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Cardano sets benchmark with early MiCA compliance

Cardano sets benchmark with early MiCA compliance

  • Cardano updates MiCA compliance indicators six months ahead of regulatory deadline.
  • MiCA regulations focusing on stablecoins are already in effect since June 30.
  • However, the broader MiCA regulations impacting crypto asset service providers are set to roll out in December.

In a strategic move underscoring its commitment to regulatory compliance and sustainability, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has updated its MiCA (Markets in Crypto-Assets) compliance indicators.

This proactive measure, implemented six months ahead of the anticipated regulatory timeline, not only fortifies Cardano’s position in the market but also sets a new standard for the cryptocurrency industry. It highlights Cardano’s dedication to transparency, energy efficiency, and regulatory foresight.

Cardano pioneering MiCA regulatory compliance

By aligning its operations with the forthcoming MiCA regulations in the European Union, Cardano (ADA) continues to solidify its reputation as a forward-thinking blockchain network.

The MiCA regulation, aimed at ensuring transparency and sustainability in the crypto asset market, mandates that crypto issuers and service providers disclose their sustainability indicators. Cardano’s early adoption of these requirements demonstrates its leadership and commitment to regulatory adherence.

According to a MiCA compliance report released by the Cardano Foundation in partnership with CCRI on July 2, Cardano’s energy-efficient consensus protocol consumes significantly less electricity compared to proof-of-work protocols.

The report provides comprehensive data on Cardano’s total annualized electricity consumption, carbon footprint, and marginal power demand per transaction per second. These metrics align with the draft regulatory technical standards set forth by the European Securities and Markets Authority, positioning Cardano well ahead of its peers in regulatory readiness.

Frederik Gregaard, CEO of the Cardano Foundation, emphasized that developing MiCA-compliant sustainability indicators is crucial for building trust with regulators, investors, and users.

By taking these steps, Cardano not only ensures adherence to the upcoming EU regulations but also sets a benchmark for the broader crypto industry.

Gregaard highlighted the importance of such efforts in paving the way for…

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