in the field of asset-linked tokens and
e-money tokens from June 30, 2024
Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 ("MiCa") is intended to revolutionize the issuance and trading of crypto-assets. It represents the first comprehensive regulation of its kind in the European Union and under the laws of most Member States.
While most of the provisions of the regulation will apply from December 30, 2024, the provisions on the issuance of asset-linked tokens and e-money tokens will apply from June 30, 2024.
Under Article 3(1)(6) of the MiCa, an asset-linked token means a type of crypto-asset that is not an electronic money token and that is intended to maintain a stable value by being linked to another value or right, or a combination thereof, including one or more official currencies.
According to Article 3, paragraph 1, point 7 of MiCa, an electronic money token or e-money token means a type of crypto-asset that is intended to maintain a stable value by being pegged to a single official currency.
An asset-linked token can be linked, for example, to the values of traded commodities. Pursuant to Article 16 of the MiCa, only the issuer of an asset-linked token may apply for admission to trading, provided that it is a legal person or other undertaking established in the Union and has obtained authorisation in accordance with Article 21 of the MiCa by the competent authority of its home Member State, or is a credit institution meeting the requirements set out in Article 17 of the MiCa.
When referring to the application submitted by legal entities or other enterprises intending to make a public offering of asset-linked tokens or apply for admission to trading of such tokens, its elements should include, in particular, in addition to basic information about the issuer, a detailed description of the management principles adopted by the issuer applying for the permit, an action program specifying the business model that the issuer applying for the permit intends to implement, a legal opinion confirming the nature of the token, an information document regarding the crypto-asset, a description of contractual arrangements with external entities, and a description of the business continuity policy of the issuer applying for the permit.
In the case of e-money tokens, EU legislators have significantly limited the number of entities authorized to issue them. It is prohibited to publicly offer an e-money token or seek admission to trading of such a token in the EU unless the person making the public offer or seeking such admission to trading is the issuer of such e-money token and is licensed to operate as a credit institution or electronic money institution, and has notified the competent authority and published the information document regarding the crypto-asset in accordance with Article 51 of the MiCa.
Businesses interested in issuing the described token types will therefore be required to meet the requirements set out in the regulation if the issuance begins after June 30th of this year, even if, for other planned activities, the legal requirements of MiCa come into effect on December 30th of this year. However, it should be noted that the obligations coming into force apply to the issuance of the cryptoassets indicated above. Licensing requirements related to the provision of cryptoasset services will be regulated by MiCa from December 30th, 2024, regardless of the type of cryptoasset to which the services are linked.
This alert is for informational purposes only and does not constitute legal advice.
Legal status as of June 13, 2024
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