+Guidelines on redemption plans under MiCAR (EBA/GL/2024/13)
---+1. Compliance and reporting obligations
------+Status of these Guidelines
---------+1. This document contains guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/2010 …
---------+2. Guidelines set the EBA view of appropriate supervisory practices within the European System of …
------+Reporting requirements
---------+3. According to Article 16(3) of Regulation (EU) No 1093/2010, competent authorities must notify …
---------+4. Notifications will be published on the EBA website, in line with Article 16(3). 5 Regulation …
---+2. Subject matter, scope and definitions
------+Subject matter
---------+5. These Guidelines specify (a) the content of the redemption plan, (b) the periodicity for review …
------+Scope of application
---------+6. These Guidelines apply to issuers of asset-referenced tokens and e-money tokens (as defined in …
---------+7. For issuers of e-money tokens that are not subject to the requirement to hold a reserve of …
------+Addressees
---------+8. These Guidelines are addressed to competent authorities as defined in Article 3(1), point (35) …
---------+9. These Guidelines are also addressed to issuers, as defined in Article 3(1), point (10), of …
------+Definitions
---------+10. Unless otherwise specified, terms used and defined in Regulation (EU) 2023/1114 have the same …
---+3. Implementation
------+Date of application
---------+11. These Guidelines apply from [two months after publication of the translations of the Guidelines …
---+4. Redemption plans
------+4.1 Proportionality considerations
---------+12. For the sake of proportionality, to determine the level of detail of the content and the …
---------+13. Redemption plans developed by issuers of a significant ART or EMT, or by multiple issuers in …
---------+14. Issuers that do not meet the criteria set out in paragraph 13 should revise and update the …
------+4.2 General principles and objectives of the redemption plan
---------+15. Where the issuer has more than one outstanding issuance of ARTs or EMTs, the redemption plan of …
---------+16. The redemption plan, drafted in accordance with these Guidelines, could contain personal data …
---------+17. Issuers should draw up the redemption plan by laying down the actions and process with a view …
---------+18. For this purpose, the redemption plan should lay down the actions and related processes to …
---------+19. Unless otherwise disclosed in the crypto-asset white paper or envisaged in the applicable …
---------+20. In order to ensure equitable treatment of all token holders as stated in the crypto-asset white …
---------+21. Issuers of ARTs and of EMTs subject to the requirement to hold a reserve of assets should …
---------+22. Taking into account that token holders have a right of redemption at all times and that the …
---------+23. In order to ensure the effectiveness of the right of redemption and that undue economic harm …
---------+24. Issuers should also clarify in the redemption plan how such costs do not amount, even …
---------+25. Costs indicated in the redemption plan should be identified via transparent processes, be …
---------+26. Paragraphs 22-25 should apply mutatis mutandis to issuers which are not subject to the …
---------+27. In order to meet the token holders’ claims in a n equitable manner and to avoid undue economic …
---------+28. For this purpose, the issuer should develop redemption scenarios under ordinary and stressed …
---------+29. Having regard to the requirement that the execution of the redemption plan has not to affect …
---------+30. When developing such scenarios, issuers subject to the requirement to hold a reserve of assets …
---------+31. Redemption scenarios should reflect redemption in going concern, in the case of normal …
---------+32. For the purpose of developing liquidation strategies, issuers may consider that transactions …
---------+33. Paragraphs 31 and 32 should apply mutatis mutandis to issuers which are not subject to the …
---------+34. Issuers should ensure that the redemption plan lays down in a pragmatic and operational manner …
---------+35. The redemption plan should also include comprehensive and organised planning of the phases and …
---------+36. The phases for the orderly implementation of the plan should include: i. immediate follow-up …
---------+37. The redemption plan should indicate each phase and step where the obligations to fight …
---------+38. In order to meet the requirement that the redemption plan be implemented in a timely manner …
---------+39. The issuer should indicate in the redemption plan the envisaged arrangements to ensure the safe …
------+4.3 Content of the redemption plan
---------+40. The issuer should make sure that the redemption plan contains a clear and detailed description …
---------+41. The redemption plan should duly reflect the impact of the designation of a temporary …
---------+42. The redemption plan should include a mapping of the critical activities that are necessary for …
---------+43. Such mapping of the critical activities should include, where relevant, the issuer’s risk …
---------+44. Issuers of ARTs which are not obliged entities under Directive 2015/849/EU should always …
---------+45. With regard to the critical activities within the issuer’s organisation, t he issuer should …
