Ripple, Hedera, Aptos team up for MiCA compliance in EU and sustainability push News โธ EU โธ Regulation
Ripple, Hedera, Aptos team up for MiCA compliance in EU and sustainability push
The new MiCA Alliance was formed to standardize crypto regulatory disclosures and boost sustainability.
2 min read
Updated: Sep. 16, 2024 at 3:40 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The DLT Science Foundation (DSF) announced the launch of the MiCA Crypto Alliance on Sept. 16, with Hedera, Ripple, and the Aptos Foundation as founding members, according to a statement shared with CryptoSlate.
The Markets in Crypto Assets (MiCA) regulation, recently approved by the European Union, aims to create a regulated digital asset environment that protects crypto users while promoting innovation.
Standardized reporting
MiCA sets strict disclosure requirements for Crypto-Asset Service Providers (CASPs), including centralized exchanges. These providers must disclose the climate impact of their operations and must share this data through white papers and online descriptions accessible to the public.
Notably, the Cardano Foundation released the blockchain network’s sustainability indicators in July through a partnership with the Crypto Carbon Ratings Institute (CCRI).
However, the absence of a formal template poses challenges for CASPs, potentially leading to non-compliance.
The MiCA Crypto Alliance seeks to address this issue with the DSF as its technical partner. It aims to streamline compliance by coordinating efforts among major blockchain projects, foundations, and CASPs. The alliance hopes to simplify regulatory adherence and improve consistency by standardizing white paper content and sustainability indicators.
Members of the MiCA Crypto Alliance, including Hedera, Ripple, and the Aptos Foundation, will have access to exclusive sustainability metrics and AI-powered white paper generation tools provided by the DSF. These tools are designed to help members efficiently meet MiCA requirements and promote a higher standard of compliance and sustainability.
Dr. Paolo Tasca, Founder and Chairman of the DSF, stated that the sustainability disclosure requirements aim to drive climate accountability for projects and support responsible technological development. He added:
“In enabling the launch of the MiCA Crypto Alliance, we are committed to setting the standards for compliance with the regulation and providing projects with the tools and knowledge they need to thrive in this new landscape.”
Nilmini Rubin, Chief Policy Officer at Hedera, noted that the MiCA Crypto Alliance enables the network to collaborate with industry leaders to achieve shared goals. Rubin furthered that blockchain aims to enhance transparency and establish a cohesive regulatory framework that benefits consumers and the industry.
Bashar Lazaar, the Head of Grants & Ecosystem at Aptos Foundation, added:
“[The] coordinated efforts in standardising disclosure obligations are crucial for the long-term success and credibility of Web3.”
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Posted In: EU, Regulation
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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