The European Banking Authority (EBA) has recently unveiled an extensive set of technical standards and guidelines as part of the Markets in Crypto-Assets (MiCA) regulation. These guidelines offer regulatory direction for asset-referenced tokens (ARTs) and e-money tokens (EMTs) across Europe.
The package covers a wide range of topics, including stress testing programs, asset reserves, and recovery plans. Under MiCA, ARTs are tokens that are backed by tangible assets such as commodities, real estate, or a diverse range of assets. On the other hand, EMTs are tokens that maintain a stable value by being linked to fiat currencies and are primarily used for payments, similar to stablecoins.
The EBA provides detailed guidance for token issuers, emphasizing the importance of having sufficient financial resources (own funds) to mitigate potential risks. It also establishes criteria to assess whether an issuer is exposed to a higher level of risk, which would necessitate an increase in own fund reserves.
According to the EBA’s final draft report, issuers are required to adjust their own funds to 3% of the average reserve of significant assets within a specified timeframe. They must submit an implementation plan within 25 working days and achieve compliance within a maximum of six months.
Furthermore, the European regulator is imposing minimum percentages for asset reserves based on daily and weekly maturities, as well as restricting issuers from concentrating on highly liquid financial instruments. Tokens tied to assets other than official currencies, such as commodities or real estate, are also considered highly liquid, and the EBA sets limits on the amount of these instruments a single issuer can offer.
Regarding recovery plans, the regulator is incorporating feedback from the consultation period to define communication and disclosure requirements more clearly. Additionally, it clarifies that the regulations on asset reserves do not apply to EMT issuers who are already exempt under existing legislation.
These guidelines are an integral part of the MiCA regulation implementation. Digital asset service providers must adhere to the new standards by July 1, 2026.