### 3. member states shall ensure that institutions draw up , maintain and update individual statements setting out the roles and duties of each member of the management body , senior management and key function holders and a mapping of duties , including details of the reporting lines and the lines of responsibility , and the persons who are part of the governance arrangements as referred to in article 74 (1) and their duties approved by the management body. ### 3. member states shall ensure that institutions draw up , maintain and update individual statements setting out the roles of key function holders and the persons who are part of the governance arrangements as referred to in article 74.


### member states shall ensure that the statements of duties and the mapping of the duties are made available and communicated in due time , upon request , to the competent authorities. ### member states shall ensure that the statements of roles are made available and communicated in due time , upon request , to the competent authorities.


### eba shall issue guidelines , in accordance with article 16 of regulation (eu) no 1093/2010 , ensuring the implementation of this paragraph and its consistent application. eba shall issue those guidelines by [op please insert the date = 12 months from date of entry into force of this amending directive]. ### deleted


### 13. this article and articles 91a to 91d shall be without prejudice to provisions of the member states on the representation of employees in the management body.’; ### 13. this article and articles 91a to 91d shall be without prejudice to provisions of the member states on the representation of employees in the management body , the appointment by regional or local elected bodies or the appointments where the management body does not have any competence in the process of selecting and appointing its members.;


### (20) the following articles 91a to 91d are inserted: ### deleted


### 2. the entities shall assess the suitability of members of the management body before those members take up their positions. ### 2. small , non-complex institutions within the meaning of art. 4 (1) no. 145 crr ii , may assess the suitability of members of the management body after those members take up their positions. all other entities shall assess the suitability of members of the management body before those members take up their positions.


### 2. the entities shall assess the suitability of members of the management body before those members take up their positions. where the entities conclude , based on the suitability assessment , that the member concerned does not fulfil the criteria and requirements set out in paragraph 1 , the entities shall ensure that the member concerned does not take up the position considered. ### 2. the timing of the suitability assessment is subject to national law and takes place before or after the members of the management body take up their positions. where the entities conclude , based on the suitability assessment , that the member concerned does not fulfil the criteria and requirements set out in paragraph 1 , the entities shall ensure that the member concerned does not take up the position considered.


### however , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement. ### however , where it is strictly necessary to replace a member of the management body immediately , the entities may conduct a lighter suitability assessment of such replacement members before they have taken up their positions. a complete assessment shall be carried out as soon as possible after the replacement members have taken up their positions. eba shall issue guidelines specifying the conditions for conducting a lighter assessment , including guidance on the cases that might be considered urgent. the entities shall be able to duly justify such immediate replacement.


### however , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement. ### without prejudice to the timing provided for in national law , where it is strictly necessary to replace a member of the management body immediately , the entities may assess the suitability of such replacement members after they have taken up their positions. the entities shall be able to duly justify such immediate replacement.


### 2. for the assessment referred to in paragraph 1 , the entities shall submit the initial application of the relevant member of the management body to the competent authorities without undue delay after the internal suitability assessment is completed. ### 2. for the assessment referred to in paragraph 1 , the entities shall submit the initial application of the relevant member of the management body to the competent authorities without undue delay after the internal suitability assessment is completed.


### 3. competent authorities shall acknowledge in writing the receipt of the application and the documentation required in accordance with paragraph 2 within two working days. ### 3. competent authorities shall complete the suitability assessment within 80 working days (“assessment period”) as from the date of the written acknowledgement of receipt of the complete application and underlying documentation.


### 3. competent authorities shall acknowledge in writing the receipt of the application and the documentation required in accordance with paragraph 2 within two working days. ### 3. competent authorities shall complete the suitability assessment within 80 working days ("assessment period") as from the date of the written acknowledgment of receipt of the complete application and underlying documentation.


### competent authorities shall complete the assessment referred to in paragraph 1 within 80 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph. ### deleted


### competent authorities shall complete the assessment referred to in paragraph 1 within 80 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph. ### competent authorities shall complete the assessment referred to in paragraph 1 within 40 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request additional information or documentation from the entities or other authorities or which conduct interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. failure by the entities to provide the requested information within this deadline shall result in the procedure being closed without any further assessment by the competent authority. the closure of the procedure shall be without prejudice to the possibility for the entity to submit a new application.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request additional information or documentation from the entities or other authorities or which conduct interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. failure by the entities to provide the requested information within this deadline shall result in the procedure being closed without any further assessment by the competent authority. the closure of the procedure shall be without prejudice to the possibility by the entity to submit a new application.


### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request from the entities additional information or documentation , including interviews or hearings , may extend the assessment period for a maximum of 20 working days. however , the assessment period shall not exceed 60 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities.


### 8. in accordance with paragraphs 1 to 7 , competent authorities shall carry out the suitability assessment before members of the management body take up their positions in the following entities: ### deleted


### relevant subsidiary; ### relevant subsidiary that qualifies as a large institution;


### 10. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. ### 10. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. when developing the draft implementing technical standards , eba shall take into account existing practices and tools.


### 2. where the entities conclude , based on the assessment referred to in paragraph 1 , that the person does not fulfil the requirements set out in that paragraph , they shall not appoint that person as a key function holder. the entities shall take all measures necessary to ensure the appropriate functioning of that position. ### 2. small , non-complex institutions within the meaning of art. 4 (1) no. 145 crr ii , may assess the suitability of key function holders after those persons take up their positions. all other entities shall assess the suitability of key function holders before those persons take up their positions.


### relevant subsidiary. ### relevant subsidiary that qualifies as a large institution.


### competent authorities shall assess the suitability of the heads of internal control functions and chief financial officer within 80 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph. ### competent authorities shall assess the suitability of the heads of internal control functions and chief financial officer within 30 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph.


### 4. competent authorities that request from the entities referred to paragraph 1 additional information or documentation , including interviews or hearings , may extend the assessment period for maximum 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities referred to paragraph 1 shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request additional information or documentation from the entities or other authorities or which conduct including interviews or hearings , may extend the assessment period for maximum 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities referred to paragraph 1 shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. failure by the entities to provide the requested information within this deadline shall result in the procedure being closed without any further assessment by the competent authority. the closure of the procedure shall be without prejudice to the possibility for the entity to submit a new application.


### 4. competent authorities that request from the entities referred to paragraph 1 additional information or documentation , including interviews or hearings , may extend the assessment period for maximum 40 working days. however , the assessment period shall not exceed 120 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities referred to paragraph 1 shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities. ### 4. competent authorities that request from the entities referred to paragraph 1 additional information or documentation , including interviews or hearings , may extend the assessment period for maximum 10 working days. however , the assessment period shall not exceed 40 working days. request for additional information or documentation shall be made in writing and shall be specific. the entities referred to paragraph 1 shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities.


### 8. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. ### 8. eba shall develop draft implementing technical standards on standard forms , templates and procedures for the provision of the information referred to in paragraph 2. when developing the draft implementing technical standards , eba shall take into account existing practices and tools.


