Regulation
Cardano advances MiCA compliance with this innovation!
Wed 03 Jul 2024 ▪ 3 min read ▪ by Eddy S.
In a proactive move, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has published sustainability indicators for the Cardano network. This ensures compliance with the upcoming MiCA regulations in the EU. This initiative highlights Cardano’s energy-efficient consensus protocol and underscores its commitment to a sustainable and transparent approach to cryptocurrency.
Indicators in view of MiCA regulation
The report published by the Cardano Foundation and CCRI reveals that the crypto network operates on a consensus protocol. This protocol consumes significantly less electricity than proof-of-work (PoW) protocols. As of May 2024, the total annual electricity consumption of the network was 704.91 MWh. A figure well below that of PoW-based networks like Bitcoin.
Cardano’s sustainability indicators are compliant with the Regulatory Technical Standards (RTS) proposed by ESMA under the MiCA framework. These indicators cover energy use and greenhouse gas emissions, as well as waste generation and use of natural resources.
Implications for the cryptocurrency industry
The Cardano Foundation has taken the lead in complying with the MiCA sustainability indicators six months ahead of the regulatory deadline. It therefore establishes a new standard for the industry within the European Union. Frederik Gregaard, CEO of the Cardano Foundation, said that this initiative aims to ensure compliance with upcoming EU regulations and set a benchmark for the cryptocurrency industry.
Cardano’s initiative is a demonstration of how blockchain networks can address ESG concerns! Specifically, environmental impact, while maintaining transparency and efficiency. With the MiCA regulations coming into force in December, which affect cryptocurrency service providers, ecosystems like Cardano will be affected.
The Cardano Foundation and CCRI have taken a significant step towards sustainability and regulatory compliance. This positions Cardano as a leader in adopting responsible and transparent practices. This could well encourage wider adoption of blockchain technology in a sustainable way! Thus strengthening trust of the regulatorsinvestors and users in the cryptocurrency industry.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this wavy universe. Community manager of basic cryptocurrencies, I am interested in everything that concerns blockchain and its derivatives, whether close or far away. With a view to sharing my experience and making known a sector that I am passionate about, nothing better than writing informative and non-contractual articles at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.