Key Highlights

• MiCAR Compliance Needs: As trading platforms and offerors face the challenges of MiCAR compliance, Coinbase will have access to our comprehensive full-service solution to ensure adherence to regulatory requirements, especially when it comes to white papers – especially regarding White Papers.

• Expert Insights: Tim Zölitz, CEO of Crypto Risk Metrics, shares: “After ESMA’s statement on the provision of certain crypto-asset services in relation to non-MiCA compliant ARTs and EMTs, we conducted a thorough investigation of the legal requirements together with the law firm DLA Piper. This resulted in us building a specialized product for white paper compliance for the industry, which is backed by insurance from a leading German insurer with a Standard & Poor’s rating of A+. By relying on our services, we help CASPs to stay compliant, contribute to investor protection, and help avoid friction in the market.”

• Regulatory Context: ESMA’s public statement clarified the expectations for companies regarding non-compliant assets under MiCAR. It emphasized that entities involved in the reception and transmission of orders, execution of orders for crypto-assets on behalf of clients, and exchange of crypto-assets for funds or other crypto assets must cease offering non-compliant assets to the public.

Source: Press release Crypto Risk Metrics

Explore Crypto Risk Metrics’ latest projects and partnerships in MiCAR white paper compliance:

• First Insured Bitcoin White Paper to Comply with MiCAR: Blockrise Chooses Crypto Risk Metrics
• Finoa Partners with Crypto Risk Metrics to Simplify MiCAR White Paper Compliance

The post Crypto Risk Metrics Has Onboarded Coinbase for MiCAR White Paper Compliance appeared first on Crypto Risk Metrics | Crypto Risk Management.

Jos Lazet, CEO of Blockrise, explains: “We are positioning ourselves as the gold standard for Bitcoin asset management – which of course comes with the duty to adhere to the respective rules and regulations at all times. With the arrival of these new regulations, we needed MiCAR-compliant white papers as we offer crypto-asset services to our clients. We are happy that Crypto Risk Metrics is able to provide them for us.”

By relying on the white papers from Crypto Risk Metrics, Blockrise chose the only supplier who offers insurable white papers, enhancing consumer protection even further. 

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “After the ESMA statement came out, we conducted a thorough investigation of the legal requirements with legal firm DLA Piper, both on the CASP and on our side. This resulted in us building a specialized product for white paper compliance for the industry, which is insurable by a leading German insurer with a Standard & Poor’s rating of A+, as this seems very much needed in order to avoid friction in the market. By relying on our services, we contribute to investor protection, while at the same time helping the CASPs to stay compliant and minimize liability risks.” 

ESMA’s public statement addressed the expectation from the regulator when it comes to non-compliant assets under MiCAR and the interpretation of “offering” a crypto asset. It was made clear that companies providing reception and transmission of orders, execution of orders for crypto-assets on behalf of clients, and exchange of crypto-assets for funds or other crypto-assets would also be expected to ceise offering non-compliant assets to the public.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Finoa Partners with Crypto Risk Metrics to Simplify MiCAR White Paper Compliance
• flatexDEGIRO BANK AG Chooses Crypto Risk Metrics for Crypto ESG Data
• Clearstream Selects Crypto Risk Metrics as ESG Data Provider for Crypto-Assets
• Goobit Relies on ESG Crypto Data from Crypto Risk Metrics
• AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance

The post First Insured Bitcoin White Paper to Comply with MiCAR: Blockrise Chooses Crypto Risk Metrics  appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, June 17th, 2025. Finoa, a leading European regulated digital asset custodian, today announced a partnership with Crypto Risk Metrics to offer clients expert services for MiCAR-compliant white papers. This addresses new EU regulations which have been in force since December 30th, 2024.

Projects offering crypto-assets in the EU must now meet strict white paper standards to gain access to European exchanges. Non-compliance may prevent market access to over 450 million consumers across the EU.

The Markets in Crypto-Assets Regulation (MiCAR) mandates specific white paper requirements for listing on European exchanges. The collaboration* between Finoa and Crypto Risk Metrics aims to simplify the process for institutional and project clients.

“Partnering with Crypto Risk Metrics allows us to offer clients a crucial piece for access to EU customers,” said Christopher May, Co-Founder of Finoa. “Meeting MiCAR’s white paper requirement is essential for every project.”

Tim Zölitz, CEO of Crypto Risk Metrics, stated, “Finoa is involved early with token projects often in testnet phases. Our service helps them meet regulatory requirements for EU listings right when their token goes live – enhancing consumer protection.”

The services will range from targeted assistance (e.g., ESG disclosures) to comprehensive “white glove” support, including updates to the ESMA registry.

*The white paper service is provided by Crypto Risk Metrics and is an optional service for clients choosing Finoa as their custodian. It consists of different packages and can range from help regarding the ESG part only to a complete „white glove” service, including monitoring of material updates and the corresponding updates in the ESMA registry.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• flatexDEGIRO BANK AG Chooses Crypto Risk Metrics for Crypto ESG Data
• Clearstream Selects Crypto Risk Metrics as ESG Data Provider for Crypto-Assets
• Goobit Relies on ESG Crypto Data from Crypto Risk Metrics
• AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance

The post Finoa Partners with Crypto Risk Metrics to Simplify MiCAR White Paper Compliance appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, June 2nd, 2025: With flatexDEGIRO, Crypto Risk Metrics expands its customer portfolio to include one of the most prominent players in the European online brokerage market. After an intense selection process, flatexDEGIRO decides to obtain the sustainability indicators from Crypto Risk Metrics.

Florian Kulla, Co-Head Markets, explains: “As flatexDEGIRO, we have been operating in a regulated environment for years and place a high value on appropriate standards. Especially the combination of compliance and ESG is particularly sensitive in the context of the selection process, because we naturally do not want to face accusations of greenwashing. Accordingly, we have carefully evaluated which provider can meet our standards and are pleased to have Crypto Risk Metrics as the right partner at our side.”

Tim Zölitz, CEO of Crypto Risk Metrics adds: “We are proud that an established company like flatexDEGIRO relies on us and that our approach has been confirmed once again. With this approval, we continue to pursue our commitment to quality and maximum compliance without compromise or conflict of interest.” The Markets in Crypto Assets Regulation requires crypto asset service providers to report various ESG metrics from December 30, 2024. As the leading data provider in this field, Crypto Risk Metrics is for example the exclusive ESG data provider of the ISO 24165 registration authority for Digital Token Identifier Foundation, and cooperates with data providers such as Infront and the Stuttgart Stock Exchange for easy integration into systems.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Clearstream Selects Crypto Risk Metrics as ESG Data Provider for Crypto-Assets
• Goobit Relies on ESG Crypto Data from Crypto Risk Metrics
• AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance
• Crypto Finance (Deutschland) GmbH Relies on ESG Crypto Data from Crypto Risk Metrics

The post flatexDEGIRO BANK AG Chooses Crypto Risk Metrics for Crypto ESG Data appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt, May 27th, 2025. Clearstream, the post-trade services provider and central securities depository of Deutsche Börse Group, has selected Crypto Risk Metrics as its ESG data provider for crypto-assets. The Hamburg-based company will support Clearstream’s growing crypto services offering with high-quality, regulatory-aligned ESG metrics.

Clearstream serves clients in over 110 countries and recently launched an institutional-grade crypto custody service. This move reflects the group’s continued investment in secure, compliant digital asset infrastructure for ist international client base.

