European authorities issue consultation paper on cryptoasset guidelines

According to Cointelegraph, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly released a consultation paper including two drafts on October 20. These drafts focus on assessing the suitability of board members and shareholders or members holding qualifying stakes in Asset Token Issuers (ARTs) and Crypto Asset Service Providers (CASPs).

The proposed joint guidelines aim to provide regulators with a common approach to assessing the suitability of shareholders or members, whether direct or indirect, who hold qualifying interests in ART or CASP issuers. This includes licensing the issuance of ART and CASP and conducting prudential assessments of potential acquisitions. In addition, the Guidelines provide uniform criteria for evaluating the knowledge, experience, integrity and ability of members of the management staff of ART and CASP issuing companies to devote sufficient time to fulfilling their responsibilities.

These Guidelines are designed to promote and protect the integrity of the cryptocurrency market and associated services, as well as instill confidence by ensuring the suitability of both members of the governing body of ART and CASP issuers and individuals seeking to hold or acquire eligible stakes in them. . The consultation period will remain open until January 22, 2024