- The MICA regulation of the European Union on markets for cryptocurrencies has introduced a comprehensive framework for monitoring the security of the crypto sector.
- Bitcoin-Miner can now continue to secure the network without additional reporting obligations that could have complicated its business models.
The European Securities and Market Authority (ESMA) has Bitcoin (BTC) -Miner and Proof-of-Stake (POS) validator from the Reporting for Market abuse As part of the EU Ordinance on Major Mountains (Mica) freed. This decision marks an important distinction between providers of crypto-asset services (CASPS), such as stock exchanges that have to comply with strict regulations, and miners and validists who primarily facilitate blockchain transactions and are not directly involved in commercial activities.
In December 2024, ESMA set its point of view which companies fall among people who arrange or carry out transactions professionally (PPAETS). Originally there was uncertainty as to whether miners, validers, builder and Searcher have to monitor and report suspicious activities on the cryptoma markets.
However, ESMA officially excluded these groups from the PPAET classification and ensured that they are not obliged to pursue market abuse. Instead, casps such as cryptocurrency exchanges will be responsible for market surveillance and compliance.
Patrick Hansen, director of EU strategy and policy at Circle, praised the Esma for their balanced approach in regulation. He explained: “An important decision by the ESMA. And it is easy to see that it has taken into account and emphasis the potential negative effects for the industry and the EU, how another decision could have made these miners/validers to leave or avoid the EU to settle down in the EU and shift innovations abroad. “
The global shift in Bitcoin mining
Despite his positioning as a pro crypto president, Donald Trump’s trade policy has hurdles for Bitcoin-Miner in the USA created. A big concern for the Bitcoin miners based in the USA are Effects of tariffs On Chinese imports. While these tariffs were to protect American industry, they have raised the costs of mining hardware, an important component of the Bitcoin mining operation.
The Bitcoin mining depends on application-specific integrated circuits (ASICS), which were specially developed for mining digital assets such as Bitcoin. However, almost 98 % of the ASIC miners are produced by Chinese manufacturers such as Bitmain, Microbt and Canaan. Due to the tariffs for Chinese technology imports, US mining companies are faced with higher costs and possible interruptions of the supply chain, which makes it more difficult to scale and remain competitive on the global market.
While some countries issue stricter regulations, Belarus has a different path. President Alexander Lukaschenko Has asked the officials to improve the country’s energy infrastructure and to use the mining of cryptocurrencies as a way to use excess electricity and at the same time attract foreign investments. With an oversupply of electricity, Belarus positions itself as a crypto-mining-friendly nation.
Government officers were commissioned to tighten the regulations and to develop concrete proposals to promote investments in this sector. This strategy could help Belarus compete with other nations in the global crypto mining industry. In addition, the Russian State Duma has passed a law that legalizes Bitcoin mining and allowed the use of cryptocurrencies in international trade.
As reported in our 2024 reportthe law was passed with 404 votes in favor, which corresponds to 89.8 % of the total number of votes. This change in law signals the intention of integrating cryptocurrencies into its broader economic and trade strategies.
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