The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published a joint document that contains crypto entity suitability guidelines.
Two projects from the paper involve assessing the suitability of members of management boards and shareholders or participants who hold significant stakes in asset-linked token (ART) issuers and crypto asset service providers (CASPs).
The two agencies offer guidance to evaluate the suitability of shareholders or participants holding significant stakes in ART or CASP issuers.
The new proposals aim to protect the integrity and instill confidence in the cryptocurrency market and related services while minimizing the potential for discrepancies in the application of rules and arbitration. However, the consultation period remains open until January 22, 2024.
Before this, the European Union’s banking regulator called on stablecoin issuers to voluntarily adhere to specific “guidelines” related to risk management and consumer protection.
Thus, on July 12, the EBA released its initial set of measures for public consultation to clarify regulatory requirements for crypto asset markets, which are due to come into force on June 30, 2024.
The new regulation was another initiative within the framework of the Market in Crypto Assets (MiCA) regulation, adopted in the spring of this year. The legislation is expected to come into force next year and will help ease the entry of cryptocurrency companies into the European market, and from 2025, cryptocurrency transactions will be regulated.