On Mar. 24, 2025, EU CMSN issued Reg 2025/415 specifying adjustment of own funds requirement and minimum features of stress testing programs of issuers of ARTs/EMTs.
And Reg 2025/419 specifying the procedure and timeframe for an issuer of ARTs or of EMTs to adjust the amount of its own funds; both in force on Apr. 13, 2025.
On Jun. 13, EBA issued package of standards, guidelines under MiCA.
EBA published a package of technical standards and guidelines under the Markets in crypto-assets regulation (MiCA Reg 2023/1114) covering prudential matters.
Namely own funds, liquidity requirements and recovery plans, following consultations.
The regulatory products are part of EBA's efforts to foster well-regulated market in EU.
RTS on Issuers' Own Funds Requirement, Stress Tests
Final draft regulatory technical standards (RTS) specifying adjustment of own funds requirement and minimum features of stress testing programs of issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs) subject to such requirements.
EBA/RTS/2024/08 specifies the criteria for the assessment of higher degree of risk.
Procedure for competent authorities to determine the period of time considered appropriate for issuers to increase the own funds amount to the higher own funds requirements and the measures to be taken to ensure the timely compliance thereof.
Minimum set of requirements to issuers for design/implementation of stress testing.
RTS on Procedure and Timeframe to Adjust Own Funds
Final draft RTS to specify the procedure and timeframe to adjust the own funds requirements for issuers of significant ARTs or EMTs subject to such requirements.
EBA/RTS/2024/09 contains technical standards for such an issuer to adjust the amount of its own funds to 3% of the average amount of the reserve of assets.
Considering feedback to consultation, the timeframe for the issuer to provide implementation plan to increase the own funds requirements is changed to 25 days.
Additionally, maximum amount of time that competent authority may grant to the issuer to comply with the plan has been adjusted upwards to a maximum of 6 months.
RTS on Liquidity Requirements of Reserve of Assets
The final draft RTS further specify the liquidity requirements of the reserve of assets.
EBA/RTS/2024/10 sets specific minimum percentages of reserve of assets according to daily and weekly maturities, minimum amount of deposits in each currency referenced.
Notes overall techniques of liquidity management to seek minimum creditworthiness, liquidity soundness and minimum diversification of bank deposits counterparties in the reserve of assets, and minimum overcollateralization re reserve and assets referenced.
RTS to Specify Highly Liquid Financial Instruments
Final draft RTS, EBA/RTS/2024/11, specify the highly liquid financial instruments with minimal market risk, credit risk and concentration risk under Article 38(5) of MiCA.
Set highest quality liquid assets in liquidity coverage ratio (LCR) as eligible highly liquid financial instruments, and financial instruments tracking value of the assets referenced by token or derivatives relating to them deemed eligible as highly liquid instruments.
RTS also set concentration limits of highly liquid financial instruments by issuer.
RTS on Liquidity Management Policy and Procedures
The final draft RTS, EBA/RTS/2024/12, on policies and procedures envisage procedures to identify, measure and manage liquidity risk, contingency policy, mitigation tools.
They also envisage minimum aspects of liquidity stress testing.
Guidelines on Recovery Plans
The guidelines, EBA/GL/2024/07, specify format and content of recovery plan that issuers need to develop and maintain, content of communication and disclosure plan.
Following the consultation, some targeted amendments are made to streamline the wording and provide further clarity, including new definitions and new paragraph.
To clarify that any provision regarding certain requirements applicable to the reserve of assets does not apply to issuers of EMTs that are not subject to hold a reserve of assets in accordance with MiCA.
Next Steps
All the final draft RTS are adopted by EBA and submitted to the European Commission.
The guidelines are final and await translation into the EU official languages, they shall apply from two months after publication of all the translations on the EBA website.
Dec. 13, 2024 Own Funds Requirement, Stress Tests
On Dec. 13, 2024, EU CMSN adopted final draft RTS (C(2024) 6908 final) specifying adjustment of own funds requirement and minimum features of stress testing programs of issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs).
Draft RTS establish the steps needed for competent authority to produce assessment of higher degree of risk and also provide for the issuer of asset-referenced tokens or, where applicable, e-money tokens to submit a plan to adjust its own funds.
RTS also include (maximum) timeframes which the competent authority may provide to issuer of asset-referenced tokens or, where applicable e-money tokens to implement plan to increase its own funds, having regard to materiality of higher degree of risk.
Furthermore, they establish criteria for the competent authority when making determination, referred to in Art 35(3) to produce assessment of higher degree of risk.
Dec. 16, 2024 Procedure and Timeframe to Adjust Own Funds
On Dec. 16, 2024, EU CMSN adopted RTS (C(2024)8741) specifying procedure and timeframe for issuer of ARTs or of e-money tokens to adjust the amount of own funds.
RTS establish process for NCA to notify relevant issuer of the timeframe to increase its own funds and for the relevant issuer to submit to the competent authority a detailed plan on how own funds will be adjusted to meet requirement in Article 45(5) of MICA.
RTS also provide provisions for the competent authority and relevant issuer to monitor the implementation of the plan to ensure a timely completion.
And they set the maximum timeframe that the competent authority may provide to the relevant issuer to implement the plan to increase its own funds, having regard to the potential impact on the issuer, its specificities, and risks to the financial stability.
Regulation in force on 20th day following publication in the Official Journal of the EU.
Mar. 2025 Official Journal
On Mar. 24, 2025, EU CMSN issued Reg 2025/415 specifying adjustment of own funds requirement and minimum features of stress testing programs of issuers of ARTs/EMTs.
And Reg 2025/419 specifying the procedure and timeframe for an issuer of ARTs or of EMTs to adjust the amount of its own funds; both in force on Apr. 13, 2025.
