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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’.

January 2025 European Commission / European Securities and Markets Authority (ESMA)

The European Securities and Markets Authority (ESMA) and the European Commission published guidance on non-MiCA compliant asset-referenced tokens (ARTs) and electronic money tokens (EMTs).

The statement provides guidance on how and under which timeline cryptoasset service providers (CASPs) are expected to comply with the requirements of Titles III and IV of MiCA, as clarified in the European Commission Q&A. In particular, National Competent Authorities (NCAs) are expected to ensure compliance by CASPs regarding non-compliant ARTs or EMTs as soon as possible, and no later than the end of Q1 2025. With the statement ESMA aims to facilitate coordinated actions at the national level and avoid potential disruptions. 

The European Commission has also published a Q&A, providing guidance on the obligations contained in titles III and IV of MiCA and how these obligations should apply to CASPs. 

The Q&A clarifies that certain cryptoasset services may constitute an offer to the public or an admission to trading in the EU and should therefore comply with titles III and IV of MiCA. 

December 2024 European Banking Authority

The European Banking Authority (EBA) published its final Guidelines on reporting requirements under the Markets in Crypto-assets Regulation (MiCA) to ensure that Competent Authorities receive 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.

The guidelines are addressed to competent authorities, issuers of ARTs and issuers of EMTs. They specify common templates and instructions for issuers to provide competent authorities and the EBA with the necessary information to cover identified reporting data gaps. The guidelines also include common templates and instructions that issuers should use to collect the data they need from relevant CASPs, contained in annexes in section 4 of the report:

The EBA also published a visual explainer providing guidance on which templates should be submitted by the different types of issuers. The EBA states that changes to the draft guidelines were made in the light of the consultation responses received. The guidelines will apply two months after publication on the EBA website of the translations in the EU official languages.

December 2024 European Commission

On 13 December 2024, the European Commission adopted a Delegated Regulation containing regulatory technical standards (RTS) specifying the adjustment of own funds requirement and minimum features of stress testing programmes of issuers of asset-referenced tokens or of e-money tokens under the EU Markets in Cryptoasset Regulation (MiCA).

The Council of the EU and the European Parliament will now scrutinise the Delegated Regulation. If neither objects, the Regulation will be published in the Official Journal of the EU and enter into force 20 days after publication.

On 16 December, the European Commission adopted the following Delegated Regulations supplementing MiCA:

  • A Commission Delegated Regulation laying down RTS specifying the data necessary for the classification of cryptoasset white papers and the practical arrangements to ensure that such data is machine-readable, together with an Annex;
  • A Commission Delegated Regulation laying down RTS specifying the minimum content of the governance arrangements on the remuneration policy of issuers of significant asset-referenced or e-money tokens; and
  • A Commission Delegated Regulation laying down RTS specifying the procedure and timeframe for an issuer of asset-referenced tokens (ARTs) or of e-money tokens (EMTs) to adjust the amount of its own funds.

The next step is for the Delegated Regulations to be published in the Official Journal of the EU. They will come into force 20 days after publication.

December 2024 European Banking Authority / European Insurance and Occupational Pensions Authority (EIOPA) / European Securities and Markets Authority (ESMA)

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority - the ESAs) published joint Guidelines intended to facilitate consistency in the regulatory classification of cryptoassets under MiCA. 

The Guidelines include a standardised test to promote a common approach to classification as well as templates market participants should use when communicating to supervisors the regulatory classification of a cryptoasset. 

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.

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