The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have jointly released a consultation paper featuring two draft documents.
These drafts focus on evaluating the suitability of people who own significant stakes in companies that deal with asset-referenced tokens (ARTs) and crypto asset services (CASPs).
For those who own these stakes, there are shared guidelines for regulatory assessment. These guidelines help regulators decide if they should authorize the issuance of ARTs and CASPs and assess the financial soundness of potential buyers.
For the people in charge of these companies, there are standardized criteria to judge their knowledge, expertise, integrity, and commitment to their roles.
The guidelines aim to protect the integrity of the cryptocurrency market and its associated services, as well as to reduce the possibility of rule application discrepancies and arbitrage, with the consultation period running until January 22, 2024.
The European Union’s banking regulator also encourages stablecoin issuers to follow risk and consumer protection principles voluntarily. The EBA introduced measures to clarify regulations for crypto assets, which will become enforceable on June 30, 2024.
This regulatory collaboration signifies a crucial step in ensuring transparency and accountability in the rapidly evolving world of cryptocurrencies and token-based assets, ultimately promoting a safer environment for investors and consumers.