Quantcast

European Banking Authority emphasizes application of MiCAR, priorities to supervise ART, EMT issuers

Web3/Crypto
Webp josemanuelcampa800x450
Jose Manuel Campa, Chair of the EBA | LinkedIn

The European Banking Authority (EBA) issued a statement for individuals interested in issuing, offering, or trading asset-referenced tokens (ARTs) and e-money tokens (EMTs), highlighting priorities for the consistent application of markets in crypto assets (MiCAR). The EBA made this statement on July 5.

The European Banking Authority is an independent EU Authority that works to ensure effective and consistent prudential regulation and supervision in the European banking sector, according to the EBA’s "About Us" page. The organization is dedicated to contributing to the stability and effectiveness of the European financial system.

According to MiCAR, a regime was created to allow for the regulation and supervision of crypto asset issuance and crypto asset service provision in the European Union. The EBA issued a statement focused on MiCAR on July 12. It discusses the guiding principles for financial institutions that may carry out ART/EMT activities and encourages financial institutions to complete a comprehensive legal assessment to ensure that the ART/EMT activities are legal and to determine what legal, regulatory, and supervisory conditions are required where the institution is located. The EBA also suggests conducting a robust assessment of how the ART/EMT activities might affect the organization’s risk management profile.

Get the Newsletter
Sign-up to receive weekly round up of news from Crypto Republique
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

The guiding principles include disclosure to potential acquirers and holders of ARTs and EMTs, fair treatment, having a well-defined business model, ensuring sound governance including effective risk management commensurate with the nature, scale, and complexity of the ART/EMT activities and the wider business model of the entity; creation of robust reserve, recovery, and redemption arrangements; communication of information to the competent authority of the intention to offer ARTs or EMTs to the public or seek admission to trading, according to the July 12 statement from the EBA.

More News

John Patrick Mullin, CEO of MANTRA, addressed the complexities of token distribution during his talk at Binance Blockchain Week.

Nov 10, 2024

Kendrick Nguyen, CEO of Republic, said that digitized financing could become "accessible to the true retail public," allowing consumers to invest in "real-world assets."

Nov 10, 2024

ADAN, a European blockchain and Web3 industry organization, has announced that the implementation of MiCA, Europe's blockchain regulation framework, has introduced "significant changes" to the cryptocurrency sector.

Nov 10, 2024

Clara Chappaz, the French Secretary of State for Artificial Intelligence and Digital Technology, said that the French AI ecosystem is leading Europe with some of the best developers attending the dotAI2024 conference.

Nov 10, 2024

Irina Heaver, a crypto lawyer at NeosLegal, said that banks have incurred over "$400 billion" in fines for compliance breaches and "caused the 2008 financial crisis," yet cryptocurrency is often labeled as a "scam."

Nov 9, 2024

Richard Teng, CEO of Binance, expressed optimism about the role of cryptocurrency in shaping the future financial services industry.

Nov 7, 2024