“With our new crypto custody solution, we empower our clients to manage their crypto-assets in a secure and efficient way,” said Thilo Derenbach, Head of Sales & Business Development, Digital Securities Services at Clearstream. “Crypto Risk Metrics ESG data offering helps us and our clients to comply with the regulatory requirements. And as we always adhere to the highest standards, we felt best to rely on the data measured in ISO-accredited testing centers provided by Crypto Risk Metrics.”

Tim Zölitz, CEO of Crypto Risk Metrics, commented: “Being chosen by Clearstream as one of the central players in financial services is of course a great honor for us. Our ESG data offering is a perfect match for their new crypto custody solution, as was evidenced already previously by the selection of our product by Crypto Finance, also a Deutsche Börse Group entity.”

Starting December 30, 2024, the Markets in Crypto-Assets Regulation (MiCAR) requires crypto-asset service providers to disclose various ESG metrics. As the leading data provider in this field, Crypto Risk Metrics is for example the exclusive ESG data provider of the ISO 24165 registration authority for Digital Token Identifier Foundation and cooperates with different data providers such as Infront for easy integration into systems.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Goobit Relies on ESG Crypto Data from Crypto Risk Metrics
• AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance
• Crypto Finance (Deutschland) GmbH Relies on ESG Crypto Data from Crypto Risk Metrics
• Bitstamp Trusts Crypto Risk Metrics to Fulfill its ESG Reporting Requirements According to MiCAR

The post Clearstream Selects Crypto Risk Metrics as ESG Data Provider for Crypto-Assets appeared first on Crypto Risk Metrics | Crypto Risk Management.

Stockholm, 7th of February, 2025. With Goobit, Crypto Risk Metrics wins another reputable player in the digital asset space. Goobit is strengthening its commitment to transparency and sustainability by integrating ESG data through Crypto Risk Metrics provision.

Christian Ander, CEO of Goobit, states: “After our due diligence process, the decision for Crypto Risk Metrics was very clear, as they were the only ones not raising any red flags in terms of neutrality and certainly excelled when it comes to the measurements itself. We were also impressed by the fact that they are working for the majority of MiCAR-licensed CASPs in Germany, as the German regulator is known to be particularly strict.”

Tim Zölitz, CEO of Crypto Risk Metrics, says: “Adding Goobit as the first Swedish exchange to make their move regarding Crypto ESG data and them choosing us is of course very much welcome. We now do expect others to move in the Nordics as well – and we are ready!”

The Markets in Crypto-Assets Regulation (MiCAR) requires so-called Crypto-Asset Service Providers to report different ESG metrics from December 30th, 2024. As a leading data provider in this area, Crypto Risk Metrics is, for example, the exclusive ESG data provider of the ISO 24165 issuing body for the Digital Token Identifier Foundation and cooperates with leading data providers for easy integration into the systems.

Source: Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance
• Crypto Finance (Deutschland) GmbH Relies on ESG Crypto Data from Crypto Risk Metrics
• Bitstamp Trusts Crypto Risk Metrics to Fulfill its ESG Reporting Requirements According to MiCAR
• Talos Partners with Crypto Risk Metrics to Help Clients Meet MiCA ESG Disclosure Requirements

The post Goobit Relies on ESG Crypto Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, January 31st 2025. The upcoming MiCAR-compliant stablecoin AllUnity has made a strategic decision to partner with Crypto Risk Metrics for its crypto ESG data needs. This move aligns with AllUnity’s commitment to regulatory compliance and sustainability, setting a new standard for the stablecoin market under German financial supervision.

A Regulatory-First Approach to Stablecoins

AllUnity, a joint venture between DWS, Flow Traders, and Galaxy, plans to introduce a stablecoin in 2025 that adheres to the Markets in Crypto Assets Regulation (MiCAR). The decision to issue the stablecoin under German regulatory oversight reflects the project’s focus on trust and stability in the evolving crypto landscape.

Why AllUnity Chose Crypto Risk Metrics

Alexander Höptner, CEO of AllUnity, on the decision to use Crypto Risk Metrics: “Just as we deliberately chose Germany as the country to issue the token, we also deliberately chose Crypto Risk Metrics as the data provider for our crypto ESG data. This decision was preceded by an intensive selection process in which we took a very close look at all providers. In the end, however, the decision was clear, both in terms of compliance structures and technical implementation.”

This careful approach ensures that AllUnity remains aligned with stringent regulatory standards while promoting transparency in environmental, social, and governance (ESG) factors for crypto assets.

The Growing Importance of ESG in Crypto

The increasing demand for ESG transparency in crypto assets underscores the importance of reliable, independent data providers. Tim Zölitz, CEO of Crypto Risk Metrics, highlights the significance of AllUnity’s choice:

“We are of course very pleased to have won such a prestigious consortium as a customer and assume that more and more companies will start to carry out real due diligence on providers who supply ESG data for crypto assets. The selection of AllUnity confirms our approach of not accepting any payments from layer 1 protocols and thus being immune to potential greenwashing accusations. This not only protects us, but also our customers.”

By ensuring objective ESG assessments, Crypto Risk Metrics strengthens its position as a trusted data provider for institutions navigating regulatory challenges in the crypto sector.

MiCAR and the Future of ESG Data in Crypto

Under the Markets in Crypto-Assets Regulation (MiCAR), stablecoin issuers are required to publish ESG indicators, making credible ESG reporting essential for regulatory compliance. Crypto Risk Metrics already collaborates with major institutions, such as:

• The Stuttgart Stock Exchange for seamless system integration
• The ISO 24165 issuing body for the Digital Token Identifier Foundation
• Data providers like Infront

These partnerships ensure that Crypto Risk Metrics remains at the forefront of regulatory-aligned ESG data solutions for the crypto industry.

Conclusion: A Step Forward for Transparent and Compliant Stablecoins

The partnership between AllUnity and Crypto Risk Metrics marks a pivotal moment in the crypto industry’s push for regulatory compliance and sustainability. As stablecoin issuers navigate the evolving regulatory landscape, the need for transparent, high-quality ESG data has never been greater.

By prioritizing due diligence, compliance, and sustainability, AllUnity is setting a new benchmark for stablecoins in the European market – ensuring that digital assets meet the highest regulatory and ethical standards.

Stay tuned for more updates as AllUnity prepares for its 2025 launch and continues shaping the future of stablecoin compliance and ESG transparency.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Crypto Finance (Deutschland) GmbH Relies on ESG Crypto Data from Crypto Risk Metrics
• Bitstamp Trusts Crypto Risk Metrics to Fulfill its ESG Reporting Requirements According to MiCAR
• Talos Partners with Crypto Risk Metrics to Help Clients Meet MiCA ESG Disclosure Requirements
• LCX Implements Conflict of Interest Free Crypto-ESG Data from Crypto Risk Metrics
• SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics

The post AllUnity Stablecoin Chooses Crypto Risk Metrics for ESG Data Compliance appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, January 29th, 2025. We are pleased to announce that Crypto Finance (Deutschland) GmbH, a subsidiary of Swiss-based Crypto Finance AG and part of Deutsche Börse Group, has chosen Crypto Risk Metrics as its provider for ESG data solutions for crypto-assets. This decision follows an extensive technical and compliance due diligence process, reinforcing the company’s commitment to regulatory adherence and sustainable practices in the crypto sector.

A Pioneer in Regulated Crypto Services

Since 2017, Crypto Finance (Deutschland) GmbH has been offering institutional clients trading, custody, and wallet services in the digital assets space. As one of the first MiCAR-licensed crypto asset service providers in Europe, the company is committed to meeting regulatory requirements, including the provision of comprehensive ESG data on crypto-assets.

