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On October 20, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published a consultation paper containing two drafts. These drafts outline the criteria for assessing the suitability of management body members and shareholders or members holding qualifying stakes in issuers of asset-referenced tokens (ARTs) and crypto asset service providers (CASPs).
The proposed joint guidelines for evaluating the suitability of shareholders or members, whether they have a direct or indirect stake, in ART or CASP issuers provide regulatory authorities with a unified approach for assessing their suitability. This includes the authorization process for ART and CASP issuance and the prudential assessments for potential acquisitions.
The guidelines also establish standardized criteria for assessing the suitability of management body members in ART and CASP issuer firms. These criteria evaluate their knowledge, expertise, integrity, and their ability to dedicate sufficient time to fulfill their responsibilities.
These guidelines aim to uphold the integrity and trustworthiness of the cryptocurrency market and its associated services, while minimizing the potential for discrepancies in rule application and arbitrage. The consultation period for these guidelines will remain open until January 22, 2024.
In anticipation of forthcoming regulations, the European Union’s banking regulator has encouraged stablecoin issuers to voluntarily adhere to specific “guiding principles” related to risk management and consumer protection. The EBA introduced its initial set of measures for public input on July 12, with the aim of clarifying the requirements of the Markets in Crypto-Assets regulation, which is scheduled to be enforced on June 30, 2024.
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