Bitcoin Could Become Outlawed in Europe Following Anti-PoW Proposal
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The long-awaited final framework draft of the Markets in Crypto-Assets (MiCA), a cryptocurrency regulation package, came with a provision that forbade the “environmentally unsustainable” consensus mechanism tokens.
If it goes as planned, Bitcoin could become outlawed within the European Union from January 1, 2025. This means that businesses in the EU would be prohibited from offering services linked with proof-of-work cryptocurrencies.
Speaking to the press, Stefan Berger, the “center-right rapporteur” behind the circulating framework, noted that the proposal was “very likely” to gain approval. Also, the draft was supported by center-left Social Democrats, the Greens, and the Left Party.
While some Democrats and right-wing conservatives have expressed their displeasure about the addition of the Bitcoin ban, parties supporting the move to crack down on PoW operations have noted that it was a deal-breaker.
Meanwhile, the European Commission, the executive arm of the EU, is expected to hold talks with the member states and the Parliament on the matter before a final decision is taken on it later this year.
Commenting on the recent development, head of growth and strategy at decentralized finance startup Unstoppable Finance, Patrick Hansen, noted that the move was “suicidal,” asserting that it would expunge the entire cryptocurrency industry in the EU.
Key Bitcoin Levels to Watch — February 24
Bitcoin resumed its bearish descent on Thursday following the heightened risk-off mood across the financial markets over the military invasion of Ukraine by Russia. The benchmark cryptocurrency touched the $34,337 low in the Asian session on Thursday but immediately rebounded towards the $36K level after the support factor from the descending trendline acted on the price.
That said, market conditions are now well in bearish conditions, and subsequent sell-offs are expected to transpire in the near term. The primary cryptocurrency could record a bearish pull to the $33K support before the end of the week.
Meanwhile, my resistance levels are at $36,000, $37,500, and $38,500, and my key support levels are at $36,320, $36,000, and $35,000.
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