EBA consults on draft technical standards specifying the requirements for policies and procedures on conflicts of interest for issuers of ARTs under the Markets in Crypto-Assets Regulation (MiCAR)
The European Banking Authority (EBA) has released a Consultation Paper on draft regulatory technical standards (RTS) for managing conflicts of interest in issuers of asset-referenced tokens (ARTs) as part of the Markets in Crypto-Assets Regulation (MiCAR). These standards aim to enhance the handling of conflicts of interest among ART issuers and ensure consistency across the European Union.
ART issuers are required to establish effective policies and procedures to identify, manage, prevent, and disclose conflicts of interest. These policies must consider various circumstances that could influence the impartiality and objectivity of issuers and their connected parties. The draft RTS particularly focuses on potential conflicts related to the reserve of assets, personal transactions, and remuneration procedures that could lead to conflicts of interest.
The RTS highlight the critical role of issuers’ management bodies in defining and adopting these policies and procedures. It also outlines the disclosure requirements that ART issuers must make public on their websites in appropriate languages.
This publication is a part of MiCAR’s third batch of policy products. Stakeholders can comment on this paper through the EBA’s consultation page until 7 March 2024. A virtual public hearing is scheduled for 11 January, with a registration deadline of 9 January 2024.
These draft RTS were developed in accordance with Article 32(1) and 32(5) of Regulation (EU) 2023/1114, focusing on conflicts of interest between ART issuers, connected parties, and ART holders. The EBA worked closely with the European Securities and Markets Authority (ESMA) to align these standards with those for crypto-asset service providers, considering differences due to varying activities. The EBA also considered existing frameworks and guidelines on conflicts of interest in other Union legislative acts related to financial services.