![[NEWS] European Banking Authority publishes package of technical standards and updated guidelines under MiCA](/_next/image?url=https%3A%2F%2Fimages.microcms-assets.io%2Fassets%2F7819a9cf917e4bcd862bfa2ff5f14d24%2Fe729b422f630450197e57a2dd9faf08d%2Fmica_2117549552.jpg&w=3840&q=75)
The European Banking Authority (EBA) published a package of technical standards and updated guidelines under the crypto asset market (MiCA) on the 13th.
The European Banking Authority (EBA) published a package of technical standards and updated guidelines under the crypto asset market (MiCA) on the 13th. The guidelines include comprehensive technical standards and guidelines for asset reference tokens (ART) and electronic money tokens (EMT).
The EBA regulated products covered six topics, including stress test programs, reserves, and recovery plans.
Adjusting the self-funding requirements and implementing stress test programs for asset reference token (ART) and electronic money token (EMT) issuers subject to such requirements.
ART is a token backed by assets such as commodities, real estate, and a basket of several different cryptocurrencies, and EMT is a stablecoin pegged to fiat currency.
These standards set out the criteria for the assessment of higher risk, the procedure for the competent authorities to determine the period deemed appropriate for issuers to increase their own capital to the higher own capital requirement, the measures to be taken to ensure timely compliance, and the minimum requirements for issuers in designing and implementing a stress test program.
The final draft of the Regulatory Technical Standards specified the procedure and time period for issuers to adjust their own capital to 3% of the asset reserve when issuing ART or EMT classified as significant. The period for submitting the implementation plan was changed to 25 business days. It also set the maximum period that the authorities can allow issuers to do so for six months.
The final draft of the RTS set out the liquidity requirements for the asset reserve. The draft Regulatory Technical Standards (RTS) set the minimum percentage of the asset reserve and also set the minimum amount of official currency deposits.
The draft RTS set out the highest quality liquid assets in the Liquidity Coverage Ratio (LCR) as financial instruments. At the same time, in the case of ARTs that refer to assets other than the official currency in order to explore the correlation between the liquid financial instruments and the reference assets, financial instruments that track the value of the assets referenced by the tokens or derivatives related thereto will be approved as eligible liquid financial instruments. Furthermore, the draft RTS sets out the concentration limits for liquid financial instruments by issuers.
The final draft RTS, which specifies the minimum content of liquidity management policies and procedures, envisages the minimum aspects of liquidity risk identification, measurement and management procedures, emergency response policies and risk mitigation tools, and liquidity stress testing.
The guidelines on recovery plans, which specify the form and content of recovery plans that issuers must prepare and maintain, take into account the feedback received during the consultation period and prescribe the content of communication and disclosure plans. In addition, new definitions have been added, and the provisions on specific requirements applicable to the asset reserve (recovery plan indicators and scenarios) have been amended to simplify and clarify the wording, introducing new criteria to clarify that they do not apply to issuers of EMTs that do not incur an obligation to hold an asset reserve pursuant to MiCA.