MiCA Crypto Alliance Teams Up with DSF to Nail Down Regulatory Compliance
The DLT Science Foundation (DSF) has announced its support
for the launch of the MiCA Crypto Alliance, which includes Hedera, Ripple, and
Aptos Foundation as founding members.
This new association aims to facilitate compliance with the
European Union’s Markets in Crypto-Assets (MiCA) regulation, set to take full
effect by the end of this year.
MiCA Demands Climate Disclosures
MiCA is designed to create a comprehensive regulatory
framework for the cryptocurrency market. It seeks to ensure transparency,
consumer protection, and market integrity. The regulation includes strict
disclosure requirements, particularly concerning the climate impact of crypto
operations, which must be detailed in publicly accessible white papers and
website descriptions.
Commenting on the launch of the Alliance, Paolo Tasca,
Founder & Chairman of the DSF, said: “The sustainability disclosure
requirements contained within the regulation are designed to drive climate
accountability from projects operating within this space and encourage the
responsible development of these powerful technologies.”
However, MiCA does not provide a standard template for these
disclosures, potentially leading to compliance issues for Crypto-Asset Service
Providers (CASPs). The MiCA Crypto Alliance aims to address this by
coordinating compliance among blockchain projects and CASPs. The alliance will
work to standardize white paper content and sustainability metrics, aiming to
simplify regulatory adherence.
“In addition to delivering exceptional data and
boosting interoperability across ecosystems, we believe that coordinated
efforts in standardising disclosure obligations are crucial for the long-term
success and credibility of Web3,” added Bashar Lazaar, Head of Grants &
Ecosystem at Aptos Foundation.
Hedera, Ripple, Aptos Support
As regulatory costs are expected to rise, with over a third
of crypto hedge funds anticipating increased legal and compliance expenses, the
MiCA Crypto Alliance provides resources to help mitigate these costs. Members
will have access to compliance tools, expert advice, and networking
opportunities.
Hedera will contribute expertise in sustainability metrics,
Ripple will focus on regulatory compliance through transparency, and Aptos
Foundation will support blockchain security and scalability. The DSF will offer
exclusive tools and resources to assist members in meeting MiCA requirements
and promoting high standards of compliance and sustainability within the
industry.
Lauren Weymouth, Director of University Partnerships at
Ripple, said: “This is a unique opportunity to promote collaboration
between the academic community and leaders in the digital assets space,
supporting sustainability best practices and regulatory compliance.”
This article was written by Tareq Sikder at www.financemagnates.com.