EU Body Publishes Final Draft Technical Standards for Prudential Matters: MiCA

The European Union's MiCA legislation - the wide-ranging package of bespoke rules for the crypto sector - was enforced last year.

AccessTimeIconJun 13, 2024 at 3:35 p.m. UTC
Updated Jun 13, 2024 at 3:37 p.m. UTC
  • The European Banking Authority published the final version of draft technical standards on prudential matters for firms to comply.
  • The technical standards are part of the European Union's Markets in Crypto Asset legislation.

The European Banking Authority (EBA) published on Thursday the final draft technical standards on prudential matters for firms to comply with under the Markets in Crypto Assets (MiCA) legislation.

The wide-ranging package of bespoke rules for the crypto sector, MiCA was passed last year. The legislation comes with rules for crypto companies and stablecoin issuers.

The EBA's standards set out a criteria for stress testing programmes and spells out the liquidity requirements of reserve assets as well as a recovery plan that issuers need to develop and more.

"Issuers of asset referenced tokens are required to conduct stress testing based on plausible financial stress scenarios, and competent authorities will be able to increase the amount of own funds requirements of an issuer of asset-referenced tokens having regard to the risk outlook and stress testing results," the recently published package read.

The draft technical standards were developed in close cooperation with bloc of 27 nations other bodies the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB).

Edited by Stephen Alpher.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

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