Eric Viohl, Managing Director of Crypto Finance (Deutschland) GmbH, emphasized the importance of partnering with a neutral and specialized third party for ESG data:

“We made a conscious decision to source the ESG data for crypto-assets from a neutral and highly specialized third party, which sends a clear signal that regulatory compliance is a high priority for us. In addition to the different calculation models for the various blockchain types, we were particularly impressed by the current measurements in an ISO-accredited measuring center.”

Crypto Risk Metrics: A Trusted ESG Data Provider

As a leader in ESG data for crypto-assets, Crypto Risk Metrics provides market participants with reliable and compliant data solutions. CEO Tim Zölitz highlighted the importance of rigorous due diligence in selecting ESG data providers:

“We always have a good chance with the various Crypto Risk Metrics products if the potential partner carries out serious due diligence,” Zölitz noted. “And we are, of course, very pleased about the mandate and the commitment of Crypto Finance (Deutschland) GmbH to act compliantly in the crypto sector as well.”

Meeting MiCAR’s ESG Requirements

The Markets in Crypto Assets Regulation (MiCAR) mandates crypto asset service providers to report various ESG indicators. Crypto Risk Metrics, as a leading data provider in this area, also distributes its data via Infront, ensuring that market participants have access to high-quality ESG insights.

We look forward to supporting Crypto Finance (Deutschland) GmbH in its mission to uphold regulatory compliance and ESG transparency in the evolving crypto landscape.

Source: Press release Crypto Risk Metrics & Crypto Finance (Deutschland) GmbH

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Bitstamp Trusts Crypto Risk Metrics to Fulfill its ESG Reporting Requirements According to MiCAR
• Talos Partners with Crypto Risk Metrics to Help Clients Meet MiCA ESG Disclosure Requirements
• LCX Implements Conflict of Interest Free Crypto-ESG Data from Crypto Risk Metrics
• SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics

The post Crypto Finance (Deutschland) GmbH relies on ESG Crypto Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

This partnership reflects the increasing importance of high-quality ESG data in the crypto industry’s ongoing evolution, as the demand for such data continues to grow. Bitstamp’s decision underscores their steadfast commitment to transparency, compliance, and sustainability – principles that are becoming increasingly critical as global regulatory frameworks take shape.

Why Bitstamp chose Crypto Risk Metrics

Bitstamp selected Crypto Risk Metrics after a rigorous evaluation process, which took into account potential conflicts of interest, technical capabilities, and the overall setup. This thorough assessment illuminated key distinctions among providers, with Crypto Risk Metrics emerging as the clear leader in delivering the comprehensive, reliable, and actionable ESG data required under MiCAR. Furthermore, Bitstamp’s choice reflects their proactive approach to avoiding any conflicts of interest by sourcing data from independent third parties, ensuring the integrity and credibility of their ESG initiatives.

Setting the standard for ESG data in crypto

At Crypto Risk Metrics, we have invested heavily in building a platform that meets the highest standards of quality and reliability. This milestone is a testamony to the effort and innovation we’ve put into our approach and the trust leading industry players place in our solutions.

We at Crypto Risk Metrics believe that ESG considerations are not just a regulatory requirement but also a cornerstone of responsible innovation in the crypto space. By working closely with forward-thinking companies like Bitstamp, we are helping to set new benchmarks for transparency and accountability in this rapidly evolving industry.

As MiCAR and other regulations continue to redefine the landscape, we remain dedicated to providing the tools and insights our clients need to lead with integrity and innovation.

We’re honored to partner with Bitstamp on this journey and look forward to supporting their ongoing efforts to meet and exceed global regulatory standards.

Stay tuned for more updates as we continue to drive progress in the ESG and crypto space!

Source: Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Talos Partners with Crypto Risk Metrics to Help Clients Meet MiCA ESG Disclosure Requirements
• LCX Implements Conflict of Interest Free Crypto-ESG Data from Crypto Risk Metrics
• SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics
• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range

The post Bitstamp Trusts Crypto Risk Metrics to Fulfill its ESG Reporting Requirements According to MiCAR appeared first on Crypto Risk Metrics | Crypto Risk Management.

With the entry into force of MiCA, crypto-asset service providers, such as banks and brokers, will be required to provide ESG data for the crypto-assets they support. Crypto Risk Metrics provides risk-based assessment of cryptocurrencies, crypto ETPs and tokenized assets to regulated financial institutions as well as the ESG data required by MiCA.

Simplifying MiCAR compliance

“Partnering with the market leader in ESG data for crypto assets to help ensure our clients are MiCA-ready was an easy choice,” said Frank van Zegveld, Head of EMEA Sales for Talos. “Being able to access Crypto Risk Metrics’ sustainability data through Talos gives our clients one less compliance hurdle to worry about and aligns with our mission of providing the most comprehensive platform for institutional crypto.”

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “The partnership with Talos is a testimony to the quality of our data and our strong compliance framework as evidenced by our IDW PS 951 certification. We believe this is why we have been chosen by the Digital Token Identifier Foundation that issues ESMA recommended digital token identifiers, as well as a number of companies onboarding with us on a weekly basis.”

About Talos

Talos provides institutional-grade technology that supports the full digital asset investment lifecycle, including liquidity sourcing, price discovery, trading, settlement and portfolio management. Engineered by a team with unmatched experience building institutional trading and portfolio systems, the Talos platform connects institutions to key providers in the digital asset ecosystem – exchanges, OTC desks, prime brokers, lenders, custodians, and more – through a single interface.

Source: Press release Talos

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• LCX Implements Conflict of Interest Free Crypto-ESG Data from Crypto Risk Metrics
• SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics
• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range

The post Talos Partners with Crypto Risk Metrics to Help Clients Meet MiCA ESG Disclosure Requirements appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, December 6th, 2024. With LCX, the Liechtenstein Cryptoassets Exchange, Crypto Risk Metrics wins another reputable player in the digital assets space. LCX is a regulated cryptocurrency exchange and fintech company based in Liechtenstein, specializing in tokenization, compliance, and innovative blockchain solutions.

LCX is one of Europe’s fastest growing regulated crypto exchanges. It is dedicated to building a bridge between traditional finance and the fast-evolving world of digital assets, ultimately delivering Freedom of Wealth to LCX’s users.

Why LCX relies on ESG data

Monty Metzger, CEO of LCX AG, states: “As a MiCAR-ready company, we recognize that integrating ESG data is a vital component of our licensing process. We have deliberately chosen to obtain ESG data for cryptocurrencies from Crypto Risk Metrics, a neutral and highly specialized third-party provider. After conducting a thorough due diligence process, we determined that CRM surpasses our stringent requirements. Their robust methodology, which incorporates German TÜV-certified measurements and a steadfast commitment to accuracy and compliance, ensures the highest level of reliability for our sustainability data needs.”

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “We are especially proud to have been chosen by LCX as they have been playing by the rulebook since the inception, treating digital assets just like every other established asset class. In light of the worldwide developments, we are expecting more and more jurisdictions to demand ESG disclosures.”

What does MiCAR mean for CASPs in terms of ESG data?

The Markets in Crypto-Assets Regulation (MiCAR) requires so-called Crypto Asset Service Providers (CASPs) to report different ESG metrics from December 30th, 2024. As a leading data provider in this area, Crypto Risk Metrics is, for example, the exclusive ESG data provider of the ISO 24165 issuing body for the Digital Token Identifier Foundation and cooperates with leading data providers for easy integration into the systems.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics
• Crypto Risk Metrics Supports Blockrise in Meeting MiCAR Requirements with ESG Data Solution
• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range

The post LCX Implements Conflict of Interest Free Crypto-ESG Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, December 3rd, 2024. With Smartbroker AG, Crypto Risk Metrics has attracted another major customer for its ESG data services for cryptocurrencies. After Bitpanda, Coinmerce, dwpbank, Bank Frick and Blockrise this is now the sixth regulated institution to use Crypto Risk Metrics’ services.

