E-Money Regulations

E-money is defined in the 2EMD as being a store of monetary value stored via electronic or magnetic means. E-money is represented by a claim on e-money issuer, which is issued on the receipt of funds, for the purpose of making payment transactions. For e-money, to fall within the category, it must be accepted by a natural or legal person other than the e-money issuer itself. E-Money Regulations aim to standardise rules on digital transactions across all member states, and ensure safe services as well as equal competition. Some stablecoins may fall under the E-money regulations – when they are backed by a fiat currency and share similar characteristics to e-money. Nevertheless, e-money regulations have not been designed to address the specificities of stablecoins and thus the associated risks, therefore they are additionally regulated by the Markets in Crypto Assets regulation (MiCA) under the category of ‘e-money tokens’.

October 2024 European Banking Authority

The European Banking Authority (EBA) published its final Guidelines on the orderly redemption of token holders in case of crisis of the issuer. The Guidelines, which are addressed to competent authorities designated under the Markets in Crypto-Assets Regulation (MiCA), cover issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs).

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."

September 2024 Government of Italy

On 13 September 2024, the Italian Legislative Decree No. 129 of 5 September was published in the Official Gazette (in Italian only). The Decree implements Regulation (EU) 2023/1114 on markets in cryptoassets (MiCA).

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.

July 2024 European Central Bank

The European Central Bank published Occasional Paper 'Toss a stablecoin to your banker - Stablecoins’ impact on banks’ balance sheets and prudential ratios'.

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. 

July 2024 European Banking Authority

The European Banking Authority (EBA) launched a consultation on draft Guidelines on reporting requirements to assist competent authorities and the EBA in performing their duties under the Markets in Crypto-assets Regulation (MiCA).

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.

July 2024 European Securities and Markets Authority (ESMA)

The European Securities and Markets Authority (ESMA) published the second Final Report under the Markets in Crypto-Assets Regulation (MiCA) covering eight draft technical standards that aim to provide "more transparency for retail investors, clarity for providers on the technical aspects of disclosure and record-keeping requirements, and data standards to facilitate supervision by National Competent Authorities (NCAs)." 

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. 
June 2024 European Banking Authority

The European Banking Authority (EBA) published a package of technical standards and guidelines under MiCA on the topics of reporting, liquidity stress testing and supervisory colleges. This package completes the delivery of EBA technical standards under MiCA. 

The package of EBA regulatory products comprises:

March 2024 European Securities and Markets Authority (ESMA)

The European Securities and Markets Authority (ESMA) published its third consultation package under the Markets in Crypto-Assets Regulation (MiCA).

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.

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