European Banking Authority Publishes Regulatory Products under the Markets in Crypto-Assets Regulation

Under the Markets in Crypto-Assets Regulation, the European Banking Authority has published a package of technical standards and guidelines on prudential matters, namely own funds, liquidity requirements, and recovery plans. The package of EBA regulatory products includes the following:

• Final draft regulatory technical standards specifying adjustment of own funds requirement and minimum features of stress testing programs of issuers of asset-referenced tokens and of e-money tokens subject to such requirements.
• Final draft RTS specifying the procedure and timeframe for an issuer to adjust the amount of its own funds to three percent of the average amount of the reserve of assets when the relevant issuer is issuing an ART or EMT classified as "significant."
• Final draft RTS further specifying the liquidity requirements of the reserve of assets. The draft RTS set specific minimum percentages of the reserve of assets according to daily and weekly maturities and establish the minimum amount of deposits in each official currency referenced.
• Final draft RTS to specify the highly liquid financial instruments having minimal market, credit and concentration risk. These draft RTS define highly liquid financial instruments, set a concentration limit by issuer of highly liquid financial instruments, taking into account the prudential framework applicable to Undertakings for the Collective Investment in Transferable Securities, and provide an unwinding mechanism for secured funding, secured lending or collateral swap transactions for determining the amount of the reserve of assets.
• Final draft RTS to specify the minimum content of the liquidity management policy and procedures for identifying, measuring and managing liquidity risks of issuers of crypto-assets.
• Guidelines on recovery plans specifying the format and the content of the recovery plan that issuers of ARTs and EMTs need to develop and maintain.

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