The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have jointly published a consultation paper consisting of two drafts. These drafts, shared on October 20, assess the suitability of members of the governing bodies and major shareholders or members with stakes in asset-referenced tokens (ART) and crypto-asset service providers (CASP) for these institutions.
What is Covered in the Draft Contents?
Proposed common guidelines were presented to evaluate the suitability of shareholders or members holding qualified shares directly or indirectly in asset-referenced token or crypto-asset service provider companies, and to assess their compliance with regulatory authorities.
These guidelines, prepared by analysts from the European Banking Authority and the European Securities and Markets Authority, cover many criteria for granting companies the authority to issue or potential share acquisitions in this field.
In addition to all this, the guidelines for assessing the suitability of members of the governing bodies in companies providing crypto-asset services, ART and CASP, addressed the skills of these individuals in terms of their knowledge, expertise, honesty, and commitment to fulfilling responsibilities in the sector. Standardized criteria for evaluating these skills were shared with the public.
European Union and the Crypto Sector
The rules included in the two different guidelines aim to protect the integrity of the cryptocurrency market and related services, create a trust environment in the products offered to investors, and minimize potential rule application inconsistencies and arbitrage potential. The consultation period for these criteria presented to the public will remain open until January 22, 2024.
The banking regulatory authority of the European Union, which has been carefully examining the cryptocurrency market in recent times and continues to share future regulations related to this sector with the public, encourages stablecoin issuers to voluntarily comply with certain guiding principles regarding risk management and consumer protection.
The European Banking Authority shared the first set of measures aimed at clarifying the requirements of the Crypto Asset Markets Regulation, which will come into effect on June 30, 2024, with the public on July 12.
