According to PANews, despite clarifications from the European Securities and Markets Authority (ESMA) on the ESG (Environmental, Social, and Governance) data disclosure requirements for Crypto Asset Service Providers (CASPs), over 80% of CASPs may still be unclear about the need to report ESG data from January 1, 2025. This was stated by Tim Zölitz, Chief Risk Officer at Crypto Risk Metrics. On Wednesday, Crypto Risk Metrics signed a Memorandum of Understanding (MoU) with the EU Crypto Asset Identifier Transparency Reporting Foundation DTI, aiming to collaborate on showcasing ESG data.
The Markets in Crypto Assets Regulation (MiCA), as the EU crypto asset regulatory provision, will take effect from 2023, setting licensing requirements for cryptocurrency issuers and service providers. MiCA requires Asset Reference Tokens (ARTs) and Electronic Money Tokens (EMTs) issuers to disclose sustainability information before June 30, 2024, and CASPs must start formulating disclosure requirements before the end of this year. However, there is still confusion about the correct deadline for ESG data disclosure. Some interpretations suggest that information only needs to be disclosed when the white paper is published (expected by the end of 2027). Zölitz pointed out that this stems from the wording of the MiCA regulatory text, which was clarified in consultation document number two. MiCA stipulates that trading platform operators must write, notify, and publish a white paper before December 31, 2027. ESMA further pointed out that crypto entities need to publish all relevant crypto asset information in a prominent position on the website, regardless of whether it can be obtained from the white paper. Zölitz emphasized that CASPs must display ESG data, regardless of whether the white paper is published.