Crypto Risk Metrics said that despite the clarification by the European Securities and Markets Authority (ESMA), many crypto entities may have misunderstood MiCA's sustainability disclosure deadline, according to CoinDesk. The environmental impact of cryptocurrencies, especially through mining operations, has been a major concern surrounding the industry. "We have a feeling that more than 80% of crypto asset service providers are not yet aware that they need to report ESG data (environmental, social and governance related data) from January 1, 2025," said Tim Zölitz, chief risk officer of Crypto Risk Metrics. On Wednesday, Zölitz's Crypto Risk Metrics signed a memorandum of understanding with the EU's proposed crypto asset identifier DTI Foundation to collaborate on displaying ESG-related data. However, issuers of asset reference tokens (ARTs) and electronic money tokens (EMTs) need to make sustainability disclosures from June 30, 2024, while crypto asset service providers need to start disclosure requirements by the end of the year, explained Rowan Varrall, deputy director of the DTI Foundation. Confusion about the correct deadline may be a matter of interpretation, despite specific clarifications from regulators.
