The European Banking Authority (EBA) has unveiled a comprehensive set of technical standards and guidelines in accordance with the Markets in Crypto-Assets (MiCA) regulation, offering regulatory direction for asset-referenced tokens (ARTs) and e-money tokens (EMTs) throughout Europe.
This package addresses a range of topics, including stress testing programs, asset reserves, and recovery plans. ARTs, as defined by MiCA, are tokens supported by assets such as commodities, real estate, or a diverse mix of assets, while EMTs maintain a consistent value by being linked to fiat currencies and are used for transactions, similar to stablecoins.
The EBA has issued specific guidelines for token issuers, emphasizing the importance of having sufficient financial resources (own funds) to mitigate potential risks. It also establishes criteria to identify issuers facing higher risks, necessitating an increase in own fund reserves.
The final draft report from EBA outlines the process and timeline for issuers to adjust their own funds to 3% of the average reserve of significant assets. Issuers must submit an implementation plan within 25 working days and achieve compliance within six months.
Moreover, the European regulator is imposing minimum percentages for asset reserves based on daily and weekly maturities, as well as restricting issuers from concentrating on highly liquid financial instruments. The report notes that tokens tied to assets other than official currencies, like commodities or real estate, may also be considered highly liquid. EBA also limits the amount of highly liquid financial instruments that a single issuer can offer.
Regarding recovery plans, the regulator is integrating feedback from consultations to outline communication and disclosure requirements. A new provision clarifies that asset reserve obligations do not apply to EMT issuers already exempted by legislation.
These standard guidelines are part of the MiCA regulation implementation process. Providers of digital asset services must adhere to these new standards by July 1, 2026.
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