Cardano updates MiCA compliance indicators 6 months ahead of the curve


The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), released sustainability indicators for the Cardano network that will comply with the forthcoming Markets in Crypto-Assets (MiCA) regulation in the European Union. 

The report was released on July 2, adhering to MiCA’s mandate that crypto asset issuers and service providers disclose sustainability indicators — in this case, coming from the Cardano Foundation, which oversees the ADA (ADA) cryptocurrency.

MiCA compliance report

According to the foundation, it partnered with CCRI to ensure quality in its blockchain monitoring and data collection methodology.

The report stresses that Cardano runs on a more energy-efficient consensus protocol and consumes significantly less electricity than proof-of-work protocols.

It also provides the total annualized electricity consumption and carbon footprint of the Cardano network, along with the marginal power demand per transaction per second. 

Additionally, the report provides sustainability metrics that are in line with the draft regulatory technical standards from the European Securities and Markets Authority. 

Related: Paradigm calls on European markets regulator to show nuance regarding MEV

Successful industry compliance

Frederik Gregaard, CEO of the Cardano Foundation, told Cointelegraph that by developing MiCA-compliant sustainability indicators, the foundation wants to both ensure adherence to the upcoming EU regulations and set a benchmark for the crypto industry.

“With the MiCA regulations partially coming into effect this week, the industry is now on a six-month countdown to implement crucial ESG binding requirements,” he cautioned.

“As the crypto market matures and the MiCA regulations come into full effect, such efforts will be crucial in building trust with regulators, investors and users alike, paving the way for wider adoption of blockchain technology in a sustainable manner.”

Gregaard said this initiative is a demonstration of how blockchain networks can address ESG concerns, particularly environmental impact, while maintaining transparency and efficiency.

The initial phase of gradual regulations under the MiCA package came into effect on June 30, focusing on stablecoins. In December, regulations affecting crypto asset service providers will be introduced, impacting ecosystems such as Cardano.

Magazine: Crypto-Sec: Phishing scammer goes after Hedera users, address poisoner gets $70K