- Leading blockchain innovators Hedera, Ripple, and Aptos Foundation are joining forces with the technical support from DSF to advance crypto-adoption and regulatory adherence.
- The alliance will launch standardised templates for sustainability disclosures to help crypto-asset service providers (CASPs) and regulated entities comply with the EU’s Markets in Crypto-Assets (MiCA) regulation.
- Members of the alliance will benefit from access to exclusive resources and support from industry leaders that will simplify compliance with the new regulatory standards.
LONDON, Sept. 18, 2024 /PRNewswire/ — The DLT Science Foundation (DSF) is proud to support the launch of the MiCA Crypto Alliance, with Hedera, Ripple and Aptos Foundation, as founding members. This groundbreaking association brings together some of the most influential players in the blockchain space, and is aimed at streamlining and enhancing compliance with the Markets in Crypto-Assets (MiCA) regulation, with a view to fostering a sustainable and compliant crypto ecosystem.
The Markets in Crypto-Assets (MiCA) regulation will be fully applicable by the end of this year and has been established by the European Union to provide a comprehensive regulatory framework for the crypto market, ensuring transparency, consumer protection, and market integrity. The cryptocurrency industry is in a state of rapid evolution, as global regulatory bodies recognise the urgent need for a solid framework that addresses the need for transparency, investor protection and cyber security. The MiCA regulation is being introduced at a critical time, providing much-needed clarity for the European market and fostering a more secure and dependable environment for cryptocurrency assets.
In addition to introducing well-publicised governance and transparency obligations, MiCA also introduces stringent sustainability-focused disclosure requirements that mandate Crypto-Asset Service Providers (CASPs), which include centralised exchanges and other regulated entities to share information about the climate impact of their operations, at the same time as promoting uniformity and standardisation. The regulation requires that this climate impact assessment be shared via publicly accessible white papers and website descriptions. However, the absence of an official template or guideline document for these communications risks leaving CASPs, which are subject to the disclosure requirements, potentially facing non-compliance through no fault of their own. The MiCA Crypto Alliance, with the DLT Science Foundation (DSF) as its technical partner, is a member-governed initiative that aims to solve this problem by coordinating compliance efforts among leading blockchain projects, blockchain foundations, and CASPs. By standardising white paper content and sustainability indicators, the MiCA Crypto Alliance seeks to ensure consistency and comparability, ultimately reducing the complexities associated with regulatory compliance.
With over a third of crypto hedge funds expecting increased legal and compliance costs in the near future1, largely due to market volatility and evolving regulatory environments, the MiCA Crypto Alliance encourages blockchain innovators and exchanges to participate in this new initiative aimed at fostering a more standardised and compliant industry that will help reduce these costs, increase transparency and promote uniformity. Members will gain access to shared resources, such as advanced compliance tools, expert advice, and networking opportunities with prominent figures in the industry.
Commenting on the launch of the Alliance, Dr. Paolo Tasca, Founder & Chairman of the DSF, said: “In bringing regulatory clarity to the blockchain sector, MiCA represents a significant step towards mass adoption of digital assets and decentralised technologies. 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. In enabling the launch of the MiCA Crypto Alliance, we are committed to setting the standards for compliance with the regulation and providing projects with the tools and knowledge they need to thrive in this new landscape.”
Members of the MiCA Crypto Alliance, including Hedera, Ripple, and Aptos Foundation, will have access to exclusive sustainability indicators and AI-powered white paper generation tools developed and provided by DSF. These resources are designed to help members meet MiCA requirements efficiently and effectively, promoting a high standard of compliance and sustainability within the industry.
Hedera, thanks to its unique consensus algorithm, will contribute its expertise in sustainability metrics, while Ripple’s strong commitment to transparency will help ensure regulatory compliance across the network. Finally, Aptos Foundation brings its experience in furthering blockchain-based security and scalability, further strengthening the alliance’s efforts.
