Standardised classification test:

• A uniform test has been introduced to classify crypto-assets and determine their regulatory status under MiCAR.
• This ensures that market participants and regulators apply a consistent framework when assessing crypto-assets.

Templates for legal opinions and explanations:

The Guidelines include templates for the regulatory classification of:

• Asset-Referenced Tokens (ARTs): White papers would be accompanied by a legal opinion explaining why an ART is not an electronic money token (EMT) and why it is not excluded from the scope of MiCAR.
• Other Crypto-Assets: White papers must include explanations which clarify the reasons that the crypto-asset is not an EMT, ART, or a crypto-asset excluded from MiCAR.

Promoting regulatory convergence:

These measures aim to reduce regulatory arbitrage, enhance consumer and investor protection, and establish a level playing field in the crypto-asset market.

The Guidelines will be translated in all official EU languages and take effect three months after the publication of the translations on the ESA’s websites. These efforts mark a crucial step toward a more transparent and regulated crypto-asset landscape.

MiCAR, which regulates the issuance and trading of ARTs, EMTs, and other crypto-assets, seeks to ensure market integrity and financial stability while providing robust protections for consumers and investors. By harmonising classification practices, the ESAs aim to streamline the application of MiCAR.

For more details, the EBA’s press release can be found here and the Guidelines here.