currency and is considered a medium of exchange via a network of computers. It has no physical form and is based on blockchain technology. Bitcoin was the first crypto coin launched in 2009. It was followed by a couple of more crypto coins including Ethereum and Dogecoin. Today, thousands of such digital currencies exist.
It is a decentralized segment and not under the control of any government or central authority. The use of crypto coins is controversial. Several countries including China have put a ban on it. However, El Salvador announced in June 2021 to accept Bitcoin as legal tender. Cuba is learned to be following the same and recognize the digital coin as its legal tender.
The world is divided over the use of cryptocurrencies and the United States lately announced to be coming up with regulations for the segment.