The DSF announced its support for the formation of the MiCA Crypto Alliance, an industry group that includes Hedera, Ripple, and the Aptos Foundation as founding members.
The alliance focuses on promoting compliance with the upcoming Markets in Crypto-Assets (MiCA) regulation, which aims to create a more sustainable and compliant cryptocurrency ecosystem.
The European Union’s MiCA Regulation, which is expected to be fully implemented by the end of the year, provides a regulatory framework for the cryptocurrency market. It aims to ensure transparency, consumer protection and market integrity. As the cryptocurrency sector continues to evolve rapidly, the Regulation provides a basis for clearer operational standards, addressing concerns related to transparency, investor protection and cybersecurity.
Main aspects of MiCA regulation and its impact
The MiCA law introduces several governance and transparency requirements for crypto-asset service providers (CASPs), which include centralized exchanges and other regulated entities. In particular, it requires the disclosure of climate impacts associated with their operations.
This information must be made public through whitepapers and online documents. However, the lack of an official template for this information presents challenges, as CASPs are at risk of non-compliance. The MiCA Crypto Alliance, with technical support from the DSF, aims to coordinate compliance efforts and establish standardized whitepaper content and sustainability indicators, thereby simplifying the process for market participants.
With legal and compliance costs expected to increase due to market volatility and evolving regulations, the MiCA Crypto Alliance encourages participation from blockchain developers and exchanges. Members will benefit from shared resources including compliance tools, expert advice, and networking with other industry leaders.
When discussing the alliance, DSF officials said that the MiCA regulation marks an important milestone in the adoption of digital assets and decentralized technologies. They noted that the sustainability disclosure requirements under the regulation would incentivize projects to take climate responsibility seriously. Tasca emphasized that DSF is committed to helping the industry navigate these new regulations by providing the necessary tools and guidance.
Alliance members, including Hedera, Ripple, and the Aptos Foundation, will have access to tools developed by DSF, including sustainability metrics and AI-powered whitepaper generation solutions. These resources aim to streamline compliance with MiCA’s sustainability standards. Hedera will provide expertise in sustainability metrics, while Ripple’s focus on transparency will support efforts to ensure regulatory compliance. The Aptos Foundation will offer insights into blockchain security and scalability.