Nilmini Rubin, Chief Policy Officer at Hedera, commented: “Becoming a founding member of the MiCA Crypto Alliance is a strategic move that allows us to collaborate with industry leaders, leveraging our combined expertise to achieve shared objectives. By partnering with other esteemed members, we aim to enhance transparency and establish a cohesive regulatory framework. Our goal is to develop a more efficient, transparent, and well-regulated environment that benefits consumers and the entire industry.”
Lauren Weymouth, Director, University Partnerships at Ripple, said: “Ripple is delighted to become a founding member of the MiCA Crypto Alliance. This is a unique opportunity to promote collaboration between the academic community and leaders in the digital assets space, supporting sustainability best practices and regulatory compliance. This underlines Ripple’s long-standing position as an advocate for industry regulation that protects consumers and provides clarity to enterprise, which is essential for the sustainable development of the crypto sector.”
“Aptos Foundation is honoured to be a founding member of the MiCA Crypto Alliance. In addition to delivering exceptional data and boosting interoperability across ecosystems, we believe that coordinated efforts in standardising disclosure obligations are crucial for the long-term success and credibility of Web3” added Bashar Lazaar, Head of Grants & Ecosystem at Aptos Foundation.
Prof. Dr. Dr. h.c. Roman Beck, member of the Steering Committee, MiCA Alliance and Head of the European Blockchain Center said: “At a time when transparency, compliance, and security are becoming increasingly important in the rapidly evolving blockchain and crypto landscape, the MiCA Crypto Alliance offers a unique opportunity to fill an existing gap to help organisations meet these regulatory requirements. The collaboration between some prominent names in the industry will not only foster trust among regulators and market participants but also pave the way for a more sustainable and scalable future for the industry.”
From today, the MiCA Crypto Alliance welcomes new applicants to join this alliance and partner with other members in their collective ambition to enhance transparency and foster a sustainable development of the crypto industry.
For more information on how to become a member, please visit www.micacryptoalliance.com or contact us at mica@dltscience.org.
About the DLT Science Foundation
The DLT Science Foundation (DSF) is a global leader in P2PFISY. DSF’s initiatives aim to build trust and discover truth within the blockchain industry, supporting the development of transparent and sustainable solutions.
About Hedera
Governed by a council of the world’s leading institutions, Hedera is a high-performance, secure, and sustainable public, permissioned DLT network. It enables seamless tokenization of real-world and digital assets with unmatched performance, security, and compliance. From regulated security tokens to NFTs, Hedera empowers the efficient creation of diverse asset types by providing enterprises and developers with robust open-source tools to unlock illiquid assets and drive the evolution of financial markets.
For more information, visit www.hedera.com, or follow us on Twitter at @Hedera Admin, Telegram at t.me/hederahashgraph, or Discord at www.hedera.com/discord. The Hedera whitepaper can be found at www.hedera.com/papers.
About Ripple
Ripple is the leading provider of digital asset infrastructure for financial institutions—delivering simple, compliant, reliable software that unlocks efficiencies, reduces friction, and enhances innovation in global finance. Ripple’s solutions leverage the XRP Ledger and its native digital asset, XRP, which was purpose-built to enable fast, low-cost, highly scalable transactions across developer and financial use cases. With a proven track record working with regulators and policymakers around the world, Ripple’s payments, custody and stablecoin solutions are pioneering the digital asset economy—building credibility and trust in enterprise blockchain. Together with customers, partners and the developer community, we are transforming the way the world creates, stores, manages and moves value.
About Aptos Foundation
Aptos Foundation is dedicated to supporting the development of the Aptos protocol, decentralised network and ecosystem and driving engagement with the Aptos ecosystem. By unlocking a blockchain with seamless usability, Aptos Foundation aims to bring the benefits of decentralisation to the masses.
1 PwC Global Crypto Hedge Fund Report, July 2023
Click on the names for more information on: Hedera, Ripple, and Aptos
SOURCE DLT Science Foundation (DSF)