On Oct. 20, EBA began consultation on ART internal governance guide.
EBA issued consultation on guidelines on internal governance arrangements for issuers of asset referenced tokens (ARTs) under Markets in crypto-assets regulation (MiCA).
Draft guidelines developed in cooperation with EU ESMA and ECB in accordance with article 34(13) MiCA Reg 2023/1114 re minimum content of governance arrangements.
Including monitoring tools re operational risk, internal control mechanism for risk management, business continuity policy and plans on ICT systems, and on audits.
Proposals
Draft Guidelines specify governance provisions that ART issuers should comply with, taking into account proportionality principle, aim to ensure sound risk management.
Covering operational risks of ART issuers, including fraud, cyber and compliance risks.
The provisions of guidelines also aim to adequately protect consumers and investors.
Specify a number of governance provisions laid down in MiCA, including the tasks and responsibilities of the management body, and the organization of issuers of ARTs.
Also provide details on how issuers should identify sources of operational risk and minimize them through development of appropriate systems, controls, and procedures.
Specify arrangements to be put in place when relying on third party entities for operating the reserve of assets, for investment and custody of the reserve assets.
And where applicable, the distribution of the asset-referenced tokens to the public.
The draft guidelines also detail the establishment of business continuity plans.
Effectiveness
The closing date for receipt of comments on the draft guidelines is Jan. 22, 2024.
EBA will hold a virtual public hearing on them on Jan. 11, 2024, registration is open.
All the consultations issued on Oct. 20, form a second batch of MiCA policy products.
EBA expects to publish a third batch in November 2023.
Jun. 2024 Final Report
On Jun. 6, 2024, EU EBA published theFinal report on guidelines on the minimum content of the governance arrangements for issuers of asset-referenced tokens (ARTs).
Guidelines apply from 3 months after publishing on EBA site in EU official languages.
Sep. 20, 2024 Translations Published
On Sep. 20, 2024, EU EBA published translations of the Guidelines on the minimum content of the governance arrangements for issuers of asset-referenced tokens (ARTs).
Competent authorities must notify EBA as to whether they comply with the guidelines or intend to comply, or otherwise with reasons for non-compliance by Nov. 20, 2024.
In the absence of any notification by this date, authorities considered non-compliant.
The guidelines will apply from Dec. 20, 2024.
Oct. 2, 2024 Guidelines Compliance Table
On Oct. 2, 2024, EU EBA issued guidelines compliance table re Guidelines on minimum content of the governance arrangements for issuers of asset-referenced tokens (ARTs).
Table was updated on Oct. 1, 2024, to date only CRO CB has confirmed compliance.
ECB confirmed guidelines do not apply to it as not competent authority under MiCAR.
Competent authorities must notify compliance or non-compliance by Nov. 20, 2024.
Oct. 25, 2024 Compliance Table Update
On Oct. 25, 2024, EU EBA updated guidelines compliance table, data to Oct. 24, 2024.
MLT FSA informed EBA it intends to comply by the date a relevant institutions exists in the jurisdiction, intends to apply the EBA Guidelines by means of a MLT FSA rulebook.
ICL CB intends to comply when necessary legislative/regulatory proceedings complete.