### 4. eba , eiopa and esma shall , through the joint committee referred to in article 54 of regulations (eu) no 1093/2010 , (eu) no 1094/2010 and (eu) no 1095/2010 , develop guidelines to ensure that consistency , long-term considerations and common standards for assessment methodologies are integrated into the stress testing of environmental , social and governance risks. stress testing of environmental , social and governance risks by competent authorities should start with climate-related factors. eba , eiopa and esma shall , through the joint committee referred to in article 54 of regulations (eu) no 1093/2010 , (eu) no 1094/2010 and (eu) no 1095/2010 , explore how social and governance related risks can be integrated into stress testing.; ### deleted


### require institutions to reduce the risks arising from the institutions’ misalignment with relevant policy objectives of the union and broader transition trends relating to environmental , social and governance factors over the short , medium and long term , including through adjustments to their business models , governance strategies and risk management.; ### deleted


### require institutions to reduce the risks arising from the institutions’ misalignment with relevant policy objectives of the union and broader transition trends relating to environmental , social and governance factors over the short , medium and long term , including through adjustments to their business models , governance strategies and risk management.; ### require institutions to reduce the risks arising from the institutions’ misalignment with relevant policy objectives of the union relating to environmental , social and governance factors over the short , medium and long term , including through adjustments to their business models , governance strategies and risk management.;


### 6. where an institution becomes bound by the output floor , the following shall apply: ### 6. where an institution becomes bound by the output floor , the following shall apply to avoid the double counting of risks in pillar ii:


### 6. where an institution becomes bound by the output floor , the following shall apply: ### 6. where an institution becomes bound by the output floor , the following shall always apply:


### the nominal amount of additional own funds required by the institution’s competent authority in accordance with article 104(1) , point (a) , to address risks other than the risk of excessive leverage shall not increase as a result of the institutions’ becoming bound by the output floor; ### the nominal amount of additional own funds required by the institution’s competent authority in accordance with article 104(1) , point (a) shall not increase as a result of the institutions’ becoming bound by the output floor;


### the institution’s competent authority shall , without undue delay , and no later than by the end date of the next review and evaluation process , review the additional own funds it required from the institution in accordance with article 104(1) , point (a) , and remove any parts thereof that would double-count the risks that are already fully covered by the fact that the institution is bound by the output floor. ### the institution’s competent authority shall , without undue delay , and no later than 6 months before the end date of the next review and evaluation process , review the additional own funds it required from the institution in accordance with article 104(1) , point (a) , and remove any parts thereof that would double-count the risks that are already fully covered by the fact that the institution is bound by the output floor.


### for the purposes of this article and articles 131 and 133 of this directive , an institution shall be considered as bound by the output floor when the institution’s total risk exposure amount calculated in accordance with article 92(3) , point (a) , of regulation (eu) no 575/2013 exceeds its un-floored total risk exposure amount calculated in accordance with article 92(4) of that regulation. ### for the purposes of this article , an institution shall be considered as bound by the output floor when the institution’s total risk exposure amount calculated in accordance with article 92(3) , point (a) , of regulation (eu) no 575/2013 exceeds its un-floored total risk exposure amount calculated in accordance with article 92(4) of that regulation.


### (30) article 131 is amended as follows: ### deleted


### the following paragraph 2a is inserted: ### deleted


### in paragraph 8 , point (c) is replaced by the following: ### deleted


### in paragraph 9 , the following point (g) is added: ### deleted


### (3) some crypto-assets qualify as financial instruments as defined in article 4(1) , point (15) , of directive 2014/65/eu of the european parliament and of the council33 . the majority of crypto-assets , however , fall outside of the scope of union legislation on financial services. there are no rules for services related to crypto-assets , including for the operation of trading platforms for crypto-assets , the service of exchanging crypto-assets against fiat currency or other crypto-assets , or the custody of crypto-assets. the lack of such rules leaves holders of crypto-assets exposed to risks , in particular in areas not covered by consumer protection rules. the lack of such rules can also lead to substantial risks to market integrity in the secondary market of crypto-assets , including market manipulation. to address those risks , some member states have put in place specific rules for all – or a subset of – crypto-assets that fall outside union legislation on financial services. other member states are considering to legislate in this area. ### (3) some crypto-assets qualify as financial instruments as defined in article 4(1) , point (15) , of directive 2014/65/eu of the european parliament and of the council33 . other crypto-assets may qualify as ´deposits´ as defined in article 2 (1) , point (3) of directive 2014/49/eu of the european parliament and the council. the majority of crypto-assets , however , fall outside of the scope of union legislation on financial services. there are no rules for services related to crypto-assets , including for the operation of trading platforms for crypto-assets , the service of exchanging crypto-assets against fiat currency or other crypto-assets , or the custody of crypto-assets. the lack of such rules leaves holders of crypto-assets exposed to risks , in particular in areas not covered by consumer protection rules. the lack of such rules can also lead to substantial risks to market integrity in the secondary market of crypto-assets , including market manipulation. to address those risks , some member states have put in place specific rules for all – or a subset of – crypto-assets that fall outside union legislation on financial services. other member states are considering to legislate in this area.


### (6) union legislation on financial services should not favour one particular technology. crypto-assets that qualify as ‘financial instruments’ as defined in article 4(1) , point (15) , of directive 2014/65/eu should therefore remain regulated under the general existing union legislation , including directive 2014/65/eu , regardless of the technology used for their issuance or their transfer. ### (6) union legislation on financial services should not favour one particular technology. crypto-assets that qualify as ‘financial instruments’ as defined in article 4(1) , point (15) , of directive 2014/65/eu or as ´deposits´ as defined in article 2 (1) , point (3) of directive 2014/49/eu of the european parliament and the council should therefore remain regulated under the general existing union legislation , including directive 2014/65/eu and directive 2014/49/eu respectively , regardless of the technology used for their issuance or their transfer.


### (7) crypto-assets issued by central banks acting in their monetary authority capacity or by other public authorities should not be subject to the union framework covering crypto-assets , and neither should services related to crypto-assets that are provided by such central banks or other public authorities. ### (7) crypto-assets and central bank money based on dlt or in a digital form issued by central banks acting in their monetary authority capacity or by other public authorities should not be subject to the union framework covering crypto-assets , and neither should services related to crypto-assets and central bank money based on dlt or in a digital form that are provided by such central banks or other public authorities.


### (8) any legislation adopted in the field of crypto-assets should be specific , future-proof and be able to keep pace with innovation and technological developments. ‘crypto-assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto-assets which currently fall outside the scope of union legislation on financial services. such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the financial action task force (fatf)34 . for the same reason , any list of crypto-asset services should also encompass virtual asset services that are likely to raise money-laundering concerns and that are identified as such by the fatf. ### (8) any legislation adopted in the field of crypto-assets should be specific , future-proof and be able to keep pace with innovation and technological developments. ‘crypto-assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto-assets , which have or may have a financial use , can be transferred between holders and which currently fall outside the scope of union legislation on financial services. such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the financial action task force (fatf)34 . for the same reason , any list of crypto-asset services should also encompass virtual asset services that are likely to raise money-laundering concerns and that are identified as such by the fatf.


### (15) in order to ensure a proportionate approach , the requirements to draw up and publish a crypto-asset white paper should not apply to offers of crypto-assets , other than asset-referenced tokens or e-money tokens , that are offered for free , or offers of crypto-assets that are exclusively offered to qualified investors as defined in article 2 , point (e) , of regulation (eu) 2017/1129 of the european parliament and of the council37 and can be exclusively held by such qualified investors , or that , per member state , are made to a small number of persons , or that are unique and not fungible with other crypto-assets. ### (15) in order to ensure a proportionate approach , the requirements to draw up and publish a crypto-asset white paper should not apply to offers of crypto-assets , other than asset-referenced tokens or e-money tokens , that are offered for free , or offers of crypto-assets that are exclusively offered to qualified investors as defined in article 2 , point (e) , of regulation (eu) 2017/1129 of the european parliament and of the council37 and can be exclusively held by such qualified investors , or that , per member state , are made to a small number of persons , or that are unique and not fungible with other crypto-assets. this regulation shall also not apply to crypto assets that have a very narrow and precise use case , that are designed for use in only a specific store or limited network of stores and that cannot be transferred between holders. such specific-purpose crypto assets include inter alia public transport tokens and tokens for vouchers or loyalty schemes.


