How have Cardano MiCA Compliance Indicators been Updated Early?
In order to comply with the upcoming Markets in Crypto-Assets (MiCA) law in the European Union, the Cardano Foundation and the Crypto Carbon Ratings Institute (CCRI) jointly published sustainability metrics for the Cardano network. In accordance with MiCA’s demand that crypto asset issuers and service providers disclose sustainability metrics, the report was made public on July 2. The organization claims that in order to guarantee the caliber of its blockchain monitoring and data collection process, it collaborated with CCRI.
Setting Sustainability Standards in Crypto
According to the report, Cardano uses a consensus protocol that is more energy-efficient than proof-of-work methods, and it uses a lot less electricity overall. In addition, it offers the Cardano network’s total annualized electricity consumption, carbon footprint, and marginal power demand per transaction per second. According to Cardano Foundation CEO Frederik Gregaard, the organization hopes to establish a standard for the cryptocurrency sector as well as guarantee compliance with impending EU legislation by creating sustainability metrics that meet MiCA requirements.
With the MiCA regulations partially coming into effect this week, the industry is now on a six-month countdown to implement crucial ESG binding requirements,. As the crypto market matures and the MiCA regulations come into full effect, such efforts will be crucial in building trust with regulators, investors and users alike, paving the way for wider adoption of blockchain technology in a sustainable manner.
Gregaard
FAQ
What is MiCA?
MiCA is a regulatory framework regulated by the European Union that aims to regulate the cryptoassets market. This framework covers the rules governing the regulation and launch of crypto assets.
Why is Cardano’s MiCA Compliance Important for Investors?
MiCA compliance can help Cardano gain acceptance in regulated markets and among institutional investors. This can increase the value of the project and strengthen its long-term growth potential.
Why is it Important for Cardano to Update MiCA Compliance Indicators?
Cardano’s update of its MiCA compliance indicators demonstrates the platform’s ability to comply with European Union regulations. This could increase the adoption and use of Cardano in the European market.
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