New EBA and ESMA Guidelines: Key Changes for Management and Shareholders in the MiCA Sector

On June 27, 2024, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published joint guidelines for issuers of asset reference tokens (ARTs) and service providers in the field of cryptographic assets (CASP) under the Markets in Crypto Assets Regulation (MiCA).

These guidelines focus on assessing the suitability of members of the management body, as well as shareholders and individuals holding significant blocks of shares or stocks.

First Set of Guidelines: Building Trust and Stability in the Crypto Ecosystem

The first set of guidelines aims to ensure the operation of appropriate management bodies in ART and CASP issuers. This initiative is designed to increase confidence in the financial system, thereby supporting the development of a healthy ecosystem for cryptographic assets.

Purpose of the First Set of Guidelines

According to information published on the EBA website, the guidelines provide common criteria for assessing the:

• knowledge, 
• skills, 
• experience, 
• reputation, 
• honesty,
• integrity of members of the management body.

Additionally, the guidelines evaluate whether these individuals can allocate sufficient time to perform their duties, ensuring proper management of these entities.

Second Set of Guidelines: New Tools for Regulators

The second set of guidelines introduces tools that allow regulators to assess the influence that shareholders (both direct and indirect) have on the supervised entities in which they participate. This package supports market supervisors in performing the crucial “gatekeeping” function.

Purpose of the Second Set of Guidelines

These guidelines, developed through a common EU methodology, enable the evaluation of the suitability of persons managing and holding significant blocks of shares, either directly or indirectly. This is crucial for issuing permits to act as ART or CASP issuers and for conducting a prudential assessment of proposed acquisitions.

A Step Towards Unifying the Cryptoasset Market

This initiative represents an important step in unifying the cryptoasset market, which is gradually becoming regulated and standardized. These efforts are expected to increase trust, reputation, and the popularity of solutions offered in this market.

The full text of the guidelines is available at the following link: EBA and ESMA Publish Guidelines.