Thomas Soltau, Member of the Board of Smartbroker AG, comments: “We made a conscious decision to source the ESG data for cryptocurrencies with Crypto Risk Metrics from a neutral and highly specialized third party. This sends a clear signal that regulatory compliance and transparency for our customers are of high importance to us. Thanks to the data, we are able to provide the greatest possible transparency to our customers and facilitate decision-making for their upcoming investment.”

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “With Smartbroker AG, we were able to convince another renowned client from the financial services industry of our services, which obvisouly not only makes us proud but also vindicates our strategy of not accepting payments from blockchain protocols for the calculation of ESG metrics: The potential conflicts of interest are simply too high for regulated financial market participants, as they are ultimately responsible for the content of the data they report under MiCAR. And the investments in technical excellence and robust statistical models are now finally paying off.”

The Markets in Crypto-Assets Regulation (MiCAR) obliges so-called crypto-asset service providers to report various ESG key figures from December 30th, 2024. As a leading data provider in this area, Crypto Risk Metrics is, for example, the exclusive ESG data provider of the ISO 24165 issuing body for the Digital Token Identifier Foundation and cooperates with data providers such as Infront and the Stuttgart Stock Exchange for easy integration into the systems.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range
• Crypto Risk Metrics Supports Blockrise in Meeting MiCAR Requirements with ESG Data Solution
• Focus on Sustainability & MiCAR Compliance: Bank Frick Uses Crypto ESG Data from Crypto Risk Metrics
• Coinmerce Chooses Crypto Risk Metrics for Reliable Crypto ESG Data to Ensure MiCAR Compliance

The post SMARTBROKER+ Enhances ESG Reporting with Crypto Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

ESG Data: Essential for MiCAR Compliance

Crypto Asset Service Providers (CASPs) like Blockrise require robust and neutral data solutions to comply with MiCAR regulations. ESG data plays a pivotal role in ensuring the sustainable and ethical management of digital assets.

Jos Lazet, CEO of Blockrise, stated: “We chose Crypto Risk Metrics because no other provider was able to deliver compliant data – which honestly surprised us. The high technical standards of the methodologies and the neutrality ensured by independence from Layer-1 protocols were critical factors for us.”

Tim Zölitz, CEO of Crypto Risk Metrics, added: “We are excited to expand our European footprint with Blockrise and are optimistic about what’s to come. It’s also encouraging to see that technical requirements in RFPs are increasingly taken seriously – a factor that has often been overlooked in the past.”

Regulatory Requirements under MiCAR

The Markets in Crypto-Assets Regulation (MiCAR) obliges so-called crypto-asset service providers to report various ESG key figures from December 30, 2024. As a leading data provider in this area, Crypto Risk Metrics is, for example, the exclusive ESG data provider of the ISO 24165 issuing body for the Digital Token Identifier Foundation and cooperates with data providers such as Infront and the Stuttgart Stock Exchange for easy integration into the systems.

Source: Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• Focus on Sustainability & MiCAR Compliance: Bank Frick Uses Crypto ESG Data from Crypto Risk Metrics
• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range
• Coinmerce Chooses Crypto Risk Metrics for Reliable Crypto ESG Data to Ensure MiCAR Compliance
• Notabene and Crypto Risk Metrics Join Forces in a Strategic Partnership on Crypto ESG Data

The post Crypto Risk Metrics Supports Blockrise in Meeting MiCAR Requirements with ESG Data Solution appeared first on Crypto Risk Metrics | Crypto Risk Management.

Bank Frick relies on high standards for ESG data

Frankfurt am Main, November 21st, 2024. With Bank Frick AG, Crypto Risk Metrics has closed another reputable client for the provision of ESG data for cryptocurrencies. The Liechtenstein-based institution was one of the first banks to offer a comprehensive range of digital assets and is considered a pioneer in the traditional financial world in this area.

Neutral, well-founded data against greenwashing in the crypto sector

With regard to the decision to use data from Crypto Risk Metrics, Jonas Gantenbein, Head of Digital Assets at Bank Frick, explains: “We have deliberately chosen to source ESG data for cryptocurrencies from Crypto Risk Metrics, a provider certified under IDW PS 951 standards. Their robust compliance frameworks and proven technical expertise were key factors in our decision. Engaging an independent, highly specialized third party underscores our commitment to regulatory compliance.”

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “We are pleased that Bank Frick is extending its cooperation with us to the area of crypto ESG data following an intensive technical due diligence process. We also feel vindicated in our strategy of never having accepted payments from blockchain protocols for the calculation of ESG metrics: The potential conflicts of interests are simply too high for regulated financial market participants, as under MiCAR they are ultimately responsible for the content of the data they report.”

MiCAR regulation: ESG reporting becomes mandatory

The Markets in Crypto-Assets Regulation (MiCAR) obliges so-called crypto-asset service providers to report various ESG key figures from December 30, 2024. As a leading data provider in this area, Crypto Risk Metrics is, for example, the exclusive ESG data provider of the ISO 24165 issuing body for the Digital Token Identifier Foundation and cooperates with data providers such as Infront and the Stuttgart Stock Exchange for easy integration into the systems.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.

For further reading on our recent developments and partnerships, check out the following articles:

• MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range
• Coinmerce Chooses Crypto Risk Metrics for Reliable Crypto ESG Data to Ensure MiCAR Compliance
• Notabene and Crypto Risk Metrics Join Forces in a Strategic Partnership on Crypto ESG Data

The post Focus on Sustainability & MiCAR Compliance: Bank Frick Uses Crypto ESG Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

MiCAR requirements for listing and delisting criteria for crypto assets

Frankfurt am Main, November 12th, 2024. With Title V of MiCAR coming into force December 30^th, 2024, Crypto Asset Service Providers are obliged to publish their listing- and delisting criteria on their website. Due to the absence of a common standard, Crypto Risk Metrics in cooperation with HTW Berlin conducted the worlds most comprehensive study on listing- and delisting criteria of crypto assets so far.

Crypto Risk Metrics relies on continuous compliance monitoring

Tim Zölitz, CEO of Crypto Risk Metrics, states: “We are already the leading provider of crypto esg data for exchanges to comply with the applicable regulation. Therefore, enhancing our product to comply with the required criteria for listing and delisting was a logical next step for us. One crucial part is that we also make sure the assets are constantly monitored against the criteria once laid out – one of the very prominent shortcomings in the approaches we have seen in the industry so far.”

Increased risk without constant monitoring of crypto assets

In fact, some of the exchanges do have listing criteria in place, but don’t follow up on material developments – such as decreasing liquidity, that bears the risk of higher spreads.

Findings from the world’s largest study on listing and delisting criteria for crypto assets

Prof. Dr.-Ing. Katarina Krüger from HTW Berlin adds: “We conducted the world’s largest study for listing and delisting criteria to date and gained valuable insights. Out of the 100 exchanges surveyed, only 14 had criteria for listing and delisting displayed on their website. When asked specifically about the criteria, only 20 out of 86 responded to our outreach, and only 7 provided criteria – occasionally lacking detail.”

With Crypto Risk Metrics listing and delisting tool, CASPs will be able to assess and monitor the crypto-assets they provide services for on a continuous basis, therefore fulfilling the requirements of the MiCA Regulation.

Contact us to find out more about how you can benefit from better control of your crypto asset listings.

