Cardano (ADA) Publishes Sustainability Indicators to Comply With Upcoming MiCA Regulations in the EU

In a proactive move, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), published sustainability indicators for the Cardano network.

Cardano Foundation Publishes Sustainability Indicators for Network Ahead of MiCA Regulation

In a proactive move to ensure compliance with the upcoming Markets in Crypto Assets (MiCA) regulations in the European Union (EU), the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has published sustainability indicators for the Cardano network. This initiative highlights Cardano's energy-efficient consensus protocol and underscores its commitment to a sustainable and transparent approach to cryptocurrency.

The report, published by the Cardano Foundation and CCRI, reveals that the crypto network operates on a consensus protocol that consumes significantly less electricity than proof-of-work (PoW) protocols. As of May 2024, the network's total annual electrical consumption was 704.91 MWh, a figure notably lower than that of PoW-based networks like Bitcoin.

Cardano's sustainability indicators comply with the regulatory technical standards (RTS) proposed by the European Securities and Markets Authority (ESMA) under the MiCA framework. These indicators cover energy use and greenhouse gas emissions, as well as waste production and the use of natural resources.

The Cardano Foundation has taken the lead in complying with MiCA sustainability indicators six months before the regulatory deadline, setting a new standard for the industry within the EU. Frederik Gregaard, CEO of the Cardano Foundation, stated that this initiative aims to ensure adherence to upcoming EU regulations and establish a benchmark for the crypto industry.

Cardano's initiative is a testament to how blockchain networks can address ESG concerns, particularly environmental impact, while maintaining transparency and efficiency. With the MiCA regulations coming into effect in December, affecting crypto asset service providers, ecosystems such as Cardano will be impacted.

The Cardano Foundation and CCRI's collaboration positions Cardano as a leader in adopting responsible and transparent practices, a move that could encourage broader adoption of blockchain technology in a sustainable manner, ultimately reinforcing the trust of regulators, investors, and users in the crypto industry.

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