EU Body Publishes Final Draft Technical Standards for Prudential Matters: MiCA
Summary
The European Banking Authority (EBA) has released the final draft technical standards on prudential matters for firms to adhere to under the Markets in Crypto Assets (MiCA) legislation. The MiCA, passed last year, includes rules for cryptocurrency companies and stablecoin issuers. The EBA's standards detail criteria for stress testing programs, liquidity requirements of reserve assets, and a recovery plan that issuers must develop. Issuers of asset-referenced tokens must conduct stress testing based on plausible financial stress scenarios. The draft technical standards were developed in collaboration with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB).