### (28) offers to the public of asset-referenced tokens in the union or seeking an admission of such crypto-assets to trading on a trading platform for crypto-assets should be possible only where the competent authority has authorised the issuer of such crypto-assets and approved the crypto-asset white paper regarding such crypto-assets. the authorisation requirement should however not apply where the asset-referenced tokens are only offered to qualified investors , or when the offer to the public of asset-referenced tokens is below a certain threshold. credit institutions authorised under directive 2013/36/eu of the european parliament and of the council41 should not need another authorisation under this regulation in order to issue asset-referenced tokens. in those cases , the issuer of such asset-referenced tokens should be still required to produce a crypto-asset white paper to inform buyers about the characteristics and risks of such asset-referenced tokens and to notify it to the relevant competent authority , before publication. ### (28) offers to the public of asset-referenced tokens in the union or seeking an admission of such crypto-assets to trading on a trading platform for crypto-assets should be possible only where the competent authority has authorised the issuer of such crypto-assets and approved the crypto-asset white paper regarding such crypto-assets. the authorisation requirement should however not apply where the asset-referenced tokens are only offered to qualified investors , or when the offer to the public of asset-referenced tokens is below a certain threshold. credit institutions authorised under directive 2013/36/eu of the european parliament and of the council41 should not need another authorisation under this regulation in order to issue asset-referenced tokens. they should , however , notify at least three months prior to the issuance their respective competent authority of their intention to issue an asset-referenced token. in those cases , the issuer of such asset-referenced tokens should be still required to produce a crypto-asset white paper to inform buyers about the characteristics and risks of such asset-referenced tokens and to notify it to the relevant competent authority , before publication.


### (29) a competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability , monetary policy transmission and monetary sovereignty. the competent authority should consult the eba and esma and , where the asset-referenced tokens is referencing union currencies , the european central bank (ecb) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. the eba , esma , and , where applicable , the ecb and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. where authorising a prospective issuer of asset-referenced tokens , the competent authority should also approve the crypto-asset white paper produced by that entity. the authorisation by the competent authority should be valid throughout the union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the single market and to seek an admission to trading on a trading platform for crypto-assets. in the same way , the crypto-asset white paper should also be valid for the entire union , without possibility for member states to impose additional requirements. ### (29) a competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability , monetary policy transmission and monetary sovereignty. the competent authority should consult the eba and esma and , where the asset-referenced tokens is referencing union currencies , the european central bank (ecb) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. the full supervisory competences and responsibilities should remain with the competent authorities. the eba , esma , and , where applicable , the ecb and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. where authorising a prospective issuer of asset-referenced tokens , the competent authority should also approve the crypto-asset white paper produced by that entity. the authorisation by the competent authority should be valid throughout the union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the single market and to seek an admission to trading on a trading platform for crypto-assets. in the same way , the crypto-asset white paper should also be valid for the entire union , without possibility for member states to impose additional requirements.


### (30) to ensure consumer protection , issuers of asset-referenced tokens should always provide holders of asset-referenced tokens with clear , fair and not misleading information. the crypto-asset white paper on asset-referenced tokens should include information on the stabilisation mechanism , on the investment policy of the reserve assets , on the custody arrangements for the reserve assets , and on the rights provided to holders. where the issuers of asset-referenced tokens do not offer a direct claim or redemption right on the reserve assets to all the holders of such asset-referenced tokens , the crypto-asset white paper related to asset-referenced tokens should contain a clear and unambiguous warning in this respect. marketing communications of an issuer of asset-referenced tokens should also include the same statement , where the issuers do not offer such direct rights to all the holders of asset-referenced tokens. ### (30) to ensure consumer protection , issuers of asset-referenced tokens should always provide holders of asset-referenced tokens with clear , fair and not misleading information. the crypto-asset white paper on asset-referenced tokens should include information on the stabilisation mechanism , on the investment policy of the reserve assets , on the custody arrangements for the reserve assets , and on the rights provided to holders.


### (37) in order to stabilise the value of their asset-referenced tokens , issuers of asset-referenced tokens should constitute and maintain a reserve of assets backing those crypto-assets at all times. issuers of asset-referenced tokens should ensure the prudent management of such a reserve of assets and should in particular ensure that the creation and destruction of asset-referenced tokens are always matched by a corresponding increase or decrease in the reserve assets and that such increase or decrease is adequately managed to avoid adverse impacts on the market of the reserve assets. issuers of asset-backed crypto-assets should therefore establish , maintain and detail policies that describe , inter alia , the composition of the reserve assets , the allocation of assets , the comprehensive assessment of the risks raised by the reserve assets , the procedure for the creation and destruction of the asset-referenced tokens , the procedure to purchase and redeem the asset-referenced tokens against the reserve assets and , where the reserve assets are invested , the investment policy that is followed by the issuer. ### (37) in order to stabilise the value of their asset-referenced tokens , issuers of asset-referenced tokens should constitute and maintain a reserve of assets backing those crypto-assets at all times. issuers of asset-referenced tokens should ensure the prudent management of such a reserve of assets and should in particular ensure that the creation and destruction of asset-referenced tokens are always matched by a corresponding increase or decrease in the reserve assets and that such increase or decrease is adequately managed to avoid adverse impacts on the market of the reserve assets. issuers of asset-referenced crypto-assets should therefore establish , maintain and detail policies that describe , inter alia , the composition of the reserve assets , the allocation of assets , the comprehensive assessment of the risks raised by the reserve assets , the procedure for the creation and destruction of the asset-referenced tokens , the procedure to purchase and redeem the asset-referenced tokens against the reserve assets and , where the reserve assets are invested , the investment policy that is followed by the issuer.


### (38) to prevent the risk of loss for asset-referenced tokens and to preserve the value of those assets issuers of asset-referenced tokens should have an adequate custody policy for reserve assets. that policy should ensure that the reserve assets are entirely segregated from the issuer’s own assets at all times , that the reserve assets are not encumbered or pledged as collateral , and that the issuer of asset-referenced tokens has prompt access to those reserve assets. the reserve assets should , depending on their nature , be kept in custody either by a credit institution within the meaning of regulation (eu) no 575/2013 or by an authorised crypto-asset service provider. credit institutions or crypto-asset service providers that keep in custody the reserve assets that back the asset-referenced tokens should be responsible for the loss of such reserve assets vis-à-vis the issuer or the holders of asset-referenced tokens , unless they prove that such loss has arisen from an external event beyond reasonable control. ### (38) to prevent the risk of loss for asset-referenced tokens and to preserve the value of those assets issuers of asset-referenced tokens should have an adequate custody policy for reserve assets. that policy should ensure that the reserve assets are entirely segregated from the issuer’s own assets at all times , that the reserve assets are not encumbered or pledged as collateral , and that the issuer of asset-referenced tokens has prompt access to those reserve assets. the reserve assets should , depending on their nature , be kept in custody either by a credit institution within the meaning of regulation (eu) no 575/2013 , an authorised investment firm that specialises in the safe-keeping of assets or by an authorised crypto-asset service provider. credit institutions or crypto-asset service providers that keep in custody the reserve assets that back the asset-referenced tokens should be responsible for the loss of such reserve assets vis-à-vis the issuer or the holders of asset-referenced tokens , unless they prove that such loss has arisen from an external event beyond reasonable control.


