The European Banking Authority (EBA) has launched a public consultation on its new Guidelines on internal governance arrangements for issuers of asset referenced tokens (ARTs) under the Market in crypto-assets Regulation (MiCAR).
These Guidelines specify the governance provisions that these issuers should comply with, taking into account the proportionality principle. This governance framework aims at ensuring a sound management of all risks associated with the activities of issuers of ARTs, such as operational risks, including fraud, cyber, and compliance risks. In addition, the provisions aim to adequately protect consumers and investors.
The consultation paper provides details on how issuers of ARTs should identify sources of operational risk and minimise those risks through the development of appropriate systems, controls, and procedures. It also specifies the arrangements to be put in place when relying on third-party entities for operating the reserve of assets, for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public. Finally, the draft Guidelines provide details on the establishment of business continuity plans.
The consultation runs until 22 January 2024.