Markets in Crypto-assets

The Markets in Crypto-assets Regulation (Regulation (EU) No 2023/1114), also known as MiCAR, regulates crypto-asset issuance and service provision in the European Union (EU). MiCAR encompasses activities such as offering asset-referenced tokens (ARTs) and electronic money tokens (EMTs) to the public or seeking admission for trading, as well as issuing such tokens. 

Under MiCAR, the EBA is entrusted with the task of supervising significant ARTs and EMTs, as determined by the EBA based on the criteria specified in MiCAR. 

MiCAR came into force on 29 June 2023, with the provisions pertaining to ARTs and EMTs applicable from 30 June 2024. To ensure a smooth transition and convergence towards the application of these provisions, the EBA published, at its own initiative, a statement, addressed to financial institutions and competent authorities.  

Policy mandates: timeline 

The EBA is responsible for developing 17 technical standards and guidelines to further specify the requirements for ARTs and EMTs. It’s also mandated to produce two regulatory products jointly with the European Securities and Markets Authority (ESMA) and one jointly with ESMA and the European Insurance and Occupational Pensions Authority (EIOPA). 

The first set of consultation papers, focusing on ART authorisations, qualifying holdings, and complaints handling, were published on 12 July 2023. The second batch, was published on 20 October 2023 and covers mandates on the approval of ART white papers (for tokens issued by credit institutions) and suitability of members of the management body of ART issuers and CASPs, is scheduled to be published in Q3 2023. The remaining EBA consultation papers including prudential mandates will be made available before the end of 2023.

Supervision set-up and its other tasks 

In parallel with the policy development, in 2023 and 2024, the EBA will be undertaking actions to prepare for its supervision tasks related to significant ARTs and EMTs and other tasks.

The EBA continues its work of monitoring crypto-assets to assess opportunities and risks associated with emerging market developments. The EBA maintains close collaboration with the European Commission, ESMA, EIOPA and the European Systemic Risk Board (ESRB), and actively participates in the work of international standard-setting bodies, such as the Basel Committee on Banking Supervision and Financial Stability Board.  

Consumers are reminded of the warnings available from the consumer section on the EBA’s website.