Zumo has made a significant stride in regulatory compliance by incorporating MiCA-compliant sustainability metrics into its Oxygen product.
According to Finextra, as the deadline for the Markets in Crypto-Assets (MiCA) regulation approaches on 30 December 2024, Zumo’s latest update enables crypto-asset service providers (CASPs) in the European Union to meet new sustainability indicator requirements mandated by the European Securities and Markets Authority (ESMA).
These indicators focus on the environmental impacts of crypto-assets, a critical area that, according to recent industry research, has been overlooked by over 80% of CASPs.
The new compliance module from Zumo draws on data from the Crypto Carbon Ratings Institute (CCRI), enhancing the Oxygen product that originally aimed to align crypto-asset services with net zero principles. This development is part of Zumo’s ongoing commitment to driving sustainability in the digital assets sector.
Nick Jones, founder and CEO of Zumo, emphasized the urgency and complexity of the new requirements, stating, “MiCA’s sustainability requirements are going live to a tight deadline, and bring with them complex data questions as well as potentially hefty fines.” He also noted the lack of readiness among CASPs across Europe and expressed that Zumo’s enhanced offering simplifies the compliance process through a single interface that manages data aggregation, report formatting, and ESMA compliance.
The potential fines for non-compliance could reach a minimum of 5 million euros or 5% of a provider’s total annual turnover, making it imperative for CASPs to adopt compliant solutions swiftly.
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