The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have recently published a joint consultation paper on two draft guidelines relating to the assessment and regulation of crypto-assets. These guidelines aim to provide clear and consistent criteria for evaluating the suitability of individuals serving on the management team, shareholders, and individuals with significant stakes in companies that issue asset-referenced tokens (ARTs) and provide crypto-asset services (CASPs).
Key Highlights
- The draft guidelines cover the evaluation of the fitness and suitability of management team members, shareholders, and individuals with significant holdings in ART and CASP entities.
- Standardized criteria are established for assessing their knowledge, skills, experience, integrity, and commitment to their roles.
- The guidelines aim to reduce inconsistencies in rule application and potential regulatory arbitrage.
- They are issued in accordance with the upcoming Markets in Crypto-Assets Regulation (MiCA) in the European Union.
- The consultation period for these guidelines remains open until January 22, 2024, to allow for stakeholder feedback.
“The purpose of these draft guidelines is to ensure transparent and reliable assessment criteria for individuals and entities involved in the issuance and provision of crypto-assets. By establishing uniform standards, we aim to promote confidence and enhance stability in this rapidly evolving industry.” – European Banking Authority (EBA) and European Securities and Markets Authority (ESMA)
These guidelines are crucial in promoting transparency, reliability, and stability within the crypto-asset industry. By establishing consistent criteria for assessing the suitability of management team members, shareholders, and individuals with significant stakes in ART and CASP entities, the EBA and ESMA strive to minimize the potential for rule exploitation and ensure a level playing field.
It is worth noting that the draft guidelines align with the forthcoming Markets in Crypto-Assets Regulation (MiCA), which is set to introduce a comprehensive regulatory framework for crypto-assets in the European Union. The MiCA regulation is expected to come into force in 2024, providing a robust and standardized framework for the crypto-asset industry.
The EBA and ESMA are inviting stakeholders to provide feedback on the draft guidelines during the consultation period. This collaborative approach ensures that all perspectives are considered before finalizing the guidelines.
“The input and feedback received from stakeholders will play a vital role in shaping the final versions of these guidelines. By involving the industry and regulatory stakeholders, we can create a regulatory framework that is comprehensive, effective, and well-aligned with market needs.” – European Banking Authority (EBA) and European Securities and Markets Authority (ESMA)
This inclusive and transparent process demonstrates the commitment of the EBA and ESMA to address the unique challenges of the crypto-asset industry while promoting responsible and effective regulation.
Once the consultation period concludes, the EBA and ESMA will carefully review all comments and input received before finalizing the guidelines. The final versions of these guidelines are expected to be released in conjunction with the implementation of the Markets in Crypto Assets (MiCA) regulation.
