On 18 March 2021, the Portuguese Presidency of the Council hosted a meeting of a working group where representatives of Member States continued discussions over the proposed regulation on markets in crypto-assets (MiCA). The agenda for the meeting included discussion on the MiCA provisions concerning cross-border and supervision issues, as well as the Presidency’s drafting suggestions on select Title II and Title II MiCA provisions. Key points to note include:

  • Cross-border and supervision issues: responding to comments raised by some Member States in previous meetings, the Presidency proposed certain amendments to the notification requirements applicable to issuers and crypto-asset service providers. It also addressed the issue of quantitative thresholds for the purpose of classifying an asset-referenced token as “significant” and prospective inclusion of additional criteria for classifying asset-referenced tokens and/or e-money tokens as “significant”. The Presidency also sought to clarify issues concerning supervisory competences over significant asset-referenced and e-money tokens, including the number and composition of colleges and the powers of central banks.
  • Crypto-assets: based on feedback received from Member States to date, the Presidency provided for the delegations’ consideration additional drafting amendments on certain provisions concerning crypto-assets and including, among other, content and form of the white paper, its notification requirements, and subsequent modifications.
  • Issuance of asset-referenced tokens (stablecoins): the Presidency proposed for Member States’ consideration certain drafting amendments addressing, among other, authorisation requirements to offer asset-referenced tokens to the public and to seek their admission to trading on a trading platform for crypto-assets and including clarification of the concept of the “issuer”. The Presidency also sought to clarify the requirements applicable to credit institutions issuing asset-referenced tokens.
  • Concept of asset-referenced tokens: following on discussions in previous working group meetings, the Presidency further elaborated on its proposal concerning classification of different forms of asset-referenced tokens, including inter-linkages with the MiFIR regime and circumvention risks.

The next meeting of the working group will take place on Friday, 9 April 2021. Separately, in the European Parliament members of the Economic and Monetary Affairs (ECON) committee will meet on 14 April 2021 for the presentation of the draft report on the MiCA proposal (see agenda).