---------+46. With regard to the critical activities provided by third parties, the redemption plan should …
---------+47. The redemption plan should also provide an overview of the content of the contractual …
---------+48. With specific regard to the custodians of the reserve of assets and to the financial …
---------+49. The list of third-party providers of critical activities and the contractual terms should be …
---------+50. The overview of the contractual arrangements in place with third-party providers of critical …
---------+51. For that purpose, the redemption plan should at least clearly and operationally illustrate the …
---------+52. The issuer should make sure that the redemption plan lays down an orderly process for the …
---------+53. Such a process should be articulated in an operational manner and ensure that the token holders …
---------+54. For this purpose, the redemption plan should describe the processes, the measures to identify …
---------+55. The description of the process should include reference to the compliance with applicable …
---------+56. The redemption plan should clearly indicate the requirements and the minimum content of the …
---------+57. The information listed above and included in the redemption claim should also permit the issuer …
---------+58. The redemption plan should also clarify the relevant sources of information, and the envisaged …
---------+59. The redemption plan should include all relevant steps, actions and processes to develop the …
---------+60. The redemption plan should include a communication plan to be activated without delay upon the …
---------+61. The communication plan should include at least the following: a) the draft public notice to be …
---------+62. The draft public notice should be developed in order to inform the token holders of the …
---------+63. With a view to reaching the general public and the maximum number of token holders, the …
---------+64. The draft public notice should describe in clear and non-technical language the main steps of …
---------+65. For these purposes the draft public notice should include at least: a) the exact date and time …
---------+66. When an ART is issued by multiple issuers, or when a significant EMT is issued by multiple …
---------+67. In the light of this, the redemption plan should be articulated in two sections: the first …
---------+68. Issuers should coordinate to develop and agree on the common section of the redemption plan …
---------+69. To ensure proper coordination, the issuers in the redemption plan should appoint one of them as …
---------+70. The second section of the redemption plan should be specifically tailored to the internal …
---------+71. Competent authorities of each issuer participating in the issuance should in timely fashion …
---------+72. Competent authorities should consult each other and cooperate to assess whether any grounds for …
---------+73. The issuer should take into account that, whilst the recovery plan, developed in accordance …
---------+74. When the issuer is a credit institution or an entity within the scope of application of …
---------+75. In the event that the actions, contractual arrangements, procedures and systems envisaged by …
---------+76. Considering that the resolution plan is developed by the resolution authority and that the …
------+4.4 Periodicity of the review and update
---------+77. In order to ensure that redemption plans are maintained operational and effective at all times …
---------+78. The frequency of the review should take into account the principle of proportionality as …
---------+79. The redemption plan should also be promptly reviewed and updated by the issuer upon the …
------+4.5 Triggers
---------+80. In accordance with Article 47(1) of Regulation (EU) 2023/1114, the implementation of the …
---------+81. In addition to the situations expressly mentioned in Article 47(1) of Regulation (EU) …
---------+82. In the case of commencement of crisis prevention measures or crisis management measures as …
---------+83. For purposes of assessing whether the issuer is ‘ unable or likely to be unable to fulfil its …
---------+84. The aspects that the competent authority should inter alia have regard to when assessing …
---------+85. When assessing the issuer’s inability or likely inability in the near future to comply with the …
---------+86. The factors and elements listed in these Guidelines, respectively in paragraphs 84 and 85 …
---------+87. When determining the issuer ’s inability or likely inability in the near future to fulfil its …
---------+88. In most cases it is expected that several factors, rather than merely one, set out in this …
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Guidelines on redemption plans under MiCAR (EBA/GL/2024/13)

Guidelines on redemption plans under MiCAR (EBA/GL/2024/13)

https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/asset-referenced-and-e-money-tokens-micar/guidelines-redemption-plans-under-micar – PDF

1. Overview

,
1. Compliance and reporting obligations

1. Compliance and reporting obligations
2. Subject matter, scope and definitions

2. Subject matter, scope and definitions
3. Implementation

3. Implementation
4. Redemption plans

4. Redemption plans

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
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