What Does It Mean for Stakeholders?

The European cryptocurrency landscape is witnessing a surge in regulatory discussions as the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) align their efforts. 

Today, they unveiled a Consultation Paper outlining two draft Joint Guidelines. This step aims to establish a benchmark for the suitability assessments of the management bodies, shareholders, and members with qualifying holdings of issuers of asset-referenced tokens (ARTs) and crypto-asset service providers (CASPs).

The move comes against the backdrop of the broader initiative to ensure a uniform application of the crypto rules across Europe. As the digital asset marketplace burgeons, understanding the ramifications of these guidelines becomes pivotal for stakeholders across the crypto-spectrum.

Ensuring Integrity and Trust in the Crypto Arena

One of the primary goals of these Joint Guidelines is to reinforce the integrity of the crypto-asset market. The crux is to ascertain that the key members associated with ARTs issuers and CASPs, along with individuals holding or aiming to acquire qualifying stakes in them, are aptly suitable.

The draft Joint Guidelines stress a comprehensive assessment of the management body members of ART issuers and CASPs. 

This encapsulates gauging their knowledge, skills, and experience, as well as their reputation, honesty, and integrity. Additionally, it considers their time commitment to executing their roles efficiently.

Evaluating Shareholders and Members: What’s New?

The second draft of the Joint Guidelines places an emphasis on the evaluation of shareholders and members holding qualifying stakes in ART issuers or CASPs. This provides a standardized method for competent authorities to assess the suitability of these shareholders and members. 

The focus is to discern their aptness for authorization as ART issuers or CASPs and for the prudential evaluation of proposed acquisitions.

The crypto community and other stakeholders can share their inputs and comments on this consultation. According to the report, interested parties can forward their thoughts directly to the EBA via their official consultation page. 

It’s worth noting that the last date for submission is 22 January 2024. All contributions made during this consultation phase will be made public at its conclusion unless anonymity is specifically requested.