### (39) to protect holders of asset-referenced tokens against a decrease in value of the assets backing the value of the tokens , issuers of asset-referenced tokens should invest the reserve assets in secure , low risks assets with minimal market and credit risk. as the asset-referenced tokens can be used as a means of payment , all profits or losses resulting from the investment of the reserve assets should be borne by the issuer of the asset-referenced tokens. ### (39) to protect holders of asset-referenced tokens against a decrease in value of the assets backing the value of the tokens , issuers of asset-referenced tokens should invest the reserve assets in secure , low risks assets with minimal market , credit and concentration risk. as the asset-referenced tokens can be used as a means of payment , all profits or losses resulting from the investment of the reserve assets should be borne by the issuer of the asset-referenced tokens.


### (40) some asset-referenced tokens may offer all their holders rights , such as redemption rights or claims on the reserve assets or on the issuer , while other asset-referenced tokens may not grant such rights to all their holders and may limit the right of redemption to specific holders. any rules regarding asset-referenced tokens should be flexible enough to capture all those situations. issuers of asset-referenced tokens should therefore inform the holders of asset-referenced tokens on whether they are provided with a direct claim on the issuer or redemption rights. where issuers of asset-referenced tokens grant direct rights on the issuer or on the reserve assets to all the holders , the issuers should precisely set out the conditions under which such rights can be exercised. where issuers of asset-referenced tokens restrict such direct rights on the issuer or on the reserve assets to a limited number of holders of asset-referenced tokens , the issuers should still offer minimum rights to all the holders of asset-referenced tokens. issuers of asset-referenced tokens should ensure the liquidity of those tokens by concluding and maintaining adequate liquidity arrangements with crypto-asset service providers that are in charge of posting firm quotes on a predictable basis to buy and sell the asset-referenced tokens against fiat currency. where the value of the asset-referenced tokens varies significantly from the value of the reserve assets , the holders of asset-referenced tokens should have a right to request the redemption of their asset-referenced tokens against reserve assets directly from the issuer. issuers of asset-referenced tokens that voluntarily stop their operations or that are orderly wound-down should have contractual arrangements in place to ensure that the proceeds of the reserve assets are paid to the holders of asset-referenced tokens. ### (40) issuers of asset-referenced tokens should provide the holders of asset-referenced tokens with redemption rights. issuers should make available to the holders of asset-referenced tokens sufficiently detailed and easily understandable information about the procedures governing the redemption.


### (54) some firms subject to union legislation on financial services should be allowed to provide crypto-asset services without prior authorisation. credit institutions authorised under directive 2013/36/eu should not need another authorisation to provide crypto-asset services. investment firms authorised under directive 2014/65/eu to provide one or several investment services as defined under that directive similar to the crypto-asset services they intend to provide should also be allowed to provide crypto-asset services across the union without another authorisation. ### (54) some firms , including operators of financial market infrastructures , subject to union legislation on financial services should be allowed to provide crypto-asset services without prior authorisation. credit institutions authorised under directive 2013/36/eu should not need another authorisation to provide crypto-asset services. central counterparties authorised under of regulation 648/2012/eu , central securities depositories authorised under of regulation 909/2014/eu and regulated markets authorized under directive 2014/65/eu should not need another authorisation to provide crypto-asset services. investment firms authorised under directive 2014/65/eu to provide one or several investment services as defined under that directive similar to the crypto-asset services they intend to provide should also be allowed to provide crypto-asset services across the union without another authorisation.


### (67) the eba should establish a college of supervisors for issuers of significant asset-referenced tokens. those issuers are usually at the centre of a network of entities that ensure the issuance of such crypto-assets , their transfer and their distribution to holders. the members of the college of supervisors should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure , among others , the custody of the reserve assets , the operation of trading platforms for crypto-assets where the significant asset-referenced tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant asset-referenced tokens on behalf of holders. the college of supervisors should facilitate the cooperation and exchange of information among its members and should issue non-binding opinions on supervisory measures or changes in authorisation concerning the issuers of significant asset-referenced tokens or on the relevant entities providing services or activities in relation to the significant asset-referenced tokens. ### (67) the esma should establish a college of supervisors for issuers of significant asset-referenced tokens. those issuers are usually at the centre of a network of entities that ensure the issuance of such crypto-assets , their transfer and their distribution to holders. the members of the college of supervisors should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure , among others , the custody of the reserve assets , the operation of trading platforms for crypto-assets where the significant asset-referenced tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant asset-referenced tokens on behalf of holders. the college of supervisors should facilitate the cooperation and exchange of information among its members and should issue non-binding opinions on supervisory measures or changes in authorisation concerning the issuers of significant asset-referenced tokens or on the relevant entities providing services or activities in relation to the significant asset-referenced tokens. in case the issuer of a significant asset-referenced token is also the issue of a significant e-money token , there should only be a single college per entity. this will ensure that decisions are made holistically with all relevant information available.


### (68) competent authorities in charge of supervision under directive 2009/110/ec should supervise issuers of e-money tokens. however , given the potential widespread use of significant e-money tokens as a means of payment and the risks they can pose to financial stability , a dual supervision by both competent authorities and the eba of issuers of significant e-money tokens is necessary. the eba should supervise the compliance by issuers of significant e-money tokens with the specific additional requirements set out in this regulation for significant e-money tokens. ### (68) competent authorities in charge of supervision under directive 2009/110/ec should supervise issuers of e-money tokens. however , given the potential widespread use of significant e-money tokens as a means of payment and the risks they can pose to financial stability , a dual supervision by both competent authorities and the esma of issuers of significant e-money tokens is necessary. the esma should supervise the compliance by issuers of significant e-money tokens with the specific additional requirements set out in this regulation for significant e-money tokens.


### (69) the eba should establish a college of supervisors for issuers of significant e-money tokens. issuers of significant e-money tokens are usually at the centre of a network of entities which ensure the issuance of such crypto-assets , their transfer and their distribution to holders. the members of the college of supervisors for issuers of significant e-money tokens should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure , among others , the operation of trading platforms for crypto-assets where the significant e-money tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant e-money tokens on behalf of holders. the college of supervisors for issuers of significant e-money tokens should facilitate the cooperation and exchange of information among its members and should issue non-binding opinions on changes in authorisation or supervisory measures concerning the issuers of significant e-money tokens or on the relevant entities providing services or activities in relation to those significant e-money tokens. ### (69) the esma should establish a college of supervisors for issuers of significant e-money tokens. issuers of significant e-money tokens are usually at the centre of a network of entities which ensure the issuance of such crypto-assets , their transfer and their distribution to holders. the members of the college of supervisors for issuers of significant e-money tokens should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure , among others , the operation of trading platforms for crypto-assets where the significant e-money tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant e-money tokens on behalf of holders. the college of supervisors for issuers of significant e-money tokens should facilitate the cooperation and exchange of information among its members and should issue non-binding opinions on changes in authorisation or supervisory measures concerning the issuers of significant e-money tokens or on the relevant entities providing services or activities in relation to those significant e-money tokens. in case the issuer of a significant e-money token is also the issue of a significant asset-referenced token , there should only be a single college per entity. this will ensure that decisions are made holistically with all relevant information available.


