Regulation
MiCA crypto regulation takes shape according to the EBA
The implementation of the MiCA crypto regulation is progressing rapidly, as is the introduction of new standards and technical guidelines by the European Banking Authority (EBA).
The EBA recently published a comprehensive set of standards and technical guidelines aimed at clarifying regulation for token issuers, with a particular focus on asset-referenced tokens (ART) and electronic money tokens (EMT). in the entire Europe.
The MiCA regulation, adopted by the European Union, aims to create a coherent and secure legal framework for the issuance and use of crypto-assets.
This regulation aims to strengthen investor protection, ensure financial stability and promote technological innovation in the crypto-asset sector.
New guidelines for MiCA crypto regulation based on EBA guidelines
The new directives and technical standards of the ABE represent a fundamental step towards the effective implementation of MiCA.
These standards aim to ensure that ART and EMT issuers operate in compliance with European regulations, guaranteeing the transparency, security and integrity of the crypto-asset market.
Activity-linked tokens, or ARTs, are cryptoassets whose value is tied to one or more underlying assets, such as commodities or fiat currencies. The new EBA guidelines require ART issuers to maintain an adequate reserve of underlying assets to ensure the stability and value of the token.
In addition, issuers must provide investors with detailed and transparent information regarding the underlying assets, reserve policies and investor protection mechanisms.
The EBA also highlights the importance of strong governance for ART issuers. Companies must implement governance structures that ensure prudent management of resources, separation of activities and protection of investor rights.
Additionally, measures must be adopted to prevent conflicts of interest and ensure compliance with anti-money laundering (AML) and anti-terrorist financing (CFT) regulations.
Electronic money tokens, or EMT, are cryptoassets designed to function like digital currency, with value tied to a specific fiat currency.
The EBA Guidelines for EMTs require issuers to obtain a license to operate as electronic money institutions, in accordance with the European Directives on electronic money and payment services.
EMT issuers must ensure that funds raised from investors are protected and segregated from other business activities. They must also implement risk management systems to monitor and mitigate risks associated with issuance of EMT, including operational, liquidity and credit risks.
Transparency and investor protection
A central theme of the EBA’s new guidelines is transparency. Issuers of ART and EMT must provide investors with complete and accurate information regarding the characteristics of the tokens, associated risks and investors’ rights.
This includes the publication of periodic information on the reserves of the underlying assets, on reserve policies and on investor protection mechanisms.
In addition, the EBA requires issuers to adopt measures to protect investors’ funds in the event of insolvency or bankruptcy of the issuer. This may include creating separate accounts for investor funds and adopting insurance or guarantee mechanisms.
The implementation of the new EBA guidelines and technical standards represents an important step towards creating a safer and more regulated crypto-asset market in Europe.
With these measures, the EBA aims to ensure that ART and EMT issuers operate in compliance with European regulations, protecting investors and promoting financial stability.
As the crypto-asset sector continues to evolve, the Mica The EBA’s regulations and guidelines provide a clear and consistent framework for issuers, helping to create a safer and more transparent market environment.
This will not only protect investors but also encourage innovation and technological development in the bull and bear sector of cryptoassets.