A&O Shearman | FinReg | European Banking Authority Publishes Package of Draft Regulatory and Implementing Technical Standards and Guidelines under the EU Markets in Crypto Assets Regulation
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  • European Banking Authority Publishes Package of Draft Regulatory and Implementing Technical Standards and Guidelines under the EU Markets in Crypto Assets Regulation

    June 19, 2024

    The European Banking Authority has published its final package of regulatory and implementing technical standards and guidelines under the EU Markets in Crypto Assets Regulation. The package consists of:
    • final draft RTS, which specify the methodology to be applied by issuers of asset-referenced tokens and non-EU currency denominated e-money tokens for estimating the number and value of transactions associated with uses of these tokens "as a means of exchange", for the purpose of the reporting under MiCAR;
    • final draft ITS on the reporting obligations of issuers of ARTs and non-EU currency denominated EMTs and of crypto-asset service providers (CASPs)—the ITS provide specific templates and related instructions for the issuers of ARTs and of EMTs denominated in a non-EU currency to comply with their reporting obligations. These reporting templates will assist the significance assessment of the tokens. The draft ITS also provide templates and related instructions that CASPs must provide to issuers of ARTs and of EMTs denominated in a non-EU currency. The EBA will develop the related technical package, including the Data Point Model and validation rules, and will publish it with its 4.0 Reporting framework release;
    • guidelines on liquidity stress testing, which lay out the risks to be covered in the liquidity stress testing and identify the common reference parameters of the stress test scenarios to be included in the liquidity stress testing to be applied; and
    • final draft RTS on supervisory colleges—these specify the conditions under which certain entities, such as custodians of the reserve of assets, trading platforms, and CASPs providing custody and administration of crypto-assets on behalf of clients, are to be deemed "the most relevant" in their category, and the conditions under which a significant ART or EMT is to be deemed to be "used at large scale" for the purpose of determining the composition of a supervisory college under MiCAR. The EBA is required to establish such a college in accordance with MiCAR for each significant ART and significant EMT. In addition, the RTS specify the general conditions for the functioning of supervisory colleges, including aspects related to participation in college meetings, voting procedures, exchange of information, and the entrustment of tasks among college members.

    The final draft ITS and RTS will be submitted to the European Commission for endorsement following which they will be subject to scrutiny by the European Parliament and the Council of the European Union before being published in the Official Journal of the European Union. The guidelines will be translated into the official EU languages and published on the EBA website. The deadline for competent authorities to report on whether they comply with the guidelines will be two months after the publication of the translations.

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    Topic: FinTech