Cardano Partners with CCRI to Launch Sustainability Indicators ahead of EU MiCA Regulations
Summary:
The Cardano Foundation has partnered with the Crypto Carbon Ratings Institute to create sustainability indicators for the Cardano network in line with the impending Markets in Crypto-Assets (MiCA) regulation in the European Union. The report highlights Cardano's lower energy consumption compared to proof-of-work protocols and its commitment to meet mandatory ESG requirements. CEO Frederik Gregaard believes this initiative shows how blockchain networks can address environmental concerns while ensuring transparency and efficiency.
The Cardano Foundation has partnered with the Crypto Carbon Ratings Institute (CCRI) to launch sustainability indicators for the Cardano network, in line with the imminent Markets in Crypto-Assets (MiCA) regulation in the European Union. The announcement, made on July 2nd, conforms to the MiCA regulations, requiring crypto asset issuers and service providers to disclose sustainability metrics. This rule applies directly to the Cardano Foundation, the authority managing the ADA (ADA) cryptocurrency. The Foundation collaborated with CCRI to ensure the accuracy of the blockchain monitoring and data gathering process. The joint report emphasized the efficiency of Cardano's consensus protocol, noting its lesser energy consumption compared to proof-of-work protocols. It also highlighted Cardano's annual electricity consumption, carbon footprint and the average power demand per transaction per second. Furthermore, the report includes sustainability metrics that align with the recently drafted regulatory technical standards by the European Securities and Markets Authority. Frederik Gregaard, CEO of the Cardano Foundation, expressed to Cointelegraph that by creating MiCA-compliant sustainability indicators, the foundation aims to abide by the upcoming EU regulations and set a standard for the crypto industry. He warned that with the MiCA regulations being partially implemented this week, the industry has a six-month timeframe to put mandatory ESG requirements into action. He opined that these efforts are essential in increasing trust from regulators, investors, and users, hence boosting the overall blockchain tech adoption in an eco-friendly manner. Gregaard believes this initiative displays how blockchain networks can alleviate ESG issues, specifically environmental impact, while maintaining transparency and efficiency. The initial stage of MiCA regulations came into effect on June 30th, mainly looking at stablecoins. In December, regulations will affect crypto asset service providers, which will have an impact on ecosystems like Cardano.
Published At
7/2/2024 9:30:00 AM
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