European Banking Authority releases MiCA-related consultation papers
On 20 October 2023, the European Banking Authority (EBA) released a comprehensive series of consultation papers pertaining to the Markets in Crypto-Assets Regulation (MiCA).
1. The EBA consults on draft technical standards on the procedure for the approval of white papers of asset-reference tokens issued by credit institutions under the Markets in Crypto-Assets Regulation
The EBA issued a Consultation Paper seeking input on draft regulatory technical standards (RTS) governing the approval process for white papers related to asset-reference tokens (ARTs) issued by credit institutions. The RTS will aim to standardise the application and assessment process to approve white papers about ARTs issued by credit institutions across the European Union, establishing clear steps and timeframes to be followed by credit institutions and the relevant competent authorities. Stakeholders are invited to provide their comments during the consultation period until 22 January 2024.
The consultation paper can be found here.
2. The EBA consults on draft Guidelines on internal governance arrangement for issuers of asset-referenced tokens under the Markets in Crypto-Assets Regulation
The EBA has launched a public consultation concerning its newly proposed Guidelines for internal governance arrangements applicable to issuers of ARTs under the MiCA Regulation. These Guidelines set out the governance provisions that issuers of ARTs should adhere to, considering the principle of proportionality. This governance framework is intended to ensure effective risk management for all activities related to ARTs issuance, encompassing operational risks, including fraud, cyber, and compliance risks. Furthermore, the provisions aim to safeguard the interests of consumers and investors. The consultation period for these guidelines remains open until 22 January 2024.
The consultation paper can be found here.
3. The EBA consults on draft technical standards on governance arrangements of the remuneration policy of issuers of significant ARTs and e-money tokens (EMTs) under the Markets in Crypto-Assets Regulation
The EBA has initiated a public consultation regarding its draft Regulatory Technical Standards (RTS) outlining the minimum requirements for governance arrangements in remuneration policies of issuers of significant ARTs and e-money tokens (EMTs) under the MiCA Regulation. These draft RTS define key governance processes concerning the adoption, implementation, and maintenance of remuneration policies and the critical policy elements to be included. Importantly, they also specify the arrangements to be put in place when relying on third-party entities for operating the reserve of assets, for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public. Stakeholders are encouraged to participate in the consultation, remaining open until 22 January 2024.
The consultation paper can be found here.
4. EBA and ESMA consult on two sets of Joint Guidelines on suitability assessments of the management body and holders of qualifying holdings under MiCA Regulation
The EBA and the European Securities and Markets Authority (ESMA) published a Consultation Paper inviting feedback on two sets of Joint Guidelines related to suitability assessments. These guidelines pertain to evaluating the suitability of individuals serving on the management bodies and individuals with qualifying holdings in entities which are issuers of ARTs or CASPs. The primary objective of these guidelines is to provide transparency and harmonisation in the criteria for assessing the fitness of management body members and qualifying shareholders. This harmonisation aims to mitigate the potential for regulatory arbitrage. Stakeholders are encouraged to provide their input on these guidelines, with the consultation period running until 22 January 2024.
The consultation paper can be found here.
Our guide and blog posts on MiCA can be found here and here.
