On 8 March 2024, the European Banking Authority (EBA) issued a consultation on draft guidelines on redemption plans under Articles 47 and 55 of the Markets in Crypto-Assets Regulation (MiCAR). By way of background, under MiCAR, a redemption plan must be developed by each issuer of an asset-referenced token (ART) or of an e-money token … Continue Reading
In our 2024 FinTech Outlook, our lawyers from across Europe, the Middle East, Asia and the US share their insights on what to expect across the regulatory landscape in relation to FinTech and cryptoassets in 2024.… Continue Reading
On 14 December 2023, the Basel Committee on Banking Supervision (Basel Committee) issued a consultative document setting out proposed amendments to its standard on banks’ exposures to cryptoassets. In December 2022, the Basel Committee published its standard on the prudential treatment of banks’ exposures to cryptoassets. The standard is set out in a new chapter … Continue Reading
On 7 December 2023, the European Banking Authority (EBA) issued a consultation paper containing draft regulatory technical standards in accordance with Article 32(5) of the Markets in Crypto-Assets Regulation (MiCAR) which mandates the Authority to specify the requirements for the conflicts of interest policies and procedures for issuers of asset-referenced tokens (ARTs) as well as … Continue Reading
On 28 November 2023, the Financial Stability Board (FSB) published a report on the financial stability implications of multifunction crypto-asset intermediaries (MCIs). The report defines MCIs as individual firms, or groups of affiliated firms, that combine a broad range of crypto-asset services, products and functions typically centred around the operation of a trading platform. The … Continue Reading
On 27 November 2023, the European Banking Authority (EBA) published a final report containing updated guidelines on risk-based supervision. The guidelines have been amended so that they extend to anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors of crypto-asset service providers (CASPs) as defined in the Regulation on markets in crypto-assets (MiCA). Article … Continue Reading
On 16 November 2023, the European Securities and Markets Authority (ESMA) published a speech by its chair, Verena Ross, entitled Innovation with protection: the next steps on the MiCA journey. In the speech Verena Ross covers some of the key features of ESMA’s October consultation paper on the second package of level 2 measures for … Continue Reading
On 14 November 2023, the European Central Bank published a speech by Andrea Enria (Chair of ECB Supervisory Board) entitled ‘Regulating crypto finance: taking stock and looking ahead’. In his speech Mr Enria: Among other things Mr Enria notes that as things currently stand, the ECB considers it very difficult to include in the scope … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published three consultations on draft regulatory technical standards (RTS) to specify the liquidity requirements of the reserve of assets, the highly liquid financial instruments in the reserve of assets and the minimum content of the liquidity management policy and procedures of relevant issuers of tokens. The … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published two consultation papers on draft regulatory technical standards (RTS) on own funds requirements and stress testing issuers under Article 45(7)(c) of the Markets in Crypto-assets Regulation (MiCA). The draft RTS on the adjustment of own funds requirements and design of stress testing programmes for issuers … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper 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’. … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards (RTS) on supervisory colleges under Article 119(8) of the Markets in Crypto-assets Regulation (MiCA). The proposals set out in the draft RTS specify: (i) the criteria to be used for determining “the most relevant” custodians of the … Continue Reading
On 8 November 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on recovery plans under Articles 46 and 55 of the Markets in Crypto-assets Regulation (MiCA). Through recovery planning, issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs) should prepare in advance to face adverse scenarios that may impact their … Continue Reading
On 20 October 2023, the European Banking Authority (EBA) published for consultation two draft regulatory technical standards (RTS) that it is mandated to develop under the Regulation on markets in crypto-assets (MiCA): Draft RTS the minimum content of the governance arrangements on the remuneration policy By way of background, MiCA requires issuers of significant ARTs … Continue Reading
On 20 October 2023, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued for consultation their draft joint guidelines on suitability assessment of members of management body of issuers of asset-referenced tokens (ARTs) and of crypto-asset service providers (CASPs), and of shareholders and members with qualifying holdings in issuers of … Continue Reading
On 20 October 2023, the European Banking Authority (EBA) issued for consultation draft guidelines on internal governance of issuers of asset-referenced tokens (ARTs) under the Regulation on Markets in Crypto-Assets (MiCA). By way of background, MiCA sets out governance requirements for issuers of ARTs and, in particular, stresses that the management body is responsible to … Continue Reading
On 17 October 2023, the European Securities and Markets Authority (ESMA) published a statement, clarifying the timeline for MiCA and encouraging market participants and Member State national competent authorities (NCAs) to start preparing for the transition. The statement makes the following key points: The ‘grand-fathering period’ refers to the optional transitional measure under MiCA that grants Member … Continue Reading
On 17 October 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultation document on the disclosure of crypto-asset exposures. The consultation document follows the Basel Committee’s paper on the prudential treatment of cryptoasset exposures which was published in December 2022 and set out the prudential requirements for banks’ exposures to cryptoassets. In … Continue Reading
On 17 October 2023, the European Securities and Markets Authority (ESMA) published a letter to Member State national competent authorities (NCAs), where it sets out its proposed approach to ensure a smooth transition towards the upcoming application of the Markets in Crypto-Assets Regulation (MiCA). In its letter, ESMA flags the risks of “forum shopping”, whereby … Continue Reading
On 11 October 2023, the European Securities and Markets Authority (ESMA) published two articles on decentralised finance (DeFi), one on developments and risks in the EU market and another on a methodology for the categorisation of smart contracts. In these articles, ESMA highlighted risks to consumers, new forms of market abuse, and possible vulnerabilities to financial stability. DeFi: … Continue Reading
On 7 September 2023, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) published a joint synthesis paper on policies for crypto-assets. The report synthesises the IMF’s and FSB’s policy recommendations and standards. The report illustrates macroeconomic and financial stability implications of crypto-asset activities, how they may interact, and how the IMF and … Continue Reading
On 12 July 2023, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published for public consultation various draft technical standards that they are mandated to develop under Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA). Whilst the draft rules published by ESMA focus on the relevant requirements for crypto-asset service … Continue Reading
On 17 July 2023, the Financial Stability Board (FSB) announced that it has finalised the global regulatory framework for crypto-asset activities by publishing two distinct sets of recommendations. Both sets of recommendations are addressed to financial regulatory, supervisory and oversight authorities. The recommendations are: The revised recommendations are:… Continue Reading
On 11 July 2023, the Bank for International Settlements (BIS) published a report on the crypto ecosystem: key elements and risks. The report reviews the key elements of the crypto ecosystem and assesses its structural flaws. It also discusses the risks that it poses and the options for addressing them. It also identifies data gaps … Continue Reading