The EBA consults on Guidelines on redemption plans under the Markets in Crypto-Assets Regulation

The European Banking Authority (EBA) today launched a consultation  on the Guidelines for the plans to orderly redeem asset-referenced or e-money tokens in the event that the issuer fails to fulfil its obligations under the Markets in Crypto assets Regulation (MiCAR). The Guidelines specify the content of the redemption plan, the timeframe for review and the triggers for its implementation. The Guidelines  are addressed to issuers of asset-referenced tokens (ART) and of e-money tokens (EMT), and to competent authorities under MiCAR. The consultation run until 10 June 2024.

In particular, the draft Guidelines: 

• clarify the main principles governing the redemption plan, such as the equitable treatment of token holders, and describe the main steps for the orderly and timely implementation of the plan, including the communication plan, the content of the redemption claims and the distribution plan;

• cover the case of pooled issuance, where the same token is issued by multiple issuers; and

• outline the triggers for the activation of the plan by the competent authority and the cooperation with the prudential and resolution authorities. 

Consultation process

Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 10 June 2024. 

The EBA will hold a virtual public hearing on the consultation paper on 22 May from 14:00 to 16:00 Paris time. The EBA invites interested stakeholders to register using this link  by 17 May at 16:00 CEST.  The dial-in details will be communicated to those who have registered for the meeting.

All contributions received will be published following the end of the consultation, unless requested otherwise.

Legal basis

The EBA has developed the draft Guidelines on redemption plans based on the mandate set out in Article 47(5) of MiCAR. By virtue of the cross-reference set out in Article 55 MiCAR, the Guidelines also cover issuers of e-money tokens, as applicable. 

Background

Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR) establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU). It came into force on 29 June 2023, and the provisions relating to ARTs and EMTs will be applicable from 30 June 2024.

Among the activities within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and 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. Additionally, the EBA is mandated to develop 17 technical standards and guidelines under MiCAR to further specify the requirements for ARTs and EMTs, and an additional 3 mandates jointly with ESMA (and, in one case, also with the European Insurance and Occupational Pensions Authority - EIOPA).