MiCAR brings issuers of certain types of crypto-assets into the regulatory framework. Specifically, MiCAR establishes new rules for issuers of crypto-assets known as "stablecoins" including ARTs, EMTs, along with new rules for other crypto-assets such as utility tokens.
As defined by MiCAR:
- An ART purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies;
- An EMTs purports to maintain a stable value by referencing the value of a single official currency; and
- A utility token provides access to a good or service supplied by the issuer of that token.
As of 30 June 2024, issuers of ARTs and EMTs are required to be authorised by their NCA and to publish a white paper containing information on the relevant ART/EMT for consumers.
MiCAR recognises that some ARTs or EMTs may be significant due to their size and other factors and as a result may present an increased risk. Accordingly, the
European Banking Authority (EBA) will have supervisory responsibilities for the issuance function under MiCAR of issuers of significant ARTs and some significant EMTs.
Issuers of ARTs and EMTs - engagement with the Central Bank
A legal person or other undertaking that intends to offer to the public or seek the admission to trading of ARTs should contact the authorisation team ([email protected] at the earliest opportunity.
A credit institution that intends to offer an ART to the public or seek its admission to trading should engage directly with its supervision team at the earliest opportunity for further guidance.
A credit institution or electronic money institution (EMI) that intends to offer an EMT to the public or seek its admission to trading should engage directly with their supervision team at the earliest opportunity for further guidance.
In this statement:
- The EBA outlines it expects that any person which intends to commence ART or EMT activities to comply fully with MiCAR from 30 June 2024.
- The EBA notes that consumers considering buying an EMT or an ART should check whether the issue, offer, or admission to trading is carried out in accordance with MiCAR.
- This information should be signalled clearly in the white paper for the crypto-asset and on the issuer’s/offeror’s trading platform/website, and also documented in the ESMA register. Authorisation information may also be verified on the website of the relevant NCA.
- It is important for consumers to be aware that if an issue, offer, or admission to trading of an ART or EMT is not carried out in accordance with MiCAR, the safeguards set out in MiCAR do not apply, and consumers should be extremely cautious in acquiring such crypto-assets.
- The EBA also notes that from 30 June 2024, stakeholders carrying out ART/EMT activities should assess their compliance with MiCAR, and refrain from carrying out services which constitute offering to the public, seeking admission to trading, or placing non-compliant ARTs/EMTs.
- The Central Bank has not approved or been notified of any crypto-asset white paper for an ART or EMT under MiCAR issued by any Irish Credit Institution, EMI, legal person or other undertaking established in the State.
ESMA notes that NCAs should ensure compliance by CASPs regarding non-compliant ARTs or EMTs as soon as possible and no later than end of Q1 2025. ESMA notes that in practices this means that CASPs operating a trading platform for crypto-assets are expected to stop making non-MiCAR compliant ARTs and EMTs available for trading.
EBA Statement - supervisory priorities for issuers of ARTs and EMTs 2024 /2025 (July 2024):
On 5 July, the EBA published a separate statement for the attention of persons issuing to the public, offering to the public, or seeking admission to trading of ARTs and EMTs and for consumers.
The EBA also sets out key topics for supervisory attention across the European Union for issuers of ARTs/EMTs in 2024/2025.