Source: Press release Crypto Risk Metrics

For further reading on our recent developments and partnerships, check out the following articles:

• Coinmerce Chooses Crypto Risk Metrics for Reliable Crypto ESG Data to Ensure MiCAR Compliance
• ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know
• Risk Management for Direct and Indirect Investments in Cryptocurrencies

The post MiCAR Listing and Delisting Compliance for Crypto-Assets – Crypto Risk Metrics Extends Product Range appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, October 31st, 2024. With Coinmerce, Crypto Risk Metrics was able to win another important customer for offering ESG data for cryptocurrencies. The Dutch crypto broker serves over 400k users and has the largest coin offering in Europe.

Jaap de Bruijn, CEO of Coinmerce, states: “We have consciously decided to obtain the ESG data for cryptocurrencies with Crypto Risk Metrics from a neutral and highly specialized third party. After a thorough due diligence process, all other providers were not able to meet our requirements regarding conflicts of interests and technical issues in the measurement procedures.”

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “With Coinmerce, we have won the trust of another broker with a large token offering – and our first client in the Netherlands. We are pleased to widen our European ambitions with Coinmerce; more to come, soon.”

Background on ESG Data

As the cryptocurrency market matures, the demand for transparency and accountability has grown significantly. With regulations like the Markets in Crypto-Assets Regulation (MiCAR) coming into effect on December 30th, 2024, it is crucial for crypto-asset service providers to adopt reliable and standardized ESG reporting practices. Our ESG data provides essential insights into the environmental and social impacts of crypto-assets, enabling stakeholders to make informed decisions.

As a leading data provider in this area, Crypto Risk Metrics is the exclusive ESG data provider for the ISO 24165 issuing body of the Digital Token Identifier Foundation. We cooperate with leading data providers for easy integration into systems, ensuring that our clients are well-prepared for upcoming regulatory changes. Looking ahead, we anticipate further developments that will shape the ESG landscape in the cryptocurrency market, and we remain committed to leading the charge in providing high-quality ESG data.

Source: Press release Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ‘ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.‘

For further reading on our recent developments and partnerships, check out the following articles:

• Notabene and Crypto Risk Metrics Join Forces in a Strategic Partnership on Crypto ESG Data
• Bitpanda Strengthens ESG Compliance in the Crypto Sector with Data from Crypto Risk Metrics
• ESG Data for Cryptocurrencies and Digital Assets Now Live in the DTI Database

The post Coinmerce Chooses Crypto Risk Metrics for Reliable Crypto ESG Data to Ensure MiCAR Compliance  appeared first on Crypto Risk Metrics | Crypto Risk Management.

Pelle Brændgaard, CEO of Notabene, emphasizes the importance of this partnership, stating: “MiCAR compliance is top-of-mind for all of our clients that rely on us to implement their Travel Rule program. Partnering with the leading crypto ESG data provider enables us to help our customers easily comply with ESG ratings disclosures and further strengthen their coverage of MiCA reporting obligations.”

Tim Zölitz, CEO of Crypto Risk Metrics, echoes this sentiment, highlighting the value of the collaboration: “It is great to see our investments in strong internal compliance procedures and technical excellence is paying off nearly daily by now. After being awarded the exclusive rights to push our ESG data into the ISO-reference database from the Digital Token Identifier Foundation, more and more entities rely on our data as the single source of truth for crypto ESG data.”

Together, Notabene and Crypto Risk Metrics are leading the way for responsible crypto innovation, setting a new standard for compliance and ESG data integration within the industry.

Source: Crypto Risk Metrics

To gain a deeper understanding of the ESG disclosure requirements under the MiCAR regulation, explore our article on ‘ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know.‘

For further reading on our recent developments and partnerships, check out the following articles:

• Bitpanda Strengthens ESG Compliance in the Crypto Sector with Data from Crypto Risk Metrics
• ESG Data for Cryptocurrencies and Digital Assets Now Live in the DTI Database
• Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets

The post Notabene and Crypto Risk Metrics Join Forces in a Strategic Partnership on Crypto ESG Data appeared first on Crypto Risk Metrics | Crypto Risk Management.

Who Needs to Disclose ESG Data?

When new regulatory requirements arise, the first question that needs to be answered is which entities need to obey the novel rules, and which don’t. And although it is stated that all CASPs, which are further defined in Article 3 of the MiCA Regulation (https://eur-lex.europa.eu/eli/reg/2023/1114/oj), are in scope of the regulation, we believe there was room for interpretation opened up, stemming from the table provided on page 13 of the RTS (https://www.esma.europa.eu/sites/default/files/2024-07/ESMA75-453128700-1229_Final_Report_MiCA_CP2.pdf). In that table, the different entities in scope as well as their obligations are laid out.

The following entities are mentioned in the table

• Person drafting crypto-asset white paper
• CASPs providing one or more of the following services: Operating a trading platform, exchanging crypto-assets for funds or exchanging crypto-assets for other crypto-assets
• CASPs only providing services other than those listed above

Commission agents will most likely need to disclose ESG data

As financial commission agents were not specifically mentioned, some players try to interpret this aspect in their “favor” of not falling under the entities in scope, as they are not “operating a trading platform”, which – technically – is correct. Nevertheless, one can clearly derive the intention of the lawmakers by looking at page 84 of the RTS:

“There may also be cases where a crypto-asset service provider legitimately provides services in relation to a crypto-asset for which no crypto-asset white paper has been produced or is required. Article 4(5) provides some exceptions for which Article 66(5) may not apply, however ESMA has considered that where Article 66(5) does apply, more considerable requirements would be justified for crypto-asset service providers that are client facing and/or that directly provide opportunities for transactions, namely those operating trading platforms, those offering the exchange of crypto-assets for funds and those offering the exchange of crypto-assets for other crypto-assets, than for other types of crypto-asset service providers.“

The “will” of the lawmaker is clear: Potential investors shall be able to base their investment decision on the ESG data provided. Wording such as “crypto-asset service providers that are client facing and/or that directly provide opportunities for transactions, namely those operating trading platforms,” emphasizes that the intend of the regulation was to catch the point where the investors make their decision, regardless of that entity qualifies as a “trading platform” or a “commission agent”.

The 500.000 kWh threshold does not ease the burden significantly

As stated in the above-mentioned table, different entities need to report different numbers – we call this the 1+5 approach, as 1 figure (the total electricity consumption) must be disclosed by every CASP, whereas the disclosure of the five numbers on top are related to the type of CASP and the amount of electricity consumption. ESMA emphasizes to have significantly reduced the burden for the companies by introducing a 500.000 kWh threshold, under which only electricity consumption needs to be displayed. Although this was meant to relieve the CASPs from some of the reporting burden, one still must measure if the threshold is met, and if material changes in the consumption were to be detected. Therefore, the newly introduced threshold does not ease the efforts too much in our point of view.

CASPs Will Most Likely Buy External ESG Data

The next question circles around the best way of obtaining the data. Theoretically, CASPs are free to either buy the data from third parties or come up with their own data-sets. Furthermore, “estimates” are deemed sufficient. Seems pretty easy, right? Well, lets dive in.

In Article 6(5) on page 186 of the RTS, the lawmaker states “Where the information relating to the climate and other environment-related indicators is not readily available, the persons referred to in paragraph 1 of Article 4 and crypto-asset service providers shall provide estimates, together with details of the best efforts carried out to obtain the information by conducting additional research, cooperating with third party data providers or external experts or making reasonable assumptions.“ Although coming up with estimates and the details of the best efforts carried out to obtain the data seems challenging and cumbersome at the first place, we would argue that there are data-providers out there one can rely on, therefore weakening the argument that these data-sets are not available.

But even if the relevant NCA would accept the justification that this data is not available, every CASP would have to ask itself what method of obtaining the data seems better suited and more cost effective. We believe the way CASPs will go is to buy the data from a trusted third party with strong internal compliance procedures (as a provider of this data, we are of course slightly biased here).

