DLT Science Foundation (DSF), a non-profit organization formed in 2023, has launched the MiCA Crypto Alliance in partnership with Ripple, Aptos Foundation, and Hedera. The initiative seeks to enable crypto entities to comply with the European Union’s Markets in Crypto Assets (MiCA) regulation.
According to a press release from DSF, the alliance will assist regulated crypto assets services providers (CASPs) in better complying with the EU crypto rules under the MiCA. They will enjoy access to shared resources, tools, and a global network of experts. European legislators passed the MiCA regulation in 2023, but part of it only became effective this year, and the full Act will become applicable until the end of 2024.
While the MiCA is seen by many as the much-needed regulatory clarity for the crypto industry in Europe, compliance for crypto entities in the region remains a major headache, particularly because there are no precedents. MiCA Alliance seeks to address this concern and reduce compliance costs.
According to the press release, over a third of crypto hedge funds anticipate rising legal and compliance costs due to market volatility and changing regulations. The MiCA Crypto Alliance invites blockchain innovators and exchanges to participate in this effort as its goal is to create a more standardized and compliant industry, lowering costs, increasing transparency, and promoting uniformity.
Meanwhile, the alliance’s founding members have welcomed the move, describing it as an opportunity for collaboration, innovation, and regulatory compliance. Bashar Lazaar, head of Grants and ecosystem at Aptos Foundation, said the alliance’s coordinated efforts are “crucial for the long-term success and credibility of Web.”
MiCA Alliance to create standardized templates for sustainability disclosures
One key resource the Alliance would provide is standard templates for crypto entities to comply with sustainability disclosures under the MiCA. The law allows CASPs to provide information on how the climate impacts their operations and requires that they publicly share such climate impact assessments on their websites and whitepapers.
However, no official template or guideline exists for how these entities must provide this information. The alliance will address this by developing standardized templates that any regulated crypto entity can adopt to disclose the climate impact assessment of their operations without flouting established rules.
According to DSF founder Dr. Paolo Tasca, MiCA represents a landmark regulation for regulatory clarity, and the Alliance seeks to set a standard for compliance with the law. He said of the sustainability disclosures:
“The sustainability disclosure requirements contained within the regulation are designed to drive climate accountability from projects operating within this space and encourage the responsible development of these powerful technologies.”
Meanwhile, the alliance is now calling on more members to join its fold, noting that the partnership of several notable crypto entities will benefit the Alliance and enable more regulatory trust and sustainable development in the industry.
Ireland Central Bank updates its expectations under MiCA
While crypto entities are preparing for compliance with the MiCA regulations, regulators are equally getting ready for enforcement by setting their expectations. The latest to do that is the Central Bank of Ireland, which explained to whom the new regulations will apply and the steps for the entities to be regulatory compliant.
According to the Bank, the law has already applied to issuers of Asset Reference Tokens (ARTs) and Electronic Money Tokens (EMT) since June 30 and will start applying to CASPS by year-end. It called on any entity that plans to trade or offer EMTs or ARTs to contact the Bank.
The regulator also explained its authorization process for CASPs, noting that this would include the pre-application stage, where the entity must engage with the Bank and submit its Key Fact Documents for review. Following this stage, approved applicants can submit their CASP authorization application form, which the Bank will review for completeness before assessing it and making a decision.
