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The MiCA regulation imposes new environmental sustainability disclosure obligations for crypto companies in Europe. However, many entities seem to misinterpret the set deadlines, which could lead to significant regulatory consequences.
The confusion of crypto companies about disclosure deadlines
Many crypto companies within the European Union seem to be in the dark about the imposed deadlines for sustainability information disclosure, despite clarifications provided by regulators. According to Tim Zölitz, risk director at Crypto Risk Metrics, a large majority of crypto asset service providers are unaware that ESG (Environmental, Social, and Governance) data disclosure must begin on January 1, 2025. This confusion could stem from a misinterpretation of the regulations, where some mistakenly believe that transparency obligations only come into effect with the publication of white papers on crypto assets, scheduled for 2027.
Despite the clarifications from the European Securities and Markets Authority (ESMA), many of these entities are still unaware of the exact requirements. Crypto Risk Metrics recently signed a memorandum of understanding with the Digital Token Identifier (DTI) Foundation to collaborate on displaying ESG data. This initiative aims to improve transparency and help crypto asset service providers comply with new regulations. However, the environmental impact of crypto activities, particularly mining, remains a significant concern, potentially hindering broader adoption of these assets. The industry must adapt quickly to avoid potential sanctions and promote sustainable growth.
Clarifications and Consequences
The MiCA rules, established to regulate the crypto asset market in Europe, impose strict environmental transparency requirements. According to the guidelines, issuers of asset-referenced tokens (ART) and e-money tokens (EMT) must start disclosing their environmental impacts by June 30, 2024. Additionally, all crypto asset service providers must comply with ESG disclosure requirements by the end of the year. However, this obligation has often been misunderstood, with some industry players incorrectly believing that these disclosures were only required with the publication of white papers, set for 2027.
This misinterpretation partly originates from the initial wording of the MiCA law, which was later clarified by the European Securities and Markets Authority (ESMA). In a consultation document, ESMA specified that information on environmental impacts must be published on the entities’ websites, regardless of white papers. This clarification aims to eliminate any ambiguity, but there are still grey areas.
Exchange platform operators must also ensure that this information is accessible in a clear and visible manner. Non-compliance could not only lead to regulatory sanctions but also tarnish the reputation of crypto companies, thereby hindering the adoption of these assets by major institutional investors who are environmentally conscious.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
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