Reasons for external data provision

First, CASPs must spend time coming up with the numbers and the respective monitoring systems, as they are required to update their numbers when material changes arise, and the 500.000 kWh threshold is met. This takes valuable time of the developers, that could have been invested in listing new tokens or coming up with better solutions for clients.

Second, CASPs remain “exclusively responsible for the content of the white paper.”, if they were to use content from other whitepapers (which we will dig deeper into below) (see Page 179, (4)). We believe that no regulated financial institution will risk the accusation of potential greenwashing, as this is explicitly stated in (9) on page 180. Imagine a regulated financial institution copying content from a source that contains false or greenwashing information. The risk for the top management is simply too high.

Third, the “safest” way for a CASP to be compliant is always to show the “best effort”, which in this case will be searching for a third party. And given all the effort, this solution is also the best alternative when it comes to cost.

Centralization will be the most likely outcome

Although we are talking about distributed systems, centralization of the data will be the most likely outcome. The first reason for this is economies of scale – as a lot of CASPs need the same data, prices for single CASPs go down when more CASPs are buying from the same supplier.

Second, the European Commission also sees the challenge of investor confusion, if the numbers for the same crypto-asset differ when looking at various platforms. This even led to the phrase that ESMA calls for a “coordination” between market participants. As ESMA can clearly not call for a cartel, the most likely scenario will be the formation around a common denominator that every industry player will implement anyway, which we believe will most likely be the ISO 24165-1:2021 token identifier, provided by the Digital Token Identifier Foundation. That is also the reason why we entered into an exclusive ESG data delivery contract with the foundation, as we are setting the market standard.

Providers & closing words

When looking at different providers, potential buyers of the data need to assess credibility of the data-vendor, experience in the field and potential conflicts of interest as well. Some providers do also accept payments from Layer-1-protocols, whereas other providers explicitly refrain from that to avoid conflicts of interests. Furthermore, there are fundamental differences in the quality of the technical measurement set-ups.

Although the industry is still very young and there are uncertainties on the way, it was always clear that ESG-reporting would someday be required. Looking further down the road we suspect the regulator widening the disclosure requirements to the providers of securities as well – as nobody would be able to explain, why crypto-asset service providers need to disclose these numbers, and Delta-1-Certificate-Issuers don’t. That’s simply doesn’t make sense, as it is either nobody or everybody. Furthermore, we do expect taxes on the horizon, as we have seen with the airline industry, for example.

If you found this helpful (or if not): We are always happy for feedback. We also developed a decision-making matrix which you can use as an inspiration when looking for a provider. Please reach out to b.becker@crypto-risk-metrics.com if you need the matrix/want to share something with us.

For more information on the latest developments and partnerships of Crypto Risk Metrics, please refer to the following articles:

• Bitpanda Strengthens ESG Compliance in the Crypto Sector with Data from Crypto Risk Metrics
• Crypto Risk Metrics and DTI Foundation Partner to Enhance ESG Data for Crypto-Assets
• Risk Management for Direct and Indirect Investments in Cryptocurrencies

The post ESG Disclosure Requirements for Crypto-Asset Service Providers in Europe – Everything You Need to Know appeared first on Crypto Risk Metrics | Crypto Risk Management.

Frankfurt am Main, October 9th, 2024. Bitpanda GmbH has become the latest significant market player to opt for the ESG data services provided by Crypto Risk Metrics. Covering more than 420 assets, this offering is set to become the most comprehensive ESG data solution for digital assets worldwide.

Focus on Neutrality and Transparency in Crypto ESG Data

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, explains: “We made a conscious decision to source ESG data for cryptocurrencies from Crypto Risk Metrics, a neutral and highly specialized third-party provider. This sends a clear signal that regulatory compliance is a high priority for us, and we are committed to preventing greenwashing in the crypto sector. Naturally, our regulated clients also place great value on receiving data from a neutral entity.”.

A comprehensive ESG dataset covering over 420 crypto assets

Tim Zölitz, CEO of Crypto Risk Metrics, adds: “We are very excited to partner with Bitpanda and to offer what is now likely the most comprehensive crypto ESG data offering worldwide. Furthermore, we feel validated in our strategy of never accepting payments from blockchain protocols for ESG metrics calculations. The reason is that the risk of potential conflicts of interest is simply too high. The risk of potential conflicts of interest is simply too high. And since regulated financial market participants are ultimately responsible for the accuracy of the data they report under MiCAR, no one is willing to take that risk.”

A partnership for sustainable MiCAR compliance

The Markets in Crypto-Assets Regulation (MiCAR) mandates that crypto-asset service providers (CASPs) report various ESG metrics starting December 30, 2024. As a leading data provider in this field, Crypto Risk Metrics serves as the exclusive ESG data provider for the ISO 24165 Digital Token Identifier Foundation and collaborates with various data providers to ensure seamless system integration.

Source: Press release Crypto Risk Metrics

For more information on the latest developments and partnerships with Crypto Risk Metrics, check out the following articles:

• dwpbank Relies on ESG Crypto Data from Crypto Risk Metrics to Meet MiCAR Requirements
• ESG Data for Cryptocurrencies and Digital Assets Now Live in the DTI Database
• Cashlink & Crypto Risk Metrics Cooperate on Risk Management of Tokenized Assets

The post Bitpanda Strengthens ESG Compliance in the Crypto Sector with Data from Crypto Risk Metrics appeared first on Crypto Risk Metrics | Crypto Risk Management.

dwpbank Sources ESG Data for Digital Assets

Frankfurt am Main, October 15th, 2024. Deutsche WertpapierService Bank AG (dwpbank) relies on ESG crypto data from Crypto Risk Metrics going forward. These data are integrated into the wpNex platform, which facilitates trading in digital assets. As a result, Banks and savings banks can seamlessly and flexibly incorporate cryptocurrency trading, including Bitcoin, into their service offerings.

Sascha Dölker, Head of Digitalization at dwpbank, states: “We have been using Crypto Risk Metrics since the beginning of 2024 and have decided to also source ESG data for cryptocurrencies from them. This enables us to prevent potential greenwashing in the crypto sector. Our clients value receiving data from a neutral provider.”

Benefits of the partnership with Crypto Risk Metrics

Tim Zölitz, CEO der Crypto Risk Metrics, adds: “We are delighted that dwpbank is extending its partnership with us to include crypto ESG data. We also feel validated in our strategy of never accepting payments from blockchain protocols for calculating ESG metrics; the risk of conflicts of interest is simply too high for regulated financial market participants. Under MiCAR, they are ultimately responsible for the content of the data they report, and non-compliance can lead to significant penalties.”

MiCAR and the importance of ESG data

MiCAR requires so-called Crypto-Asset Service Providers to report various ESG metrics starting December 30, 2024. As a leading data provider in this field, Crypto Risk Metrics is, for example, the exclusive ESG data provider for the ISO 24165 allocation agency for the Digital Token Identifier Foundation. Furthermore, it collaborates with data providers such as Infront and the Stuttgart Stock Exchange to ensure seamless integration into existing systems.

Source: Press release Crypto Risk Metrics

For more information on the latest developments and partnerships of Crypto Risk Metrics, please refer to the following articles:

• ESG Data for Cryptocurrencies and Digital Assets Now Live in the DTI Database
• Cashlink & Crypto Risk Metrics Cooperate on Risk Management of Tokenized Assets

The post dwpbank Relies on ESG Crypto Data from Crypto Risk Metrics to Meet MiCAR Requirements appeared first on Crypto Risk Metrics | Crypto Risk Management.

