This article has been republished with permission from Binance News.
According to Cointelegraph, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have jointly released a consultation paper featuring two drafts on October 20. These drafts focus on the assessment of the suitability of management body members and shareholders or members holding qualifying stakes in issuers of asset-referenced tokens (ARTs) and crypto-asset service providers (CASPs).
The proposed joint guidelines aim to provide regulatory bodies with a shared approach for assessing the suitability of shareholders or members, whether direct or indirect, holding qualifying stakes in ART or CASP issuers. This includes granting authorization for ART and CASP issuance and conducting prudential assessments for potential acquisitions. Additionally, the guidelines offer standardized criteria for evaluating the knowledge, expertise, integrity, and ability of management body members in ART and CASP issuer firms to dedicate adequate time to fulfill their responsibilities.
These guidelines are designed to nurture and safeguard the integrity of the cryptocurrency market and its associated services, as well as instill trust by ascertaining the suitability of both the management body members of ART and CASP issuers and individuals seeking to hold or acquire qualifying stakes in them. The consultation period will remain open until January 22, 2024, with the aim of offering clarity and standardization in evaluating the suitability of the management body, shareholders, and members holding qualifying stakes, and minimizing the potential for rule application discrepancies and arbitrage.
In anticipation of forthcoming regulations, the European Union’s banking regulator has encouraged stablecoin issuers to voluntarily adhere to specific ‘guiding principles’ related to risk management and consumer protection. The EBA unveiled its initial set of measures for public input on July 12, aiming to elucidate the requirements of the Markets in Crypto-Assets regulation (MiCA), which is slated to be enforced on June 30, 2024.