The European Banking Authority (EBA) has introduced a comprehensive set of technical standards and guidelines as part of the ongoing implementation of the Markets in Crypto-Assets (MiCA) regulation. These new rules provide crucial regulatory guidance for asset-referenced tokens (ARTs) and e-money tokens (EMTs) across Europe, marking a significant step forward in the continent's approach to digital asset regulation.

The EBA's package addresses six key areas, including stress testing programs, asset reserves, and recovery plans. Under the MiCA framework, ARTs are tokens backed by various assets such as commodities, real estate, or a diversified basket of assets. EMTs, on the other hand, maintain stable value by being pegged to fiat currencies, functioning similarly to stablecoins used for payments.

Among the primary guidelines, the EBA emphasizes the necessity for token issuers to maintain sufficient financial resources, known as own funds, to cover potential risks. It also sets forth criteria to determine if an issuer is exposed to higher levels of risk, necessitating an increase in their own fund reserves.

The EBA's reports specify the procedure and timeline for issuers to adjust their own funds to 3% of the average reserve of assets classified as significant. Issuers are required to submit an implementation plan within 25 working days and must achieve compliance within a maximum of six months.

Additionally, the European regulator has established minimum percentages for asset reserves based on daily and weekly maturities, aiming to limit issuers' concentration of highly liquid financial instruments. One draft report highlights that:

"The minimum amount of deposits with credit institutions to be held in the reserve of assets related to tokens that are not significant and are referenced to official currencies should be kept to 30% of the amount referenced, or to 60% if the token is significant, and not raised any higher [...]."

The guidelines also extend to tokens linked to assets other than official currencies, such as commodities or real estate, which can be considered highly liquid. The EBA has placed limits on the volume of these highly liquid financial instruments that a single issuer can hold.

Regarding recovery plans, the EBA incorporates feedback from the consultation period, detailing the content for communication and disclosure. It also clarifies that asset reserve requirements do not apply to EMT issuers already exempted by existing legislation.

These standards and guidelines are part of the broader MiCA regulation implementation, with all digital asset service providers required to comply by July 1, 2026. The comprehensive nature of these guidelines underscores the EBA's commitment to ensuring a robust regulatory framework for the growing digital asset market in Europe.

The EBA's new guidelines not only provide clarity for token issuers but also enhance the overall stability and integrity of the digital asset market. By setting clear requirements and expectations, the EBA aims to foster a safer and more transparent environment for both issuers and investors, ultimately contributing to the long-term growth and adoption of digital assets in the traditional financial landscape.