In a recent development highlighting its commitment to regulatory compliance and sustainability, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has released an update on its compliance indicators aligned with the forthcoming Cryptoasset Markets Regulation (MiCA) in the European Union. The report was published on July 2, six months ahead of schedule, underscoring Cardano’s proactive stance and its role in setting new standards within the cryptocurrency industry.
According to the report, Cardano is ensuring adherence to MiCA’s requirement for crypto asset issuers and service providers to disclose sustainability metrics. The partnership with CCRI aims to uphold rigorous standards in monitoring and data collection methodologies within the blockchain ecosystem. Notably, Cardano operates on an energy-efficient consensus protocol, markedly reducing electricity consumption compared to traditional proof-of-work protocols like Bitcoin.
The report not only addresses energy consumption but also evaluates the blockchain’s carbon footprint and marginal energy demand per transaction per second, aligning with regulatory technical standards proposed by the European Securities and Markets Authority (ESMA) under MiCA’s consultation package.
The European Union stands out as a pioneer in digital asset regulation with MiCA, slated for full implementation by 2024. Initially proposed in September 2020 and ratified by the European Parliament in April 2023, MiCA signifies a pivotal step towards regulating digital assets in the financial landscape.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries inherent risks.
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