What’s about to change in the cryptocurrency market? Check out the new technical standards

In the rapidly evolving world of EU legislation on crypto-asset markets, on May 7, 2024, the European Banking Authority (EBA) issued the final draft regulatory technical standards (RTS) and a package of final draft implementing technical standards (ITS).

This is important news for asset-linked token (ART) issuers.

Who is affected by the new EBA rules?

The new EBA regulation affects issuers of asset-linked tokens (ART).

According to Regulation (EU) 2023/1114 of the European Parliament and the Council, an asset-linked token is a crypto-asset that maintains a stable value by being linked to another value, a right, or a combination thereof.

The issuance of such tokens requires authorization in accordance with Article 16 of the MiCA. The new regulations are aimed at standardizing requirements and facilitating the preparation of appropriate internal documentation.

What does the EBA’s regulatory package include?

The final draft package includes the following regulatory technical standards (RTS):

• RTS on the approval of disclosure documents for asset-linked tokens issued by credit institutions (Article 17(8) MiCA)
• RTS on the information that must be included in the application for authorization to offer ARTs to the public or apply for admission to trading of such tokens (Article 18(6) MiCA)
• RTS Regarding the detailed content of the information necessary to assess the proposed acquisition of significant stakes in ART issuers (Article 42(4) MiCA),
• Implementing Technical Standards (ITS) specify standard forms, templates, and procedures for applications for authorization to offer ART to the public or apply for admission of such tokens to trading (Article 18(7) MiCA).

License to issue ART, and the RTS and ITS

The draft RTS includes a detailed list of information that must be included in a license application submitted under Article 18 of the MiCA. Among these, information such as the issuer’s identity, business program, business model, risk management strategy, risk assessment, financial information, liquidity management system, and evaluation of members of the governing body are required.

The ITS specifies the procedure for submitting an application to the competent authority and indicates when an application is considered complete. The drafts of the RTS and ITS will be submitted to the European Commission for approval and then published in the Official Journal of the European Union. If you wish to familiarize yourself with the contents of the draft RTS and ITS, you can find them on this page. 

What are the implications for ART issuers?

The new standards are designed to standardize and facilitate the submission of required information to the relevant regulatory authorities. ART issuers should familiarize themselves with their contents and adjust their internal procedures to comply with all requirements.

Prepare for the upcoming changes today

If you have any questions about the new rules or need assistance complying with the requirements, please don’t hesitate to contact our team.

We are on hand to assist you in navigating through all the changes and ensuring that you meet the new standards. Contact us now to stay up to date with the latest regulations in the cryptocurrency market!

Write to us at [email protected].