​The EBA publishes regulatory products under the Markets in Crypto-Assets Regulation​

The European Banking Authority (EBA) publishes today the package of technical standards and guidelines under MiCAR on the topics of reporting, liquidity stress testing and supervisory colleges. This package completes the delivery of EBA technical standards under MiCAR. The package of EBA regulatory products comprises:

1. Final draft Regulatory Technical Standards (RTS) on the use of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) denominated in a non-EU currency as a means of exchange. The draft RTS specify the methodology to be applied by issuers of ARTs and of EMTs denominated in a non-EU currency for estimating the number and value of transactions associated to uses of these tokens “as a means of exchange”, for the purpose of the reporting under MiCAR. The drat RTS 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.

2. Final draft Implementing Technical Standards (ITS) on the reporting obligations of issuers of ARTs and EMTs denominated in a non-EU currency, and of crypto-asset service providers (CASPs). The final draft ITS 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. These reporting templates will assist the significance assessment of the tokens; provide information on whether the threshold defined in Article 23 of MiCAR has been met, therefore restricting the issuance of a token; and being the only reporting obligation set out in MiCAR for the issuer, serves general supervisory reporting purposes as well. The draft ITS also provide templates and related instructions that CASPs must provide to issuers of ARTs and of EMTs denominated in a non-EU currency. The draft ITS specify the reporting frequency and related reference and remittance dates as well. The EBA will also develop the related technical package, including the Data Point Model (DPM) and validation rules, and will publish it with its 4.0 Reporting framework release. 

3. Guidelines (GL) on liquidity stress testing. The Guidelines lay out the risks to be covered in the liquidity stress testing and identify the common reference parameters of the stress test scenarios to be included in the liquidity stress testing to be applied. Following application of the Guidelines, the supervisor may strengthen the liquidity requirements of the relevant issuer to cover those risks based on the outcome of the liquidity stress testing.

4. Final draft RTS on supervisory colleges. The draft RTS specify the conditions under which certain entities, such as custodians of the reserve of assets, trading platforms and crypto-asset service providers (CASPs) providing custody and administration of crypto-assets on behalf of clients, are to be deemed “the most relevant” in their category, and the conditions under which a significant ART or EMT is to be deemed to be “used at large scale”, for the purpose of determining the composition of a supervisory college under MiCAR. The EBA is required to establish such a college in accordance with MiCAR for each significant ART and significant EMT. In addition, the RTS specify the general conditions for the functioning of supervisory colleges, including aspects related to participation in college meetings, voting procedures, exchange of information and the entrustment of tasks among college members.

Legal basis and next steps

The draft RTS on the use of ARTs and EMTs denominated in a non-EU currency as a means of exchange have been developed in accordance with Article 22(6) of MiCAR which mandates the EBA, in close cooperation with the European Central Bank (ECB), to develop the 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. In accordance with Article 58(3) of MiCAR, these RTS shall also apply mutatis mutandis to EMTs denominated in a non-EU currency.

The ITS on the reporting obligations of issuers of ARTs and EMTs denominated in a non-EU currency, and of CASPs have been developed in accordance with Article 22(7) of MiCAR, which mandates the EBA to 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 ITS shall also apply mutatis mutandis to EMTs denominated in a non-EU currency.

The Guidelines on liquidity stress testing have been Article 45(8) of MiCAR which mandates the EBA, in close cooperation with the European Securities and Markets Authority (ESMA) and the ECB, to issue guidelines with a view to establishing the common reference parameters of the stress test scenarios to be included in the stress tests referred to in Article 45(4) of MiCAR.

The draft RTS on supervisory colleges have been developed in accordance with Article 119(8) of MiCAR which mandates the EBA, in cooperation with ESMA and the ECB, to develop draft regulatory technical standards (RTS) specifying: (i) the conditions under which the entities referred to in Article 119(2)(d), (e), (f) and (h) of MiCAR are to be considered “the most relevant” in their category; (ii) the conditions under which it is considered that ARTs and EMTs are “used at large scale”, as referred to in Article 119(2)(l) of MiCAR; and (iii) the details of the practical arrangements regarding the functioning of supervisory colleges under MiCAR.