The European Banking Authority a comprehensive decision outlining the procedural aspects regarding the classification of asset-referenced tokens (ARTs) and e-money tokens (EMTs) as ‘significant,’ and the subsequent transfer of supervisory powers between the EBA and national competent authorities on Tuesday 22 October 2024. This move comes as part of the implementation of the markets in crypto-assets regulation (Mica), which has introduced a new regulatory framework for ART and EMT issuers across the European Union.
The EBA’s decision plays a critical role in detailing the processes and obligations that issuers of significant ARTs (s-ARTs) and significant EMTs (s-EMTs) must follow, and how supervisory duties will be transferred from national competent authorities to the EBA. This is seen as a necessary step to ensure harmonisation and consistency in the supervision of these financial instruments across member states, stated the pan-European regulator.
Key procedural clarifications
In its decision, the EBA introduced several procedural steps aimed at streamlining the assessment of significance and the transition of supervisory responsibilities. These included:
- Harmonised reporting calendar: The EBA introduced a uniform reporting schedule for national competent authorities, setting clear reference periods and remittance deadlines. This measure aimed to create consistency in how data are reported across different jurisdictions, ensuring timely and standardised submissions from ART and EMT issuers.
- Reporting obligations for issuers: The EBA clarified the specific reporting obligations for issuers of s-ARTs and s-EMTs. This includes the data necessary for the establishment of supervisory colleges, which will play a crucial role in the oversight of these tokens.
- Consultation procedures: The decision outlined the procedural arrangements and timelines for consultation with relevant parties. When the EBA issues draft or final decisions regarding the significance assessment of ARTs and EMTs, notifications will be sent to the issuer’s home national competent authority, the European Central Bank and the relevant national central bank, among others. This step ensures that all key stakeholders are informed and can contribute to the decision-making process.
- Transfer of supervisory competence: The EBA also established the procedural steps required to support the smooth transition of supervisory powers between the EBA and national authorities. This will be critical when issuers of ARTs and EMTs are classified as significant, requiring EBA oversight. The procedure provides for the required information to ensure continuity in supervision during this transition phase.
- Templates for notifications: To facilitate the process, the EBA provided various templates. These include templates for national competent authorities to notify voluntary classification requests from issuers of ARTs and EMTs, as well as templates for written observations from the issuer, their home country’s regulator, the ECB and relevant central banks. This step-by-step template system ensures all required information is submitted efficiently, reducing the potential for delays.
The EBA’s decision aligns with Mica’s broader objectives of creating a robust supervisory framework for crypto-assets, ensuring that both ARTs and EMTs are properly regulated and supervised at the European level. The new system established under Mica places s-ARTs and s-EMTs under more rigorous oversight.
The decision on procedure for significance assessment Mica is available .