Scotland-based digital assets company Zumo is providing a new feature to inform crypto asset service providers (CASPs) on a Markets in Crypto Assets (MiCA) requirement flying under the radar.
Zumo’s Oxygen compliance model has been launched to help CASPs access MiCA-compliant sustainability metrics for the crypto assets listed on their sites and apps. The solution draws on best-in-class sustainability data from Crypto Carbon Ratings Institute (CCRI), one of Zumo’s strategic partners.
MiCA, set to be officially implemented in December, is Europe’s first crypto and digital asset slate of regulations that will inform relevant companies of the guidelines to abide by when it pertains to which assets are listed on their exchanges.
Zumo has highlighted however the need to inform of MiCA’s sustainability rules. Crypto and digital assets emit mass quantities of carbon and take a substantial amount of electricity to mint.
The Scottish digital asset company has been at the forefront of championing greener crypto solutions, such as its Oxygen proposition, introduced to help providers of crypto asset services better align their digital asset activities with net zero principles.
Nick Jones, Founder and CEO of Zumo, said: “MiCA’s sustainability requirements are going live to a tight deadline, and bring with them complex data questions as well as potentially hefty fines.
“It’s become clear that CASPs across Europe simply aren’t ready. In response, we’ve taken another important step on our sustainability journey to add the indicators that will enable service providers to comply with current and future sustainability compliance requirements.
“With our MiCA solution, CASPs will be able to access a single interface that helps them cut through all the complexity associated with pulling data together, formatting an appropriate template, and providing the output that ESMA is looking for.”
Recent industry research has suggested that more than 80% of CASPs may be unaware of the need to report environmental, social & governance (ESG) data from the MiCA deadline of 30 December.
As mandated in MiCA Article 66, CASPs – including exchanges, brokerages, custodians and trading firms – that are active or wish to provide their services in the EU, will need to have a compliant website disclosure covering the environmental impact of offered crypto-assets in place from 30 December 2024.
Failure to comply will risk a potential fine of at least €5m or 5% of a provider’s total annual turnover. Zumo’s new feature intends to help CASPs across the EU to streamline and simplify their sustainability compliance through auto-generated MiCA website disclosure reports.