### (70) to supervise the issuers of significant asset-referenced tokens , the eba should have the powers , among others , to carry out on-site inspections , take supervisory measures and impose fines. the eba should also have powers to supervise the compliance of issuers of significant e-money tokens with additional requirements set out in this regulation. ### (70) to supervise the issuers of significant asset-referenced tokens , the esma should have the powers , among others , to carry out on-site inspections , take supervisory measures and impose fines. the esma should also have powers to supervise the compliance of issuers of significant e-money tokens with additional requirements set out in this regulation.


### (71) the eba should charge fees on issuers of significant asset-referenced tokens and issuers of significant e-money tokens to cover its costs , including overheads. for issuers of significant asset-referenced tokens , the fee should be proportionate to the size of their reserve assets. for issuers of significant e-money tokens , the fee should be proportionate to the amount of funds received in exchange for the significant e-money tokens. ### (71) the esma should charge fees on issuers of significant asset-referenced tokens and issuers of significant e-money tokens to cover its costs , including overheads. for issuers of significant asset-referenced tokens , the fee should be proportionate to the size of their reserve assets. for issuers of significant e-money tokens , the fee should be proportionate to the amount of funds received in exchange for the significant e-money tokens.


### (72) in order to ensure the uniform application of this regulation , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union (tfeu) should be delegated to the commission in respect of the modifications of the definitions set out in this regulation in order to adapt them to market and technological developments , to specify the criteria and thresholds to determine whether an asset-referenced token or an e-money token should be classified as significant and to specify the type and amount of fees that can be levied by eba for the supervision of issuers of significant asset-referenced tokens or significant e-money tokens. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement of 13 april 2016 on better law-making45 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states' experts , and their experts systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### deleted


### (73) in order to promote the consistent application of this regulation , including adequate protection of investors and consumers across the union , technical standards should be developed. it would be efficient and appropriate to entrust the eba and esma , as bodies with highly specialised expertise , with the development of draft regulatory technical standards which do not involve policy choices , for submission to the commission. ### (73) in order to promote the consistent application of this regulation , including adequate protection of investors and consumers across the union , technical standards should be developed. it would be efficient and appropriate to entrust the eba and esma , as bodies with highly specialised expertise , with the development of draft regulatory technical standards which do not involve policy choices , for submission to the commission. when developing said regulatory technical standards , the eba and esma shall take due account of existing provisions in other pieces of eu financial services legislation in order to minimise the potential for regulatory arbitrage.


### 1. issuers of asset-referenced tokens that invest a part of the reserve assets shall invest those reserve assets only in highly liquid financial instruments with minimal market and credit risk. the investments shall be capable of being liquidated rapidly with minimal adverse price effect. ### 1. issuers of asset-referenced tokens that invest a part of the reserve assets shall invest those reserve assets only in highly liquid financial instruments with minimal market , credit and concentration risk. the investments shall be capable of being liquidated rapidly with minimal adverse price effect.


### eba shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force]. ### esma shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force].


### 1. issuers of asset-referenced tokens shall establish , maintain and implement clear and detailed policies and procedures on the rights granted to holders of asset-referenced tokens , including any direct claim or redemption rights on the issuer of those asset-referenced tokens or on the reserve assets. ### 1. each unit of asset-referenced token created shall be pledged at par value with an official currency unit of an eu member state.


### 1. issuers of asset-referenced tokens shall establish , maintain and implement clear and detailed policies and procedures on the rights granted to holders of asset-referenced tokens , including any direct claim or redemption rights on the issuer of those asset-referenced tokens or on the reserve assets. ### 1. issuers of asset-referenced tokens shall grant holders redemption rights on the reserve assets and shall establish , maintain and implement clear and detailed policies and procedures that outline the redemption of the asset-referenced tokens at market value.


### 2. where holders of asset-referenced tokens are granted rights as referred to in paragraph 1 , issuers of asset-referenced tokens shall establish a policy setting out: ### 2. issuers of asset-referenced tokens shall establish a policy setting out:


### 2. where holders of asset-referenced tokens are granted rights as referred to in paragraph 1 , issuers of asset-referenced tokens shall establish a policy setting out: ### 2. issuers of asset-referenced token shall issue asset-referenced token at par value and on the receipt of funds within the meaning of article 4(25) of directive 2015/2366.


### the conditions , including thresholds , periods and timeframes , for holders of asset-referenced tokens to exercise those rights; ### deleted


### the mechanisms and procedures to ensure the redemption of the asset-referenced tokens , including in stressed market circumstances , in case of an orderly wind-down of the issuer of asset-referenced tokens as referred to in article 42 , or in case of a cessation of activities by such issuer; ### deleted


### the valuation , or the principles of valuation , of the asset-referenced tokens and of the reserve assets when those rights are exercised by the holder of asset-referenced tokens; ### deleted


### the settlement conditions when those rights are exercised; ### deleted


### the fees applied by the issuers of asset-referenced tokens when the holders exercise those rights. ### deleted


### the fees referred to in point (e) shall be proportionate and commensurate with the actual costs incurred by the issuers of asset-referenced tokens. ### deleted


### 3. where issuers of asset-referenced tokens do not grant rights as referred to in paragraph 1 to all the holders of asset-referenced tokens , the detailed policies and procedures shall specify the natural or legal persons that are provided with such rights. the detailed policies and procedures shall also specify the conditions for exercising such rights and the obligations imposed on those persons. ### deleted


### where issuers of asset-referenced tokens do not grant rights as referred to in paragraph 1 to all the holders of asset-referenced tokens , the detailed policies and procedures shall specify the natural or legal persons that are provided with such rights. the detailed policies and procedures shall also specify the conditions for exercising such rights and the obligations imposed on those persons. ### holders of asset-referenced token are entitled to claim redemption at any moment and at par value , of the monetary value of the art held , either in cash or by credit transfer.


### issuers of asset-referenced tokens shall establish and maintain appropriate contractual arrangements with those natural or legal persons who are granted such rights. those contractual arrangements shall precisely set out the roles , responsibilities , rights and obligations of the issuers of asset-referenced tokens and each of those natural or legal persons. a contractual arrangement with cross-jurisdictional implications shall provide for an unambiguous choice of law. ### deleted


### 4. issuers of asset-referenced tokens that do not grant rights as referred to in paragraph 1 to all the holders of such asset-referenced tokens shall put in place mechanisms to ensure the liquidity of the asset-referenced tokens. for that purpose , they shall establish and maintain written agreements with crypto-asset service providers authorised for the crypto-asset service referred to in article 3(1) point (12). the issuer of asset-referenced tokens shall ensure that a sufficient number of crypto-asset service providers are required to post firm quotes at competitive prices on a regular and predictable basis. ### deleted


### issuers of asset-referenced tokens that do not grant rights as referred to in paragraph 1 to all the holders of such asset-referenced tokens shall put in place mechanisms to ensure the liquidity of the asset-referenced tokens. for that purpose , they shall establish and maintain written agreements with crypto-asset service providers authorised for the crypto-asset service referred to in article 3(1) point (12). the issuer of asset-referenced tokens shall ensure that a sufficient number of crypto-asset service providers are required to post firm quotes at competitive prices on a regular and predictable basis. ### redemption may not be subject to a fee. issuers of asset-referenced token shall prominently state the conditions of redemption in the crypto-asset white paper as referred to in article 46.


