'Bitcoin mining regulation bill' is rejected by the European Parliament

Regarding the regulatory package 'Markets in Crypto-Assets (MiCA)' that covers a wide range of themes related to cryptocurrencies submitted to the European Parliament, the consensus algorithm ' Proof of Work (PoW)' that is the basis of Bitcoin etc. ) ”Is removed.

Cryptocurrencies in the EU: new rules to boost benefits and curb threats | News | European Parliament
https://www.europarl.europa.eu/news/en/press-room/20220309IPR25162/cryptocurrencies-in-the-eu-new-rules-to-boost-benefits-and-curb-threats

Proposal Limiting Proof-of-Work Is Rejected in EU Parliament Committee Vote
https://www.coindesk.com/policy/2022/03/14/proposal-limiting-proof-of-work-is-rejected-in-eu-parliament-committee-vote-sources/

EU Parliament backs off plans to phase out energy-hungry cryptocurrencies --The Verge
https://www.theverge.com/2022/3/14/22977132/bitcoin-european-union-parliament-ban-proof-of-work-cryptocurrencies

MiCA is a regulatory framework consisting of 126 articles on cryptocurrencies such as major cryptocurrencies, stablecoins, mining and trading platforms, security tokens, and decentralized finance (DeFi), which the European Parliament has been discussing for some time. This MiCA vote was held on March 14, 2022, and the much-talked-about 'PoW Regulatory Clause' was rejected by a 23:30 opposition majority.

PoW is a consensus algorithm used by some virtual currencies such as Bitcoin, and is a system for connecting transactions to the blockchain . Virtual currency adopts a mechanism called mining that new issuance can be obtained according to the calculation processing speed, but PoW is said to be a mechanism with high calculation cost so that it is called 'a process that intentionally made energy efficiency worse'. I am.

The power consumed by Bitcoin mining that uses PoW is also described as 'national level', and in response to the growing awareness of environmental issues in recent years, the MiCA has included a regulatory law.

Cambridge University explains the power consumption of Bitcoin mining, which consumes national level power, in an easy-to-understand manner --GIGAZINE

Recently, Russia's gas supply suspension measures have accelerated energy insecurity, but the European Parliament has rejected the clause in question with a majority of opposition. However, it is expected that discussions will continue on virtual currency and environmental issues, and it will be considered separately so that it can receive the definition of 'sustainable investment'.

As mentioned above, the PoW regulatory clause was rejected, but MiCA itself was voted in favor of 31 to 4, and in the future, representatives of the European Parliament, the European Council and the European Commission will move toward legislation. A so-called ' three-party dialogue ' will be held for discussions.

Regarding the consensus algorithm of virtual currency, there is ' Proof of Stake (PoS)' which has a lower calculation load than PoW. Among virtual currencies, there is a precedent called Ethereum , which is promoting the transition from PoW to PoS with the aim of reducing power consumption, but for Bitcoin, which is treated as a representative, the investment cost of computing equipment invested so far etc. From this point of view, it is said that 'migration is virtually impossible'.