Unified ESG Data for Crypto Assets

London, August 1st, 2024. Following the signing of a Memorandum of Understanding earlier this year, the Digital Token Identifier (DTI) Foundation and Crypto Risk Metrics (CRM) are pleased to announce the implementation of ESG-related data in the DTI database. This collaboration will help future crypto-asset service providers comply with the new ESG disclosure requirements under the EU Markets in Crypto-Assets Regulation (MiCA) by providing a single source of truth for ESG data.

The Digital Token Identifier Foundation, a nonprofit division of Etrading Software Limited, is the registration body for the International Organization for Standardization (ISO) 24165 Digital Token Identifier standard, an ISO standard that enables the unique identification of all fungible digital assets. The European Securities and Markets Authority (ESMA) has made the use of DTIs mandatory under the Markets in Crypto-Assets Regulation (MiCAR).

An important requirement under MiCAR is the disclosure of sustainability indicators by issuers of crypto-assets and service providers, so-called crypto-asset service providers. These requirements aim to capture negative impacts on the climate and other environmental factors and to describe the key energy indicators of crypto assets.

MiCAR Requirements and Sustainability Reporting

By combining the “golden source” for the unique identification of digital tokens with a leading provider of crypto ESG data, regulated crypto-asset issuers and service providers can now comply with the regulations with minimal effort.

“The addition of ESG data to our DTI database addresses a relevant market and we have already received the first requests before the offering was even officially launched,” said Rowan Varrall, Associate Director at the DTI Foundation. “This collaboration will add significant value to our users and help them to efficiently comply with MiCAR sustainability reporting requirements.”

Tim Zölitz, CRO at Crypto Risk Metrics, adds: “Our joint efforts will provide crypto asset issuers and service providers with greater transparency and compliance in the evolving regulatory landscape. And of course, we are pleased that the choice of the DTI Foundation was in our favor due to its robust internal compliance framework and data quality.”

About the DTI Foundation

The Digital Token Identifier (DTI) Foundation is a non-profit division of Etrading Software (ETS), a global regulatory data provider with a focus on solving market-wide problems by building market infrastructures for the new digital economy. DTI Foundation’s mission is to provide the golden source reference data for the unique identification of digital tokens based on ISO’s new standard for digital assets, ISO 24165. The DTI Foundation has already issued ISO identification codes for over two thousand of the most commonly traded digital assets, with more codes being added each day. All commonly traded digital assets can be assigned ISO-standard DTI codes.

For more information, please visit www.dtif.org.

Source: Press release Crypto Risk Metrics.

For further reading on our recent developments and partnerships, check out the following articles:

• Crypto Risk Metrics: Boerse Stuttgart Group Now Offers ESG Data for Cryptocurrencies
• Cashlink & Crypto Risk Metrics cooperate on risk management of tokenized assets
• Crypto Risk Metrics and DTI Foundation Partner to Enhance ESG Data for Crypto-Assets

The post ESG Data for Cryptocurrencies and Digital Assets Now Live in the DTI Database appeared first on Crypto Risk Metrics | Crypto Risk Management.

“We are seeing a great deal of interest in tokenized financial products,” says Michael Duttlinger, CEO of Cashlink Technologies GmbH. “At the same time, however, we are also confronted with many questions that arise in the context of an New-Product-Process, for example. By cooperating with the market leader for risk management in distributed systems and ESG data for blockchain-based assets, we can offer significant added value to potential investors.”

Tim Zölitz, CRO of Crypto Risk Metrics, adds: “The many advantages of tokenized assets definitely speak for a positive development. At the same time, as is always the case when new technologies emerge, new risk vectors arise that asset managers must manage accordingly in order to act in a regulatory compliant manner. We are very pleased to make the financial market a little bit safer with this cooperation.”

Source: Press release Crypto Risk Metrics

For further reading on our recent developments and partnerships, check out the following articles:

• Crypto Risk Metrics: Boerse Stuttgart Group Now Offers ESG Data for Cryptocurrencies
• Crypto Risk Metrics and DTI Foundation Partner to Enhance ESG Data for Crypto-assets
• Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets

The post Cashlink & Crypto Risk Metrics Cooperate on Risk Management of Tokenized Assets appeared first on Crypto Risk Metrics | Crypto Risk Management.

In view of this, Boerse Stuttgart Group is now expanding its market data offering to include ESG data for cryptocurrencies. The data is calculated and provided by Crypto Risk Metrics as part of a cooperation. Boerse Stuttgart Group distributes the data through its existing network of data providers. Their clients can obtain the ESG data through a simple feed extension, which minimizes their internal effort.

“Through our offering of ESG data for cryptocurrencies, every bank, broker and crypto provider can easily and cost-effectively obtain the data required by regulation. We are directly connected to all major data vendors who can redistribute the ESG data to their clients,’ says Sabine Guske, Head of Data & Analytics at Boerse Stuttgart Group.

Tim Zölitz, CRO of Crypto Risk Metrics, adds: ‘Our cooperation with Boerse Stuttgart Group ensures that every provider of crypto services can fulfil its ESG reporting obligations in the best possible way. We were particularly pleased that our internal compliance framework, which systematically excludes possible influences from blockchain protocols in the calculation of ESG figures, was taken into account.”

At the start, Boerse Stuttgart Group offers ESG data for around 30 cryptocurrencies.
The offering will be continuously expanded in line with demand.

About Boerse Stuttgart Group

Boerse Stuttgart Group is the sixth largest exchange group in Europe with strategic pillars in the capital markets business and in the digital and crypto business. It operates exchanges in Germany, Sweden and Switzerland. As a true pioneer, it has built the largest digital and crypto business of all European exchange groups. Boerse Stuttgart Group has a workforce of 700 and premises in Stuttgart, Berlin, Frankfurt, Ljubljana, Milan, Stockholm and Zurich.

Source: Press release Boerse Stuttgart Group

For further reading on our recent developments and partnerships, check out the following articles:

• Crypto Risk Metrics and DTI Foundation Partner to Enhance ESG Data for Crypto-Assets
• Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets

The post Crypto Risk Metrics: Boerse Stuttgart Group Now Offers ESG Data for Cryptocurrencies appeared first on Crypto Risk Metrics | Crypto Risk Management.

Hamburg, June 26th, 2024. The Digital Token Identifier (DTI) Foundation and Crypto Risk Metrics (CRM) are pleased to announce the signing of a Memorandum of Understanding (MoU) to collaborate on displaying ESG-related data in the DTI Registry. This collaboration aims to assist market participants in meeting the new requirements under the European Union’s Markets in Crypto-Assets (MiCA) regulation by expanding their capabilities to end users.

A key requirement under MiCA involves the disclosure of sustainability indicators by crypto-asset issuers and service providers. These requirements are designed to capture adverse impacts on the climate and other environment-related factors and to outline key energy indicators of crypto-assets. By combining the golden source of unique identification of digital tokens with a leading Crypto-ESG-Data provider, regulated crypto-asset issuers and service providers will be able to stay compliant with minimal effort.

ESG Data Ensures Transparency & Compliance for Crypto-Assets

The DTI Foundation’s ISO DTI standard for digital token identification continues to be adopted by crypto and digital asset market infrastructure and service providers and regulators. The European Securities and Markets Authority (ESMA) is anticipated to embed DTIs as the crypto-asset identifier under MiCA transparency reporting, order book, offering and record-keeping requirements.

“We are excited to partner with CRM to enhance our data offerings with essential ESG-related information,” said Rowan Varrall, Associate Director at DTI Foundation. “This collaboration will provide significant value to our users, helping them to meet MiCA’s sustainability disclosure requirements efficiently.”

