Streamlining applications for Asset-Referenced Tokens offerings and trading listings.

The European Banking Authority (EBA) has published three sets of final draft Regulatory Technical Standards (RTS) and one set of final draft Implementing Technical Standards (ITS) related to ARTs. These standards provide guidelines on the assessment of qualifying holdings in ART issuers and outline the procedure for approving whitepapers for ARTs issued by credit institutions under MiCAR. The Markets in Crypto-Assets Regulation (MiCAR), first published in June 2023, aims to ensure safe +and regulated access to the EU market for crypto-assets.

The EBA report examines two technical standards mandated by MiCAR (Regulation (EU) 2023/1114). These standards are designed to streamline and harmonise the process for companies seeking authorisation to offer or trade ARTs within the European Union.

To ensure consistent supervisory practices across EU member states, MiCAR requires the EBA to develop two sets of technical standards:

1. Regulatory Technical Standards (RTS): These define the specific information that must be included in an application for authorisation to offer or trade ARTs (RTS information for authorisation).
2. Implementing Technical Standards (ITS): These establish standardised forms, templates and procedures for presenting application information to ensure uniformity across the EU (ITS information for authorisation).

The RTS information for authorisation was developed by the EBA in collaboration with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), as required by Article 18(6) of MiCAR. The ITS information for authorisation was developed in cooperation with ESMA, as outlined in Article 18(7) of MiCAR. Both sets of information are presented in a single consultation paper due to their interconnected nature.

RTS information for authorisation

The RTS outlines the specific details required in an authorisation application, going beyond the general requirements in MiCAR Article 18(2). The draft RTS follows the structure typically used for licensing regulatory products and covers:

1. Company Identification
2. Programme of operations: This includes details on issuance, redemption, the business model, risk assessment and financial forecasts.
3. Internal governance and structure: This includes oversight of critical functions and compliance with the Digital Operational Resilience Act (DORA) requirements.
4. Liquidity management and redemption rights
5. Suitability of management
6. Shareholder reputation

The information required by the RTS complements the details provided in the mandatory white paper submitted alongside the application. Competent authorities also retain the right to request additional information beyond the outlined requirements.

ITS on Information for Authorisation

The ITS focuses on standardised procedures and formats for submitting an application. It outlines uniform methods for submission, clarifies the steps required to determine a complete application, and provides guidance on how to address incomplete submissions. The ITS supports the RTS by concentrating on the application submission process itself.

By establishing these standardised procedures and formats, the ITS creates a clear and efficient process for companies seeking authorisation to offer or trade ARTs within the EU.

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