The EBA consults on the reporting of transactions with asset-referenced tokens and e-money tokens denominated in a non-EU currency under MiCAR

The European Banking Authority (EBA) today launched a consultation under the Markets in Crypto-Assets Regulation (MiCAR) on draft Regulatory Technical Standards (RTS) specifying the methodology to be applied by issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs) denominated in a non-EU currency for reporting transactions associated to uses of these tokens “as a means of exchange”. In addition, the EBA also consulted on draft Implementing Technical Standards (ITS) specifying the related reporting requirements under MiCAR. These consultations together with other consultations papers published today form part of the third batch of MiCAR policy products.  All consultations run until 8 February 2024.

The proposals set out in the draft RTS aim to clarify the scope of the transactions associated to the use of ARTs and EMTs denominated in a non-EU currency as a means of exchange that should be reported by issuers, and how issuers should estimate the number and value of such transactions. The draft RTS also aim at contributing to the objective of MiCAR of monitoring and preventing risks that the wide use of ARTs and of EMTs denominated in a non-EU currency as a means of exchange may have on monetary policy transmission and monetary sovereignty within the EU.

The draft ITS, in turn, provide specific templates and related instructions for the issuers of ARTs and of EMTs denominated in a non-EU currency to comply with their reporting obligations. The draft ITS also provide templates and related instructions that crypto-asset service providers (CASPs) must provide to issuers of ARTs and of EMTs denominated in a non-EU currency.

Consultation process

Comments on consultation papers 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 8 February 2024.

The EBA will hold a virtual public hearing on these consultation papers on 17 January 2024 from 10:00 to 12:30 CET. The EBA invites interested stakeholders to register using this link by 15 January 2024 at 16:00 CET. 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 these draft RTS and ITS in accordance with Articles 22(6) and 22(7) of Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR), which mandates the EBA to develop two technical standards: (i) draft RTS specifying the methodology to estimate the quarterly average number and average aggregate value of transactions per day that are associated to uses of an ART as a means of exchange within a single currency area”, and (ii) draft ITS to establish standard forms, formats and templates for the purposes of the reporting in Article 22(1), and for the purpose of the reporting by CASPs to the issuer in accordance with Article 22(3). In accordance with Article 58(3) of MiCAR, these RTS and ITS shall also apply mutatis mutandis to EMTs denominated in a non-EU currency.

Background 

MiCAR establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the EU. It came into force on 29 June 2023, and the provisions relating to offering to the public and admission to trading of ARTs and EMTs will be applicable from 30 June 2024.

To allow competent authorities to monitor and supervise the use of ARTs and of EMTs denominated in a non-EU currency, Articles 22(1) and 22(3) of MiCAR set out reporting obligations from the issuer of such tokens to the competent authority, and from CASPs providing services related to these tokens to the issuer.  These data will also be used by the EBA to assess whether an ART or EMT denominated in a non-EU currency meets the criteria in Articles 43(1) and 56(1) of MiCAR to be classified as significant, as well as by the competent authority to assess whether the thresholds in Article 23 of MiCAR are met.