The Guidelines specify the "content of the redemption plan to be developed by issuers of ARTs and EMTs in going concern, including the liquidation strategies of the reserve of assets, the mapping of critical activities, the content of the redemption claims, the main steps of the redemption process, and the elements that may lead to the trigger of the plan by the competent authority."

It outlines the following:

• The Bank of Italy is the competent authority for prudential supervision of electronic money token (EMT) and asset-referenced token (ART) issuers and cryptoasset service providers (CASPs). With respect to CASPs, the Bank of Italy is also the supervisory authority in respect of anti-money laundering/counter-terrorism financing (AML/CTF).
• The Italian financial market authority, CONSOB (Commissione Nazionale per le Società e la Borsa), is  the competent authority for overseeing cryptoassets other than EMTs and ARTs and for transparency, fair conduct, orderly trading and protection of customers in relation to ARTs and cryptoasset services. It also has supervisory powers in relation to the prevention and prohibition of market abuse involving cryptoassets.
• A transitional regime from the current domestic virtual asset service provider

VASPs currently operating in Italy and enrolled in the Organismo per la gestione degli Elenchi degli Agenti in attività finanziaria e dei Mediatori creditizi (OAM) register should take into account the transitional regime provided by the MiCAR Italian Decree and take the necessary steps to apply for a CASP licence (either in Italy or in another EU member state) by 30 June 2025.

See our article for more on this development.

The paper explores the relationship between banks and stablecoins and their issuers, focusing on the mechanical effects on banks’ capital and liquidity ratios when issuing stablecoins or collecting deposits from stablecoin issuers. 

The Guidelines should ensure that competent authorities have "sufficient comparable information to supervise compliance of issuers with MiCA requirements and provide the EBA with the information necessary to conduct the significance assessment under MiCA."

Deadline for comments is 15 October 2024.

The final report includes the following draft technical standards: 

1. sustainability indicators for cryptoasset consensus mechanisms; 
2. business continuity measures for cryptoasset service providers (CASPs); 
3. trade transparency; 
4. content and format of orderbooks and record-keeping by CASPs; 
5. machine readability of white papers and the register of white papers; and 
6. public disclosure of inside information. 

The package of EBA regulatory products comprises:

• Final Report on RTS on use of ARTs and EMTs as a means of exchange under MiCA
• Final Report on draft ITS on reporting on asset-referenced tokens under MiCA
• Final Report on Guidelines on liquidity stress testing under MiCA
• Final Report on RTS on colleges under MiCA

The package comprises:

• Final report on Guidelines on recovery plans under MiCA
• Final report on draft RTS to specify the minimum content of liquidity management policy
• Final report on draft RTS to specify the highly liquid financial instruments in the reserve of assets
• Final report on draft RTS further specifying the liquidity requirements
• Final report on draft RTS on the procedure and timeframe to adjust own funds
• Final report on draft RTS on additional own funds requirements and stress testing

In the consultation package, ESMA is seeking input on four sets of proposed rules and guidelines, covering:

• Detection and reporting of suspected market abuse in cryptoassets (RTS).
• Policies and procedures, including the rights of clients, for cryptoasset transfer services (Guidelines).
• Suitability requirements for certain cryptoasset services and format of the periodic statement for portfolio management (Guidelines).
• ICT operational resilience for certain entities under MiCA (Guidelines).

Deadline for comments is 25 June 2024.

ESMA will publish a final report based on the feedback received and will submit the draft technical standards to the European Commission for endorsement by 30 December 2024 at the latest.