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After weeks of debate and deliberations, the European Union are all set to vote on the critical Markets in Crypto Assets (MiCA) bill. The MiCA bill has seen its fair share of ups and down and often been criticized for the content of the bill by the market participants.
However, now after modifying certain areas of the bill, the European Union lawmakers are all set to vote on the MiCA bill on 14 March, which could impact how crypto operations are taxed in the region. The European Union lawmakers, who had earlier decided to postpone the voting, following a change of heart on the cryptos. The earlier draft had reservations about crypto businesses, offering services through Proof-of-Work (PoW) consensus.
Also read: Why is Binance under the FCA’s scrutiny again?
However, in February, the European Union lawmakers unanimously decided to scrap that section of the MiCA bill, that would have deemed the PoW cryptos illegal, such as Bitcoin Ethereum.
Confirming the update through his Twitter account, Dr Stefan Berger, the member of parliament in charge of MiCA, confirmed that an independent discussion on the PoW will no longer be on the table. He added that it would make sense to consider cryptos like any other financial asset in the taxonomy area.
Cancelling critical paragraph of the bill
In February, the European Parliament had cancelled controversial paragraph 61 (9c) of the bill. The bill further stated that by 2025, crypto assets dubbed to be environmentally unsustainable would not be permitted. This resulted in contrasting emotions from various sections of the crypto industry forcing Dr Berger to postpone the vote to a later date. Dr Berger in the tweet further highlighted that the intention of the MiCA bill is to ensure that EU Parliament can lead by example in setting global standards.
Also read: Green Metaverse Token (GMT): Why is it drawing attention?
Conclusion
On 14 March, the EU can get a critical regulation on cryptos that will define the new regime of taxes. The MiCA bill will still have to go through the protocol of dialogue with the European Commission and the European Council.
Whether it will eventually become a law or not remains to be seen, but it would be crucial to see how cryptos are regularised on the backdrop of the Russia and Ukraine crisis. Therefore, the result of the vote will be keenly followed by the crypto enthusiasts and lawmakers all over the world.
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