### where the market value of asset-referenced tokens varies significantly from the value of the reference assets or the reserve assets , the holders of asset-referenced tokens shall have the right to redeem the crypto-assets from the issuer of crypto-assets directly. in that case , any fee applied for such redemption shall be proportionate and commensurate with the actual costs incurred by the issuer of asset-referenced tokens. ### deleted


### the issuer shall establish and maintain contractual arrangements to ensure that the proceeds of the reserve assets are paid to the holders of asset-referenced tokens , where the issuer decides to stop operating or where it has been placed under an orderly wind-down , or when its authorisation has been withdrawn. ### deleted


### 5. the eba shall , in close cooperation with esma , develop draft regulatory technical standards specifying: ### 5. where the issuer of an asset-referenced token does not fulfil legitimate redemption requests from holders of asset-referenced token within 30 days , the holder is entitled to claim redemption to any following third party entities that has been in contractual arrangements with issuers of asset-referenced tokens:


### 5. the eba shall , in close cooperation with esma , develop draft regulatory technical standards specifying: ### 5. the esma shall develop draft regulatory technical standards specifying:


### the obligations imposed on the crypto-asset service providers ensuring the liquidity of asset-referenced tokens as set out in the first subparagraph of paragraph 4; ### entities ensuring the safeguarding of funds received by issuers of asset-referenced token in exchange for asset referenced token in accordance with article 7 of directive2009/110/ec;


### the variations of value triggering a direct right of redemption from the issuer of asset-referenced tokens as set out in the second subparagraph of paragraph 4 , and the conditions for exercising such a right. ### any natural or legal persons in charge of distributing e-money tokens on behalf of issuers of e-money tokens.


### eba shall submit those draft regulatory technical standards to the commission by ... [please insert 12 months after the date of entry into force of this regulation]. ### deleted


### eba shall submit those draft regulatory technical standards to the commission by ... [please insert 12 months after the date of entry into force of this regulation]. ### esma shall submit those draft regulatory technical standards to the commission by ... [please insert 12 months after the date of entry into force of this regulation].


### power is delegated to the commission to adopt the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with articles 10 to 14 of regulation (eu) no 1093/2010. ### deleted


### the eba , in close cooperation with esma , shall develop draft regulatory technical standards to establish an exhaustive list of information that is necessary to carry out the assessment referred to in article 37(4) , first subparagraph and that shall be provided to the competent authorities at the time of the notification referred to in paragraph 37(1). the information required shall be relevant for a prudential assessment , be proportionate and be adapted to the nature of the persons and the intended acquisition referred to in article 37(1). ### esma shall develop draft regulatory technical standards to establish an exhaustive list of information that is necessary to carry out the assessment referred to in article 37(4) , first subparagraph and that shall be provided to the competent authorities at the time of the notification referred to in paragraph 37(1). the information required shall be relevant for a prudential assessment , be proportionate and be adapted to the nature of the persons and the intended acquisition referred to in article 37(1).


### the eba shall submit those draft regulatory technical standards to the commission by [please insert 12 months after the entry into force of this regulation]. ### the esma shall submit those draft regulatory technical standards to the commission by [please insert 12 months after the entry into force of this regulation].


### 1. the eba shall classify asset-referenced tokens as significant asset-referenced tokens on the basis of the following criteria , as specified in accordance with paragraph 6 and where at least three of the following criteria are met: ### 1. esma shall classify asset-referenced tokens as significant asset-referenced tokens on the basis of the following criteria , as specified in accordance with paragraph 6 and where at least three of the following criteria are met:


### the significance of the cross-border activities of the issuer of the asset-referenced tokens , including the number of member states where the asset-referenced tokens are used , the use of the asset-referenced tokens for cross-border payments and remittances and the number of member states where the third-party entities referred to in article 30(5) , point (h) , are established; ### deleted


### 2. competent authorities that authorised an issuer of asset-referenced tokens in accordance with article 19 shall provide the eba with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis. ### 2. competent authorities that authorised an issuer of asset-referenced tokens in accordance with article 19 shall provide the esma with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis.


### 3. where the eba is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1 , as specified in accordance with paragraph 6 , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home member state. the eba shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### 3. where the esma is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1 , as specified in accordance with paragraph 6 , the esma shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home member state. the esma shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof. ### 4. the esma shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.


### 5. the supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to the eba one month after the notification of the decision referred to in paragraph 4. ### 5. the supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to the esma one month after the notification of the decision referred to in paragraph 4.


### the eba and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences. ### the esma and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences.


### i) the threshold for the customer base shall not be lower than two million of natural or legal persons; ### i) the threshold for the customer base shall be twenty million of natural or legal persons;


### ii) the threshold for the value of the asset-referenced token issued or , where applicable , the market capitalisation of such an asset-referenced token shall not be lower than eur 1 billion; ### ii) the threshold for the value of the asset-referenced token issued or , where applicable , the market capitalisation of such an asset-referenced token shall be eur 10 billion;


### ii) the threshold for the value of the asset-referenced token issued or , where applicable , the market capitalisation of such an asset-referenced token shall not be lower than eur 1 billion; ### ii) the threshold for the value of the asset-referenced token issued or , where applicable , the market capitalisation of such an asset-referenced token shall not be lower than eur 1.2 billion;


### iii) the threshold for the number and value of transactions in those asset-referenced tokens shall not be lower than 500 000 transactions per day or eur 100 million per day respectively; ### iii) the threshold for the number and value of transactions in those asset-referenced tokens shall be 5 million transactions per day or eur 1 billion per day respectively;


### iii) the threshold for the number and value of transactions in those asset-referenced tokens shall not be lower than 500 000 transactions per day or eur 100 million per day respectively; ### iii) the threshold for the number and value of transactions in those asset-referenced tokens shall not be lower than 550 000 transactions per day or eur 110 million per day respectively;


### iv) the threshold for the size of the reserve assets as referred to in point (d) shall not be lower than eur 1 billion; ### iv) the threshold for the size of the reserve assets as referred to in point (d) shall be eur 10 billion;


### iv) the threshold for the size of the reserve assets as referred to in point (d) shall not be lower than eur 1 billion; ### iv) the threshold for the size of the reserve assets as referred to in point (d) shall not be lower than eur 1.2 billion;


### v) the threshold for the number of member states where the asset-referenced tokens are used , including for cross-border payments and remittances , or where the third parties as referred to in article 30(5) , point (h) , are established shall not be lower than seven; ### deleted


### v) the threshold for the number of member states where the asset-referenced tokens are used , including for cross-border payments and remittances , or where the third parties as referred to in article 30(5) , point (h) , are established shall not be lower than seven; ### v) the threshold for the number of member states where the asset-referenced tokens are used , including for cross-border payments and remittances , or where the third parties as referred to in article 30(5) , point (h) , are established shall be five;


### the content and format of information provided by competent authorities to eba under paragraph 2. ### the content and format of information provided by competent authorities to esma under paragraph 2.


### the procedure and timeframe for the decisions taken by the eba under paragraphs 3 to 5. ### the procedure and timeframe for the decisions taken by the esma under paragraphs 3 to 5.


### 1. applicant issuers of asset-referenced tokens that apply for an authorisation as referred to in article 16 , may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. in that case , the competent authority shall immediately notify the request from the prospective issuer to the eba. ### 1. applicant issuers of asset-referenced tokens that apply for an authorisation as referred to in article 16 , may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. in that case , the competent authority shall immediately notify the request from the prospective issuer to the esma.


