EBA Guidelines on ARTs Governance


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).
  • On same day, EBA issued consultation on remuneration policy re MiCA, see #188820.
  • And EBA also issued a consultation re approval of ARTs white papers, see #188814.
  • Background
  • 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 the Final 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.

Regulators EU EBA
Entity Types B/D; Bank; CNSM; IA; Inv Co; MSB
Reference GCT 10/25/2024; GCT 10/2/2024; Trsl EBA/GL/2024/06, 9/20/2024; Rp EBA/GL/2024/06, PR, 6/6/2024; CP EBA/CP/2023/23, PR, 10/20/2023; Fintech; Citation: MiCA Reg 2023/1114;
Functions BCS; Compliance; C-Suite; Cyber; Financial; Fraud; Legal; Market Conduct; Operations; Outsourcing; Registration/Licensing; Reporting; Resolution; Risk; Technology; Treasury
Countries European Union
Category
State
Products Banking; Cryptocurrency; Custody; Fund Mgt; Issuance/IPO; Payments; Securities
Regions EMEA
Rule Type Final
Rule Date 10/20/2023
Effective Date 11/20/2024
Rule Id 188831
Linked to Rule :188820
Reg. Last Update 10/25/2024
Report Section EU

Last substantive update on 10/29/2024