A set of crypto guidelines was released for members and shareholders of crypto-asset service providers and other asset-referenced tokens.
European regulators and institutions have been leading rules for crypto regulation since the advent of the MiCA Act. Recently, two EU regulators jointly released a document with minute crypto guidelines. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) prepared it in partnership. The document is a detailed consultation paper.
The guidelines will have the necessary criteria for management body shareholders and members of crypto firms. These crypto firms mainly include crypto-asset service providers (CASPs) and asset-referenced tokens (ARTs). Thereafter, the guidelines will enable regulators to assess the suitability of the shareholders in the said firms.
The paper created a set of standard criteria for testing the members and stakeholders of such institutions. It includes testing their expertise, knowledge, integrity, and other factors. In reality, the rules’ main aim is to instill faith in the crypto ecosystem by allowing only qualified stakeholders.
“Members of the management body of an issuer of asset referenced tokens (ARTs) and of a crypto-asset service provider (CASP) must be of sufficiently good repute and possess individually and collectively appropriate knowledge, skills and experience and be capable of committing sufficient time to their duties,” said the summary of the guidelines.
Hereon, the appointment of members of management bodies of the above crypto firms could get more stringent. On a positive note, the stakeholders and shareholders of such firms could work with definite experience and uprightness. Since the consultations of the crypto law in Europe are open till 2024, several new such rules may continue cropping up.
Europe has also seen many of its regulators working in cooperation on crypto, which is a good sign. Meanwhile, a few other countries have mainly faced the issue of legislators and regulators having opposing views on crypto.