The European Banking Authority (EBA) has unveiled a detailed set of technical standards and guidelines under the Markets in Crypto-Assets (MiCA) regulation, offering regulatory direction for asset-referenced tokens (ARTs) and e-money tokens (EMTs) across Europe.
This comprehensive package addresses six key areas, including stress testing programs, asset reserves, and recovery plans. Under MiCA, ARTs are backed by assets such as commodities, real estate, or a diversified basket of assets, while EMTs, similar to stablecoins, maintain a stable value by being pegged to fiat currencies and are used for payments.
The guidelines specify requirements for token issuers, emphasizing the need for adequate financial resources (own funds) to cover potential risks. They also establish criteria to determine if an issuer is at a higher risk, necessitating an increase in own fund reserves.
EBA’s final draft report outlines the process and timeline for issuers to adjust their own funds to 3% of the average reserve of assets classified as significant. Issuers must submit an implementation plan within 25 working days and achieve compliance within six months.
Moreover, the European regulator is setting minimum reserve percentages based on daily and weekly maturities and limiting the concentration of highly liquid financial instruments among issuers. One draft report specifies:
“The minimum amount of deposits with credit institutions to be held in the reserve of assets related to tokens that are not significant and are referenced to official currencies should be kept to 30% of the amount referenced, or to 60% if the token is significant, and not raised any higher.”
Tokens linked to assets other than official currencies, such as commodities or real estate, can also be considered highly liquid. The EBA sets limits on the quantity of these highly liquid financial instruments that a single issuer can offer.
Regarding recovery plans, the regulator is incorporating feedback from the consultation period, detailing requirements for communication and disclosure. It also clarifies that asset reserve requirements do not apply to EMT issuers already exempted by the legislation.
These standards and guidelines are part of the broader implementation of the MiCA regulation. Digital asset service providers must comply with the new standards by July 1, 2026.
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