### 2. where , on the basis of the programme of operation , the eba is of the opinion that asset-referenced tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home member state. ### 2. where , on the basis of the programme of operation , the esma is of the opinion that asset-referenced tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the esma shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home member state.


### the eba shall give competent authority of the applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### the esma shall give competent authority of the applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 3. where , on the basis of the programme of operation , the eba is of the opinion that asset-referenced tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home member state. ### 3. where , on the basis of the programme of operation , the esma is of the opinion that asset-referenced tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the esma shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home member state.


### the eba shall give the applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### the esma shall give the applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof. ### 4. the esma shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.


### 5. where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4 , the supervisory responsibilities shall be transferred to the eba on the date of the decision by which the competent authority grants the authorisation referred to in article 19(1). ### 5. where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4 , the supervisory responsibilities shall be transferred to the esma on the date of the decision by which the competent authority grants the authorisation referred to in article 19(1).


### 3. issuers of significant asset-referenced tokens shall assess and monitor the liquidity needs to meet redemption requests or the exercise of rights , as referred to in article 34 , by holders of asset-referenced tokens. for that purpose , issuers of significant asset-referenced tokens shall establish , maintain and implement a liquidity management policy and procedures. that policy and those procedures shall ensure that the reserve assets have a resilient liquidity profile that enable issuer of significant asset-referenced tokens to continue operating normally , including under liquidity stressed scenarios. ### 3. issuers of significant asset-referenced tokens shall assess and monitor the liquidity needs to meet redemption requests or the exercise of rights , as referred to in article 34 , by holders of asset-referenced tokens. issuers of significant asset-referenced tokens shall also conduct liquidity stress testing , on a regular basis , and depending on the outcome of such tests , the eba may decide to strengthen liquidity risk requirements. where an issuer of significant asset-referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto asset services , these stress tests shall cover all of these activities in a comprehensive and holistic manner.’


### 4. the percentage referred to in article 31(1) , point (b) , shall be set at 3% of the average amount of the reserve assets for issuers of significant asset-referenced tokens. ### 4. the minimum own funds requirements referred to in article 31(1) shall be multiplied with a factor of 1.5. the percentage of the reserve assets referred to in article 31(1) , point (b) , shall be calculated over a period of 12 months.


### 4. the percentage referred to in article 31(1) , point (b) , shall be set at 3% of the average amount of the reserve assets for issuers of significant asset-referenced tokens. ### 4. the percentage referred to in article 31(1) , point (b) , shall be set at 3% of the average amount of the reserve assets for issuers of significant asset-referenced tokens. in addition , issuers of significant asset-referenced tokens shall conduct , on a regular basis , stress testing that shall take into account severe but plausible financial (such as interest rate shocks) stress scenarios and non-financial (such as operational risk) stress scenarios. where an issuer of significant asset referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto-asset services , these stress tests shall cover all of these activities in a comprehensive and holistic manner. based on the outcome of such stress tests , the eba where relevant , may impose additional own funds requirements on top of the 3% requirement. moreover , issuers of significant asset-referenced tokens shall also conduct liquidity stress testing , on a regular basis , and depending on the outcome of such tests , the eba may decide to strengthen liquidity risk requirements.


### 6. the eba , in close cooperation with esma , shall develop draft regulatory technical standards specifying: ### 6. the esma shall develop draft regulatory technical standards specifying:


### the eba shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force]. ### the esma shall submit those draft regulatory technical standards to the commission by [please insert date 12 months after entry into force].


### 7. the crypto-asset white paper shall be drawn up in at least one of the official languages of the home member state or in a language customary in the sphere of international finance. ### 7. the crypto-asset white paper shall be drawn up in at least one of the official languages of the home member state or in english.


### 1. the eba shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , and where at least three of those criteria are met. ### 1. the esma shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , and where at least three of those criteria are met.


### 2. competent authorities of the issuer’s home member state shall provide the eba with information on the criteria referred to in article 39(1) of this article and specified in accordance with article 39(6) on at least a yearly basis. ### 2. competent authorities of the issuer’s home member state shall provide the esma with information on the criteria referred to in article 39(1) of this article and specified in accordance with article 39(6) on at least a yearly basis.


### 3. where the eba is of the opinion that e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e-money tokens and the competent authority of the issuer’s home member state. the eba shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### 3. where the esma is of the opinion that e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the esma shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e-money tokens and the competent authority of the issuer’s home member state. the esma shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such e-money tokens and their competent authorities thereof. ### 4. the esma shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such e-money tokens and their competent authorities thereof.


### 1. an issuer of e-money tokens , authorised as a credit institution or as an ‘electronic money institution’ as defined in article 2(1) of directive 2009/110/ec or applying for such authorisation , may indicate that they wish to classify their e-money tokens as significant e-money tokens. in that case , the competent authority shall immediately notify the request from the issuer or applicant issuer to eba. ### 1. an issuer of e-money tokens , authorised as a credit institution or as an ‘electronic money institution’ as defined in article 2(1) of directive 2009/110/ec or applying for such authorisation , may indicate that they wish to classify their e-money tokens as significant e-money tokens. in that case , the competent authority shall immediately notify the request from the issuer or applicant issuer to esma.


### 2. where , on the basis of the programme of operation , the eba is of the opinion that the e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the issuer or applicant issuer’s home member state. ### 2. where , on the basis of the programme of operation , the esma is of the opinion that the e-money tokens meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the esma shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the issuer or applicant issuer’s home member state.


### the eba shall give competent authority of the issuer or applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### the esma shall give competent authority of the issuer or applicant issuer’s home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 3. where , on the basis of the programme of operation , the eba is of the opinion that the e-money tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the eba shall prepare a draft decision to that effect and notify that draft decision to the issuer or applicant issuer and the competent authority of the issuer or applicant issuer’s home member state. ### 3. where , on the basis of the programme of operation , the esma is of the opinion that the e-money tokens do not meet the criteria referred to in article 39(1) , as specified in accordance with article 39(6) , the esma shall prepare a draft decision to that effect and notify that draft decision to the issuer or applicant issuer and the competent authority of the issuer or applicant issuer’s home member state.


### the eba shall give the issuer or applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the eba shall duly consider those observations and comments. ### the esma shall give the issuer or applicant issuer and the competent authority of its home member state the opportunity to provide observations and comments in writing prior the adoption of its final decision. the esma shall duly consider those observations and comments.


### 4. the eba shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the issuers or applicant issuer of such e-money tokens and their competent authorities thereof. the decision shall be immediately notified to the issuer or applicant issuer of e-money tokens and to the competent authority of its home member state. ### 4. the esma shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the issuers or applicant issuer of such e-money tokens and their competent authorities thereof. the decision shall be immediately notified to the issuer or applicant issuer of e-money tokens and to the competent authority of its home member state.


### article 41 , paragraphs 1 , 2 , and 3 of this regulation; ### article 41 , paragraphs 1 , 2 , 3 and 4 of this regulation;


### 1. competent authorities shall , within 25 working days of receipt of the application referred to in article 54(1) , assess whether that application is complete by checking that the information listed in article 54(2) has been submitted. where the application is not complete , the authorities shall set a deadline by which the applicant crypto-asset service providers are to provide the missing information. ### 1. competent authorities shall , within 15 working days of receipt of the application referred to in article 54(1) , assess whether that application is complete by checking that the information listed in article 54(2) has been submitted. where the application is not complete , the authorities shall set a deadline by which the applicant crypto-asset service providers are to provide the missing information.


