The European Banking Authority has launched three rounds of consultations on the draft regulatory technical standards for the regulation of the crypto asset market

ChainCatcher news, the European Banking Authority (EBA) has launched a three-round consultation on the draft Regulatory Technical Standards (RTS) under the Markets in Crypto-Assets Regulation (MiCAR) to specify the liquidity requirements for asset reserves, highly liquid financial instruments within asset reserves, the minimum content of liquidity management policies, and the procedures for token issuers. The consultation will last until February 8, 2024.

In a consultation initiated regarding the trading reports of Asset-Referenced Tokens (ART) and Electronic Money Tokens (EMT) denominated in non-EU currencies, the EBA stated that the RTS draft aims to clarify the scope of trading related to the use of ART and EMT as trading instruments denominated in non-EU currencies, the scope of trades that issuers should report, and how issuers should estimate the quantity and value of such trades.

In the consultation launched on the draft recovery plan guidelines prepared by ART and EMT issuers, the EBA indicated that through the recovery plan, issuers of ART and EMT should be prepared in advance to address adverse situations that may affect their ability to comply with the regulatory requirements applicable to asset reserves.

The EBA also proposed the overall technical framework for liquidity management of asset reserves. This includes the minimum creditworthiness and liquidity robustness for credit institutions absorbing deposits from issuers, concentration limits on deposits from issuers at credit institutions, and over-collateralization of token-supported assets.