Like the United States, Europe may soon present a new regulatory framework for cryptoassets. However, digital currencies such as bitcoin and the Ethereum network’s ether may be banned from the bloc of countries that defend sustainability in the crypto market.
According to Bloomberg, Europe is preparing a document on cryptoasset that defines more precise rules for the sector involving the concept of sustainability. If approved, the new regulatory framework may hinder the use of some digital currencies in the region.
“(Cryptoassets) will be subject to minimum environmental sustainability standards and will establish and maintain a phased implementation plan to ensure compliance”.
In other words, cryptoassets that rely on data mining could be severely affected by the new jurisdiction. Seeking to promote sustainability in the crypto market as well, the new European regulatory framework may affect projects that use the proof-of-work (PoW) consensus mechanism in transactions.
Bitcoin and ether banned
Bitcoin and ether are the leading cryptocurrencies that use this protocol to validate their transactions on the blockchain network. As a result, experts point out that new European legislation may ban these digital currencies.
According to EU parliamentarian and crypto expert Stefan Berger, the concept of proof of work had not been mentioned in the first draft of Europe’s regulatory framework for cryptoassets.
The member of the European Parliament says that it was recently included in the document, and the draft legislation may be voted on as early as Monday (14) by the Committee on Economic and Monetary Affairs.
