The European Banking Authority (EBA) has recently unveiled an extensive set of technical standards and guidelines in accordance with the Markets in Crypto-Assets (MiCA) regulation, aimed at offering regulatory direction for asset-referenced tokens (ARTs) and e-money tokens (EMTs) throughout Europe.
This comprehensive package addresses a variety of topics, ranging from stress testing programs and asset reserves to recovery plans. Under MiCA, ARTs are tokens that are supported by assets such as commodities, real estate, or a mix of various assets, while EMTs maintain a stable value by being tied to fiat currencies and utilized for transactions, much like a stablecoin.
The EBA specifically lays out guidelines for token issuers, emphasizing the importance of having sufficient financial resources (own funds) to mitigate potential risks. It also establishes criteria for identifying issuers facing a higher risk level, which would necessitate an increase in own fund reserves.
The EBA’s final draft report outlines the process and timeline for issuers to adjust their own funds to 3% of the average reserve of assets classified as significant. Issuers must submit their implementation plan within 25 working days, with compliance required within a maximum of six months.
Furthermore, the European regulator is instituting minimum percentages for asset reserves based on daily and weekly maturities, as well as restricting issuers’ concentration of highly liquid financial instruments. The EBA also places limits on the amount of these highly liquid financial instruments that a single issuer can offer.
Regarding recovery plans, the regulator is incorporating feedback from the consultation period to define communication and disclosure requirements. It includes a new provision to clarify that asset reserve requirements do not apply to EMT issuers already exempted by existing legislation.
These standard guidelines are a crucial part of the MiCA regulation implementation. Digital asset service providers are mandated to adhere to these new standards by July 1, 2026.