Risk Analyst: More than 80% of EU crypto entities are not aware of the need to report ESG data from January 1, 2025

According to Coindesk, on June 26, Tim Zölitz, chief risk officer of Crypto Risk Metrics, said that despite the clear instructions from the European Securities and Markets Authority (ESMA), many EU crypto asset service providers (CASPS) may have misunderstood the deadline for sustainability disclosures under the MiCA Act.

The survey shows that more than 80% of CASPS are not aware that they need to report environmental, social and governance (ESG) related data from January 1, 2025. The MiCA bill requires issuers of asset-referenced tokens and electronic money tokens to make sustainability disclosures from June 30, 2024, and CASPS must begin to comply with the disclosure requirements by the end of the year.

Zölitz explained that although regulations require disclosure of environmental impacts in a white paper, ESMA made it clear in the consultation document that crypto entities need to provide this information prominently on their websites.