On May 7, the European Banking Authority (EBA) published three sets of final draft regulatory technical standards (RTS) and one set of final draft implementing technical standards (ITS). They relate to the authorization as issuer of asset-referenced tokens (ARTs), to the information for the assessment of acquisition of qualifying holdings in issuers of ARTs, and to the procedure for the approval of white papers for ARTs issued by credit institutions under the Markets in Crypto-assets Regulation (MiCAR).
Together these technical standards are key to regulate access to the EU market by applicant issuers of ARTs and persons intending to exercise significant influence on these undertakings via the acquisition of qualifying holdings.
RTS on authorization
The RTS on authorization, in accordance with MiCAR Article 18(6), lays down the information requirements to be included when applying for authorization to offer to the public or seek admission to trading of an ART, so to enable the comprehensive assessment of the application by the competent authority.
Following the public consultation, the scope of the authorization has been amended to clarify that (a) the applicant issuer may only be a legal person or undertaking established in the EU, and b) whilst the issuance is not subject to authorization, which only covers the public offer or the admission to trading, an application may only be submitted by an applicant issuer, therefore only an issuer may be granted authorization.
ITS on authorization
The ITS on authorization, in accordance with MiCAR Article 18(7), sets out the standard application letter and the application template and clarify the process relating to the assessment of completeness of the application by the competent authority. As credit institutions are only required to receive approval to publish a white paper, the RTS and ITS on authorization do not apply to credit institutions.
RTS on the detailed content of the information
The RTS on the detailed content of the information to be included in the notification for the proposed acquisition of direct or indirect qualifying holdings, in accordance with MiCAR Article 42(4), lays down the information requirements that are necessary to the competent authority to carry out the prudential assessment in case of proposed acquisitions in issuers of ARTs that are not credit institutions.
This information covers five criteria relating to:
- the reputation of the proposed acquirer;
- the suitability of any person who will direct the target undertaking;
- the financial soundness of the proposed acquirer;
- the sound and prudent management of the target undertaking following the acquisition; and
- suspicion that money laundering of terrorist financing is committed or attempted or that it may increase following the acquisition.
Following public consultation, and considering the request of personal data in case of the application for authorization and of notification of proposed acquisition of qualifying holdings, some recitals reminding the obligation to comply with the privacy regime have been added both in the RTS on information for authorization and in the RTS on information for notification of proposed acquisition of qualifying holdings.
Credit institutions, unlike other issuers of ARTs, do not require authorization to issue ARTs but must notify the competent authorities, and the white paper must be submitted to the competent authority for approval.
RTS on the procedure for the approval of white papers
The RTS on the procedure for the approval of white papers for ARTs issued by credit institutions sets out the timeframes that credit institutions, competent authorities and the ECB or other central banks must follow during the procedure for the approval of a crypto-asset white paper.
This RTS been developed in accordance with MiCAR Article 17(8) and in close cooperation with ESMA and the ECB.
When will MiCAR apply?
Regulation (EU) 2023/1114 on Markets in Crypto-assets establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union. It came into force on June 29, 2023, and becomes fully effective on December 30, 2024. However, issuers of stablecoins will become subject to certain provisions on June 30, 2024 and provisions relating to ARTs will also be applicable from June 30, 2024.
Within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and electronic money tokens (EMTs) and issuing such tokens. Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant. See also The 10 things you need to know about MiCAR.