Tim Zölitz, CRO at Crypto Risk Metrics, adds: “We are thrilled to join forces with the DTI Foundation to integrate our comprehensive ESG data into the DTI Registry. Our combined efforts will facilitate greater transparency and compliance for crypto-asset issuers and service providers in the evolving regulatory landscape.”

About the DTI Foundation

The Digital Token Identifier (DTI) Foundation is a non-profit division of Etrading Software (ETS), a global regulatory data provider with a focus on solving market-wide problems by building market infrastructures for the new digital economy. DTI Foundation’s mission is to provide the golden source reference data for the unique identification of digital tokens based on ISO’s new standard for digital assets, ISO 24165. The DTI Foundation has already issued ISO identification codes for over two thousand of the most commonly traded digital assets, with more codes being added each day. All commonly traded digital assets can be assigned ISO-standard DTI codes. For more information, please visit: www.dtif.org.

About Crypto Risk Metrics

Crypto Risk Metrics (a brand of DLC Distributed Ledger Consulting GmbH (“DLC”)) is an IDW-PS 951 certified specialist service provider for the risk management of distributed ledger technologies. The software-as-a-service is used by fund companies (e.g. HANSAINVEST Hanseatische Investment-GmbH) and custodians (e.g. Donner & Reuschel AG) as well as systemically important institutions such as dwpbank AG and is regularly audited by various Big 4 companies as part of the audits of the respective institutions.

Source: Press release Crypto Risk Metrics

For further reading on our recent developments and partnerships, check out the following articles:

• Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets

The post Crypto Risk Metrics and DTI Foundation Partner to Enhance ESG Data for Crypto-Assets appeared first on Crypto Risk Metrics | Crypto Risk Management.

Indirect cryptocurrency investments bear similar and sometimes greater risks, such as counterparty default risks, than direct cryptocurrency investments. For this reason, it seems advisable to use specialized risk management systems that adequately address the special requirements of this asset class, even for indirect investments via vehicles such as ETPs or ETCs. In the case of funds, the KVG is responsible for maintaining adequate systems and processes in accordance with KAMaRisk, while the depositary is responsible for reviewing their appropriateness.

Mr. Pingel, as Head of Risk Management & Data Governance at HANSAINVEST, you are responsible for compliance with regulatory requirements and have been managing the open-ended special AIF “BIT Crypto Opportunities”, which invests directly in crypto assets, since January 2022. What is your current opinion of the market situation in the crypto sector?

The approval of Bitcoin ETFs in the United States and the current discussions surrounding the possible approval of Ether ETFs are also causing cryptocurrency prices to rise sharply at present. Against the backdrop of the recent Bitcoin halving, there is further upside potential from a technical perspective. We are also noticing this development on the allocation side: asset managers are currently significantly increasing their positions in this segment.

Which vehicles are generally used for investments in cryptocurrencies?

Along with our sister company Bankhaus DONNER & REUSCHEL as custodian, we are one of the few capital management companies that can map both indirect investments via so-called Delta 1 certificates and direct investments in cryptocurrencies. As I mentioned at the beginning, we can now look back on more than two years of practice in this area. It is important for me to emphasize that we did not take the decision to allow our customers to make indirect and direct cryptocurrency investments lightly: This was preceded by an extensive project in which we took a close look at the various risk scenarios and took appropriate mitigation measures and coordinated them with the custodian.

That sounds fascinating. What is so different about cryptocurrencies?

A clear distinction must be made here between different risk scenarios. In the case of direct cryptocurrency investments, the operational risk is of course a very decisive factor, as new settlement systems are used here for the capital management company, which must be checked accordingly. Indirect investments in cryptocurrencies are only “seemingly” safer. The risks associated with the technology or certain elements used are also relevant here – regardless of whether the asset is held directly or indirectly. In addition, however, the counterparty risk of the issuer must potentially be taken into account.

What exactly are you hinting at?

There are different attack vectors for blockchain ecosystems – the collapse of the TerraLuna ecosystem, for example, where several hundred million USD vanished into thin air virtually overnight, is a particularly impressive example of this.

What conclusions have you drawn from this?

At HANSAINVEST, we made the decision early on to use the Crypto Risk Metrics risk management system, which was developed specifically for monitoring risks in the area of blockchain infrastructures and is also used for tokenized securities. We use the system for monitoring and use it explicitly not only for direct investments, but also for indirect investments, for example via ETPs. If you ask around the market, we take the legal situation very seriously, which serves to protect our investors and the custodian is happy with this.

Finally, why don’t you reveal one or two “secrets” from the risk management system?

Revealing a secret makes the construct absurd. What I personally find very exciting is the inclusion of possible staking bonds and corresponding shock scenarios, which can lead to the issuer becoming insolvent in the event of high staking ratios. This is a relevant risk vector that I have rarely seen covered in discussions with colleagues. Or the possibility of being able to track the flows of ETPs directly on-chain – provided the addresses are public or, as in the Crypto Risk Metrics Tool, there are direct agreements with some ETP issuers.

Source: Interview Crypto Risk Metrics and Falko Pingel, HANSAINVEST

For further reading on our recent developments and partnerships, check out the following articles:

• Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets

The post Risk Management for Direct and Indirect Investments in Cryptocurrencies appeared first on Crypto Risk Metrics | Crypto Risk Management.

With the authorisation of the Bitcoin ETF by the SEC, the interest of private and institutional investors in digital assets has reached a new high. Cryptocurrencies have steadily established themselves as an asset class, meaning that the need for professional data provision is now also increasing. Regulatory requirements are also coming soon, as the EU’s MiCAR directive requires the provision of ESG data from 1 January 2025.

Preparing for MiCAR with Crypto Risk & Crypto ESG Data

With the IDW PS 951-certified risk management solution “Crypto Risk Metrics”, Infront will ensure the provision of risk and ESG data in digital and cryptographic assets in the future, significantly expanding the offering of price data. This will enable wealth and asset managers using Infront’s solutions to easily offer their clients an even broader range of information and open the door to investing in digital assets. At the same time, the implementation also ensures regulatory compliance for the coming years.

Udo Kersting, Head of Germany at Infront, commented: “Since the recent Bitcoin ETF approval we have seen increased interest from banks and asset managers in the EU to become active in the area of digital assets and demand increase from local customers for Bitcoin and Co. is also steadily increasing. As a result, the requirements for suitable data solutions are also increasing, in order to map risk profiles and sustainability requirements in the best possible way. By partnering with the market leader in this still young field, we are expanding our options for our institutional clients.

Tim Zölitz, CRO of Crypto Risk Metrics, adds: “Since 2020, we have consistently focussed our activities on regulated market participants. As the market matures, further professionalisation in the direction of risk management, market conformity assessment logics and ESG reporting is logical. And of course we are delighted that, in addition to private banks and custodians, systemically important institutions are now also relying on our tools and data. Through the cooperation with Infront, we are further expanding our services – and by constantly developing ourselves further, we ensure that we remain up to date with regard to regulatory or market adjustments.”

About Infront  
Infront, the European market leader in financial market data solutions, provides user-friendly and reliable solutions that help financial professionals find the information they need and make more informed decisions – faster, easier and smarter. Infront offers a powerful combination of global market data, news, analytics and trading along with integrated solutions for data feeds, portfolio management and advice, regulatory compliance and calculations. Infront’s solutions are used by more than 3,000 clients with over 90,000 professional users.

Source: Press release Infront

The post Infront Will Implement Crypto Risk Metrics to Provide Risk and ESG Data for Digital Assets appeared first on Crypto Risk Metrics | Crypto Risk Management.