### 5. competent authorities shall , within three months from the date of receipt of a complete application , assess whether the applicant crypto-asset service provider complies with the requirements of this title and shall adopt a fully reasoned decision granting or refusing an authorisation as a crypto-asset service provider. that assessment shall take into account the nature , scale and complexity of the crypto-asset services that the applicant crypto-asset service provider intends to provide. ### 5. competent authorities shall , within two months from the date of receipt of a complete application , assess whether the applicant crypto-asset service provider complies with the requirements of this title and shall adopt a fully reasoned decision granting or refusing an authorisation as a crypto-asset service provider. that assessment shall take into account the nature , scale and complexity of the crypto-asset services that the applicant crypto-asset service provider intends to provide.


### 3. crypto-asset service providers shall , promptly place any client’s funds , with a central bank or a credit institution. ### 3. crypto-asset service providers shall , promptly place any client’s funds , with a credit institution or , where the relevant eligibility criteria and conditions for opening an account are met , a central bank.


### crypto-asset service providers shall take all necessary steps to ensure that the clients’ funds held with a central bank or a credit institution are held in an account or accounts separately identifiable from any accounts used to hold funds belonging to the crypto-asset service provider. ### crypto-asset service providers shall take all necessary steps to ensure that the clients’ funds held with a credit institution or , where the relevant eligibility criteria and conditions for opening an account are met , with a central bank , are held in an account or accounts separately identifiable from any accounts used to hold funds belonging to the crypto-asset service provider.


### 8. crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall be liable to their clients for loss of crypto-assets as a resulting from a malfunction or hacks up to the market value of the crypto-assets lost. ### 8. crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall not restrict the liability to their clients for loss of crypto-assets resulting from wilful misconduct or gross negligence in performing their duties and obligations under their respective agreements , including losses resulting from a malfunction or hacks.


### 2. these operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home member states or in another language that is customary in the sphere of finance. those operating rules shall be made public on the website of the crypto-asset service provider concerned. ### 2. these operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home member states or in english. those operating rules shall be made public on the website of the crypto-asset service provider concerned.


### 6. by derogation to paragraph 5 , the competent authorities may refer to the eba in situations where a request for cooperation , in particular to exchange information , concerning an issuer of asset-referenced tokens or e-money tokens , or crypto-asset services related to asset-referenced tokens or e-money tokens , has been rejected or has not been acted upon within a reasonable time. ### 6. by derogation to paragraph 5 , the competent authorities may refer to the esma in situations where a request for cooperation , in particular to exchange information , concerning an issuer of asset-referenced tokens or e-money tokens , or crypto-asset services related to asset-referenced tokens or e-money tokens , has been rejected or has not been acted upon within a reasonable time.


### 3 supervisory responsibilities of eba on issuers of significant asset-referenced tokens and significant e-money tokens and colleges of supervisors ### 3 supervisory responsibilities of esma on issuers of significant asset-referenced tokens and significant e-money tokens and colleges of supervisors


### supervisory responsibilities of eba on issuers of significant asset-referenced tokens and issuers of significant e-money tokens ### supervisory responsibilities of esma on issuers of significant asset-referenced tokens and issuers of significant e-money tokens


### 1. where an asset-referenced token has been classified as significant in accordance with article 39 or article 40 , the issuer of such asset-referenced tokens shall carry out their activities under the supervision of the eba. ### 1. where an asset-referenced token has been classified as significant in accordance with article 39 or article 40 , the issuer of such asset-referenced tokens shall carry out their activities under the supervision of the esma.


### the eba shall exercise the powers of competent authorities conferred by articles 21 , 37 and 38 as regards issuers of significant asset-referenced tokens. ### the esma shall exercise the powers of competent authorities conferred by articles 21 , 37 and 38 as regards issuers of significant asset-referenced tokens.


### 3. where an asset-referenced token has been classified as significant in accordance with article 39 , the eba shall conduct a supervisory reassessment to ensure that issuers of significant asset-referenced tokens comply with the requirements under title iii. ### 3. where an asset-referenced token has been classified as significant in accordance with article 39 , the esma shall conduct a supervisory reassessment to ensure that issuers of significant asset-referenced tokens comply with the requirements under title iii.


### 4. where an e-money token has been classified as significant in accordance with articles 50 or 51 , the eba shall be responsible of the compliance of the issuer of such asset-significant e-money tokens with the requirements laid down in article 52. ### 4. where an e-money token has been classified as significant in accordance with articles 50 or 51 , the esma shall be responsible of the compliance of the issuer of such asset-significant e-money tokens with the requirements laid down in article 52.


### 1. within 30 calendar days of a decision to classify an asset-referenced token as significant , the eba shall establish , manage and chair a consultative supervisory college for each issuer of significant asset-referenced tokens to facilitate the exercise of its supervisory tasks under this regulation. ### 1. within 30 calendar days of a decision to classify an asset-referenced token as significant , the esma shall establish , manage and chair a consultative supervisory college for each issuer of significant asset-referenced tokens to facilitate the exercise of its supervisory tasks under this regulation.


### the eba , as the chair of the college; ### the esma , as the chair of the college;


### esma; ### eba;


### relevant supervisory authorities of third countries with which the eba has concluded an administrative agreement in accordance with article 108. ### relevant supervisory authorities of third countries with which the esma has concluded an administrative agreement in accordance with article 108.


### the format and scope of the information to be provided by the eba to the college members , especially with regard to the information to the risk assessment as referred to in article 30(9); ### the format and scope of the information to be provided by the esma to the college members , especially with regard to the information to the risk assessment as referred to in article 30(9);


### the agreement may also determine tasks to be entrusted to the eba or another member of the college. ### the agreement may also determine tasks to be entrusted to the esma or another member of the college.


### 6. in order to ensure the consistent and coherent functioning of colleges , the eba shall , in cooperation with esma and the european system of central banks , develop draft regulatory standards specifying the conditions under which the entities referred to in points (d) to (h) of paragraph 2 are to be considered as the most relevant and the details of the practical arrangements referred to in paragraph 5. ### 6. in order to ensure the consistent and coherent functioning of colleges , the esma shall , in cooperation with eba and the european system of central banks , develop draft regulatory standards specifying the conditions under which the entities referred to in points (d) to (h) of paragraph 2 are to be considered as the most relevant and the details of the practical arrangements referred to in paragraph 5.


### the eba shall submit those draft regulatory standards to the commission by [please insert date 12 months after the entry into force]. ### the esma shall submit those draft regulatory standards to the commission by [please insert date 12 months after the entry into force].


### any delegation of supervisory tasks from the eba to a competent authority pursuant to article 120; ### any delegation of supervisory tasks from the esma to a competent authority pursuant to article 120;


### 2. where the college issues an opinion accordance with paragraph 1 , at the request of any member of the college and upon adoption by a majority of the college in accordance with paragraph 4 , the opinion may include any recommendations aimed at addressing shortcomings of the envisaged action or measure envisaged by the eba or the competent authorities. ### 2. where the college issues an opinion accordance with paragraph 1 , at the request of any member of the college and upon adoption by a majority of the college in accordance with paragraph 4 , the opinion may include any recommendations aimed at addressing shortcomings of the envisaged action or measure envisaged by the esma or the competent authorities.