B2B assets platform Zumo has released a report from Davos on the industry’s readiness for the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation, focusing on sustainability requirements.
The report was released in Davos, Switzerland for the World Economic Forum’s (WEF) global event, where there are widespread discussions on the future of sustainable development, global economy, and innovation.
The report found that 75% of respondents were “very familiar” with the regulation, and less than a third say they are “knowledgeable” about sustainability disclosure requirements. On the challenges of complying with MiCA regulation, 50% of respondents stated that unclear regulatory requirements was the biggest obstacle, 38% pointed to the lack of resources to make those requirements, and 31% highlighted the lack of information available to comply.
Peter Kerstens, adviser at the European Commission, stated: “Sustainability of crypto-assets and in particular their validation protocols are a key policy concern. That is why MiCA contains disclosure requirements, aimed at informing consumers and investors on the relative sustainability of crypto-assets. They require sound information to make responsible decisions. CASPs should recognise this. They should not look at MiCA - be it the sustainability or other requirements - from a compliance perspective only. They should also, and preferably, look at it as an opportunity to access the EU-wide market.”
Zumo’s report also found that most respondents saw the greatest risk of non-compliance was reputational damage (75%), followed by loss of customers due o sanctions (69%), and loss of customer trust (31%).
Kirsteen Harrison, sustainability director, Zumo, commented: “Our report emphasises that sustainability policy outcomes are unlikely to be achieved without further regulatory engagement, and that’s why we have come to Davos to help drive greater collaboration between the industry and Europe’s regulatory bodies and policy makers. We’ve been working extremely hard to close the knowledge gaps that exist around MiCA, as well as helping crypto companies to better understand the broader sustainability agenda of which MiCA forms one part.
“By fostering dialogue, championing actionable steps, and providing new, accessible solutions, we are supporting the transition towards a more transparent, sustainable, and compliant crypto industry.”