Zumo Unveils Compliance Solution For EU Crypto Firms Ahead Of MiCA Regulations

Zumo, a provider of B2B digital assets infrastructure, has introduced a new feature to assist crypto-asset service providers (CASPs) in the European Union (EU) in meeting the sustainability requirements mandated by the Markets in Crypto-Assets (MiCA) regulation.

MiCA was developed to establish uniform regulations for crypto-assets across the EU. It includes a requirement that has not received much attention: the need for CASPs to disclose the environmental impact of their offered crypto-assets.

Zumo’s solution aims to address the new environmental sustainability indicators that many CASPs may be unprepared for, as outlined by the European Securities and Markets Authority (ESMA), according to a report by FF News .

🚨 BREAKING: MiCA is now live! 🇪🇺

From June 30th crypto exchanges and stablecoin issuers will operate in the EU according to the rules provided for by the MiCA law!

Most of the stablecoins don’t fulfill all necessary regulations but #Ripple stablecoin ‚RLUSD‘ will do!… pic.twitter.com/jxzfNpEyVs

— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) June 30, 2024

EXPLORE:  EU Watchdog Warns Crypto Firms of Offshore Risks Under MiCA

Over 80% CASPs Are Unaware Of New Requirements

Recent research suggests that over 80% of CASPs are unaware of the need to report Environmental, Social, and Governance (ESG) data. This will be mandatory from 30 December 2024.

Failure to comply with MiCA could result in substantial penalties. It  includes fines of at least 5 million euros or 5% of a company’s annual turnover, as stipulated in MiCA Article 66.

To help CASPs navigate these challenges, Zumo has launched the Oxygen MiCA compliance module. Its is a tool that provides easy access to MiCA-compliant sustainability metrics for listed crypto-assets.

This module integrates data from the Crypto Carbon Ratings Institute (CCRI), one of Zumo’s strategic partners. Furthermore, it builds on the company’s existing Oxygen proposition, which was originally designed to align digital asset activities with net zero principles.

The new feature aims to streamline and simplify sustainability compliance for CASPs across the EU. It plans to do so by offering auto-generated MiCA website disclosure reports.

This will allow CASPs to focus on core operations, while ensuring they meet the stringent requirements set out by ESMA.

“MiCA’s sustainability requirements are coming into effect under a tight deadline and pose complex data challenges, as well as potentially hefty fines,” said Nick Jones, Founder and CEO of Zumo.

“Our MiCA solution offers a single interface that simplifies the process of gathering, formatting, and presenting the required data for compliance.”

EXPLORE:  8 Methods to Buy Bitcoin With PayPal Instantly in 2024

Zumo Gains Recognition for Sustainability in Digital Assets

Zumo is recognized as a pioneer in sustainability within the digital assets industry. Also, the company was a member of the World Economic Forum’s Crypto Sustainability Coalition.

Furthermore, Zumo recently signed the Abu Dhabi Sustainable Finance Declaration.

The company co-founded the Emerging Technologies Sustainability Taskforce (ETST), which aims to develop standards for sustainability in emerging technologies such as blockchain.

It has also achieved numerous awards, including the Fintech Finance Awards, the City AM Awards, and the Scottish Financial Technology Awards.

EXPLORE:  How to Buy Bitcoin in Dubai, UAE

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.