Environmental Sustainability a Focal Point in EU MiCA Bill Vote

A line relating to environmental sustainability was added back into the European Union’s MiCA bill. It is believed that this could be problematic for cryptocurrency miners in the region.

Members of the European Parliamentary Committee on Markets in Crypto Assets (MiCA) will be meeting today. The outcome of the voting that will take place at the meeting today could have an impact on the legal standing of Bitcoin – and other cryptocurrency – mining in the EU.

The line “minimum environmental sustainability” is a controversial line that relates to cryptocurrency mining, and has been reintroduced to the bill after it was previously removed.

The new line would require blockchain miners to submit a rollout plan detailing how they intend to comply with environmental sustainability measures. Failure to submit a plan may prohibit mineable coins from being mined or traded in the EU.

Even though it is not specifically stated, the bill will directly affect Proof of Work blockchains. Proof of Work is one of the oldest consensus mechanisms used in blockchains and is used by the Bitcoin network, Ethereum, and several other notable blockchain projects.

The EU accounts for approximately 12-14% of the global computing power on the Bitcoin network, with Germany and Ireland contributing the majority of that computing power, according to data from Cambridge University and Statista.

Concerns over the collective energy consumption and carbon emissions of Bitcoin miners are the main catalysts for the debate over how the EU should regulate it. If the bill is passed as-is, then Ethereum will not be affected for long as the network migrates to a Proof of Stake consensus mechanism instead. However, Bitcoin miners may experience serious ramifications.