On 13 June 2024, the European Banking Authority (EBA) issued a package of technical standards and guidelines under the Markets in Crypto Assets Regulation (MiCAR).

The package comprises:

  • Final draft regulatory technical standards (RTS) specifying adjustment of own funds requirement and minimum features of stress testing programmes of issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs) subject to such requirements. The EBA has developed these draft RTS according to the mandate in Article 35(6) of MiCAR specifying the procedure and timeframe for an issuer of an ART to adjust to higher own funds requirements when this is deemed to have a higher degree of risk, the criteria for competent authorities to follow during the assessment of such higher degree of risk and the minimum requirements for the design of the stress testing programmes. The draft RTS also provide general rules to be followed by issuers of ARTs for the design, implementation and use of stress testing programmes and methodology.
  • Final draft RTS specifying the procedure and timeframe for an issuer to adjust the amount of its own funds to 3% of the average amount of the reserve of assets when the relevant issuer is issuing an ART or EMT classified as ‘significant’. The EBA has developed the draft RTS in accordance with the mandate given in Article 45(7)(c) of MiCAR.
  • Final draft RTS further specifying the liquidity requirements of the reserve of assets. The EBA has produced these draft RTS in accordance with its mandate under Article 36(4) of MiCAR. This provides that the EBA is to establish, in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank, a percentage of the reserve of assets with a maturity of no longer than 1 working day, an additional percentage of the reserve of assets with a maturity of no longer than 5 working days and any additional percentage of the reserve of assets with any maximum maturity that can be found relevant. Also, the draft RTS establish overall techniques for liquidity management to further specify the liquidity requirements of the reserve of assets. Moreover, the draft RTS also establish the specific minimum amount of deposits in each official currency referenced, which cannot be lower than 30% of the amount referenced in each official currency if the ART is not significant or 60% if the ART is significant.
  • Final draft RTS to specify the highly liquid financial instruments. With these draft RTS the EBA is complying with its mandate in Article 38(5) of MiCAR to specify the financial instruments that can be considered highly liquid and bearing minimal market risk, credit risk and concentration risk. With this the identification of eligible investments of the reserve of assets becomes harmonized and transparent.
  • Final draft RTS to specify the minimum content of the liquidity management policy and procedures. The draft RTS have been developed in accordance with the EBA’s mandate in Article 45(7)(b) of MiCAR to specify, in close cooperation with the ESMA, the cited minimum content of the liquidity management policy and procedures and related liquidity requirements.
  • Guidelines on recovery plans specifying the format and the content of the recovery plan that issuers need to develop and maintain. The guidelines specify the format and the information that should be contained in the recovery plan that issuers of ARTs and issuers of e-money tokens have to draw up and maintain according to Articles 46 and 55 of MiCAR.

The draft RTS will be submitted to the European Commission for endorsement, following which they will be subject to scrutiny by the European Parliament and the Council, before being published in the Official Journal of the European Union.

The final guidelines will apply from two months after publication of all the translations on the EBA website.