The European Banking Authority (EBA) has published a consultation paper on draft regulatory technical standards (RTS) for calculating and aggregating crypto-asset exposures. The announcement was made in a press release on January 8.
According to the EBA, the draft RTS under CRR 3 aims to establish prudential requirements for crypto-asset exposures. These standards outline capital requirements for electronic money tokens (EMTs), asset-referenced tokens (ARTs), and unbacked crypto-assets like Bitcoin, aligning with Basel guidelines. The RTS addresses credit risk, counterparty credit risk (CCR), market risk (MR), and credit valuation adjustment (CVA), ensuring institutions effectively manage these exposures.
Key provisions include rules for netting, position aggregation, hedge recognition criteria, and formulas for calculating exposure values. Furthermore, all fair-valued crypto assets within the scope of MiCAR must meet prudent valuation standards.
According to the Autorité des Marchés Financiers (AMF), MiCA regulation mandates that crypto-asset service providers (CASPs) obtain authorization before offering services. They can do so by getting approval from national authorities or notifying them if they are already authorized under specific statutes. CASPs demonstrating prior compliance with national laws can continue operations until July 1, 2026, while awaiting MiCA authorization. The regulation imposes obligations on CASPs including incorporation requirements, governance standards, client asset protection measures, and complaints handling procedures. CASPs must also adhere to prudential standards and maintain business continuity plans while complying with anti-money laundering and cybersecurity regulations.
The EBA is an independent EU agency responsible for ensuring effective and consistent regulation and supervision in the European banking sector. Its primary mission is to enhance the stability and integrity of the EU financial system through transparent and fair regulation. The EBA contributes to the creation of harmonized prudential rules for financial institutions and promotes convergence in supervisory practices. It also conducts risk assessments, oversees digital and operational resilience, and works to prevent financial crime. Additionally, it provides advice to EU institutions and resolves cross-border financial disputes.
