20 October 2023
The European Banking Authority (EBA) today launched a public consultation on its new Guidelines on internal governance arrangements for issuers of asset referenced tokens (ARTs) under the Market in crypto-assets Regulation (MiCAR). These Guidelines specify the governance provisions that these issuers should comply with, taking into account the proportionality principle. This governance framework aims at ensuring a sound management of all risks associated with the activities of issuers of ARTs, such as operational risks, including fraud, cyber, and compliance risks. In addition, the provisions aim to adequately protect consumers and investors. The consultation runs until 22 January 2024.
In line with the proportionality principle and to take account of the specificities of issuers of ARTs, this consultation paper specifies a number of governance provisions laid down in the MiCAR, including the tasks, responsibilities of the management body as well as the organisation of issuers of ARTs. The aim of these provisions is to ensure the sound management of risks across all lines of defence to allow the supervision of issuers of ARTs.
In addition, the consultation paper provides details on how issuers of ARTs should identify sources of operational risk and minimise those risks through the development of appropriate systems, controls, and procedures. It also specifies the arrangements to be put in place when relying on third-party entities for operating the reserve of assets, for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public. Finally, the draft Guidelines provide details on the establishment of business continuity plans.
This publication together with the other consultations papers published today form a second batch of MiCAR policy products. The EBA expects to publish a third batch in November 2023.
Consultation process
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 22 January 2024.
The EBA will hold a virtual public hearing on the consultation paper on 11 January 2024 from 09:30 to 13:00 Paris time. The EBA invites interested stakeholders to register using the link by 9 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered for the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
Legal basis and next steps
These draft Guidelines have been developed in cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), in accordance with Article 34(13) of Regulation (EU) 2023/1114 which requires to specify the minimum content of governance arrangements for issuers of ARTs, in particular with regard to:
- the monitoring tools regarding operational risk;
- the internal control mechanism for risk management, including with regard to the reliance on third-party entities for operating the reserve of assets, and for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public;
- the business continuity policy and plans on ICT systems and procedures;
- the audits, including the minimum documentation to be used in the audit.
When issuing these Guidelines, the EBA has taken into account the provisions on governance requirements in other Union legislative acts on financial services, including Directive 2014/65/EU.
The EBA Guidelines will apply to competent authorities across the EU, as well as to issuers of ARTs.
Deadline: 22/01/2024