MiCA, Sustainability and Compliance: Industry Collaboration in Action | EBC10

[Music] all right hello everyone you hear me well right fantastic so yes I am the chief of staff of the DT Science Foundation but today I'm coming here as the executive secretary of the Minka crypto Alliance an initiative that we are assembling for Minka compliance so yeah regulation exciting uh actually we had a panel on MAA earlier today uh lots of Interest this wouldn't have happened a um a few years ago really and there's something that really resonated with me uh in that panel so we were discussing how the industry I was not there I was just listening we're discussing how the industry should come together how we can collaborate uh that's what I I'm going to be talking to and uh there was this question to all the panelists what keeps you up at night and everybody had answers all the panelists had something that kept them up at night um they said oh this gives me up at night somebody would say well they agree with that but this other thing gives me out at night we are going to be talking about some of these things so hopefully some of you sleep better tonight unfortunately MAA is very very comprehensive I cannot tackle everything in 10 minutes really um we're going to be focusing on some of the MAA verticals so um MAA is very comprehensive that's why it's a leading uh regulation but if you think of maika what do you think of what is the one word you could summarize it as is probably licensing so when we think MAA we think a licensing regime how do we get this licenses how do I adapt this operations to that how do I get the Partnerships I need and when do I need it but that's not all MAA is MAA is also uh a regime that establishes other requirements and I want talk a bit about them so one of the requirements of MAA is that every crypto asset needs to have sustainability indicators another of these requirements is that every crypto asset needs to have a white paper so let's talk a bit about that what is a sustainability indicator can I just come up with that well actually there's 36 sustainability indicators required by Mika that's a lot of indicators we're talking energy carbon water uh ewaste intensity factors for all of these methodologies of course some of the indicators are optional some are mandatory but it's still a lot of work so who needs to collect this information and well pretty much everyone actually by the 30th of December of this year all the crypto asset service providers the casps they need to have a section in their website where you can have a file in a very specific format with all the 30 36 sustainability indicators so obviously that's hard um now white papers MAA also requires these white papers you may say well that's good I have a white paper we wrote One in 2016 but that's not the white paper uh it's another white paper that needs to be written it's basically a prospectus it was not supposed to be a prospectus but it has ended up looking very much like one it's around 400 fields document it has 10 to 12 chapters on everything about the crypto asset project so we're talking about the tokenomics the history the roadmap the team and yes the sustainability as well so you need the 36 indicators there too and that requires coordination because there's a lot of teams that need to come together to participate in writing the Y paper but there's also an issue of coordination across different crypto asset projects because you don't want to write your white paper in one way and see everybody else in the industry write their white papers in another way talk about risks you forgot to talk about use assumptions in the indicators that you didn't use or that make them look better just because they picked more favorable assumptions so we need to coordinate and there's another problem of coordination who writes the white paper so we have spoken with uh exchanges and uh they are telling us we are not going to write 250 white papers there's just no way we do that the layer ones the layer twos they need to write the white paper and send it to us so we go and speak with the layer ones and the layer twos and what they tell us is well it's almost something like what is M they know what m is but they're not even based in the EU many times they didn't think they had to write anything so they asked the legal teams do we have to write this really and legal team often says well we've looked at regulation we're not a person seeking admission to trading so doesn't look like it we don't need to write it but somebody should write it and they start asking well it would be nice if somebody wrote it we want our crypto asset to remain listed we want the white paper to be describing the crypto asset correctly fairly we want the crypto asset to be service so somebody needs to write it but nobody wants to be the one writing it so coming back to what I was saying at the beginning and what was mentioned in the previous panel we need to come together as an industry around these things and that's what we are inviting everybody to do as well so I just didn't know I hadn't shown the previous slides sorry we are launching an alliance that is open to the entire industry especially we're now focusing on onboarding layer ones layer twos exchanges very important we are speaking with lots of exchanges and um other casps we launched this last week and we are generating a lot of interest already so what are we going to be doing the alliance is an invitation to all of the industry to come together and establish best practices coordinate establish uniformity on how we do all of these things but there's a problem best practices are expensive so in a way you could say ah if I participate in this I end up increasing my own costs because then I I am obligating myself to do more that's where we come in as a Science Foundation we're supporting the alliance so we have been doing actually uh crypto sustainability research for many years and we are going to be giving uh the indicators for all of our members we have a data set of 300 plus crypto assets we have metrics on energy on Carbon on water uh on e-w so we are going to be giving this to the alliance members and we have written a number of white papers and in writing them we have noticed we could train an AI to do this so we did we taught the AI to do what we did the white papers that we've written with the legal reviews from Top from tier one law firms that have been helping us and we've managed to successfully train an AI to do this but that's not also that's not all that we're doing what we're doing is as I said before inviting the industry to come together so the alliance members they are going to be voting on uh the best practices and then we will retrain the AI and the AI will Implement whatever the members decide so whatever the members decide is a best practice they will be getting a white paper writing tool that doesn't for them and that is how we are trying to bring everybody together and help the regulator help the industry and Elevate the crypto uh space at large so I have uh my colleague vbec over here I'm also willing to talk with any one of you after the talk I know this might be very interesting for a crypto asset service providers because you need the sustainability data so happy to continue this uh conversation soon and um thank you very much