Cryptocurrencies

The European Banking Authority (EBA) has published a comprehensive set of standards and guidelines

The European Banking Authority (EBA) has published a comprehensive set of standards and technical guidelines under the Markets in Crypto-Asset Regulation (MiCA), providing regulatory guidance for asset tokens (ART) and electronic money tokens (EMT) across Europe.

The package covers six topics, from stress testing programs and asset reserves to recovery plans. Under MiCA, ARTs are tokens backed by assets such as commodities, real estate, or a basket of different assets, while EMTs maintain a stable value by pegging them to fiat currencies and trading them. using for payments, like a stablecoin.

More specifically, the Authority provides guidance to token issuers, notably on the need to have sufficient financial resources (equity) to cover potential risks. It also creates criteria for determining whether an issuer faces a higher degree of risk, which should lead to an increase in private fund reserves.

Draft EBA final report. Source: IBA

The EBA reports specify the procedure and deadline for issuers to adjust their own funds to 3% of the average reserve for assets classified as significant. The implementation plan must be submitted within 25 working days and its compliance must be achieved within a maximum of six months.

In addition, the European regulator sets minimum percentages of asset reserves based on daily and weekly maturities and limits the concentration of issuers on highly liquid financial instruments. One of the draft reports stated the following:

“The minimum deposits with credit institutions to be kept in the reserve of assets linked to non-critical tokens designated by official currencies must remain at 30% of the amount indicated, or at 60% if the token is large and does not exceed that -this ( …) ” .

Tokens tied to assets other than fiat currencies, such as commodities or real estate, can also be considered highly liquid. Likewise, the EBA sets limits on the number of these highly liquid financial instruments that a single issuer can offer.

Regarding recovery plans, the regulator incorporates feedback from the consultation period, describing the content of the communication and disclosure. It also introduces a new paragraph to clarify that the asset reserve requirements do not apply to EMT issuers that are already exempt under the legislation.

The standards guidelines are part of the implementation of the MiCA Regulation. Digital asset service providers must comply with the new standards by July 1, 2026.

review: The Real Risks for the Ethena Stablecoin Model (Not the One You Think)

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