Regulation
The EBA publishes regulatory governance products in the context of the regulation of crypto-asset markets.
THE ABE has worked to shape the regulatory landscape for crypto assets by publishing three regulatory products on governance, conflicts of interest and remuneration under MiCAR.
According to the press release, these products are part of the European Banking Authority’s (EBA) ongoing efforts to foster a transparent, secure and well-regulated crypto-asset market.
All EBA regulatory products on governance and remuneration
Guidelines on the minimum content of governance arrangements for ART issuers which further specify the different governance provisions of MiCAR, taking into account the principle of proportionality. Furthermore, these guidelines clarify the tasks, responsibilities and organization of the management body, as well as the organizational arrangements of the issuers, including the proper management of risks across the three lines of defense.
Final draft regulatory technical standards (RTS) on the minimum content of governance provisions regarding remuneration policy. The RTS are applicable to issuers of asset-referenced tokens (ARTs) and electronic money institutions issuing significant electronic money tokens (EMTs) and, where Member States require the application of Article 45(1), of MiCAR, to issuers of non-significant electronic money tokens. EMT.
To ensure that remuneration policies promote sound and effective issuer risk management, do not create incentives to reduce risk standards and ensure cross-industry consistency, this final draft RTS defines a framework similar to the remuneration framework investment firms which aims to achieve the same regulatory objectives.
Final Draft RTS on Conflicts of Interest for ART Issuers which specifies requirements for Conflict of Interest (CoI) policies and procedures. ART issuers must implement and maintain effective policies and procedures to identify, prevent, manage and disclose conflicts of interest. For CoIs to be managed effectively, policies and procedures must ensure that sufficient resources are available for their management.
The final draft RTS emphasizes that ART issuers must pay particular attention to conflicts of interest that could arise in relation to the pool of assets. Where the ART issuer is a member of a group, the policies and procedures must also take into account any circumstances that may give rise to a CoI due to the structure and business activities of other entities within the group.
Legal basis and next steps
The EBA Guidelines on the minimum content of governance arrangements for ART issuers have been developed in accordance with Article 34(13) of MiCAR which mandates the EBA in close cooperation with the Authority European Financial Markets Authority (ESMA) and the European Central Bank (ECB). ) to issue guidelines specifying the minimum content of the governance arrangements for ART issuers, particularly with regard to risk monitoring tools; business continuity plans; the internal control mechanism; and audits, including minimum documentation to be used in audits.
The RTS on the minimum content of the governance arrangements relating to the remuneration policy have been developed in accordance with Article 45(7) of MiCAR which mandates the EBA, in close cooperation with ESMA, to develop RTS specifying key governance processes regarding adoption and maintenance. of the remuneration policy and the main elements of the policy that should be adopted by the issuer as part of the remuneration policy.
The RTS on conflicts of interest for ART issuers has been developed in accordance with Article 32 (5) of MiCAR which mandates the EBA to specify the requirements relating to policies and procedures relating to conflicts of interest interests for issuers of asset-referenced tokens as well as details and methodology for the content of the disclosure. It has been developed in close cooperation with the European Securities and Markets Authority (ESMA), which is mandated to develop a similar RTS for crypto-asset service providers (CASP) under Article 72(5). from MiCAR.