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  • Writer's pictureадв. Светослав Григоров

Authorisation for asset-referenced tokens

Updated: Jun 9, 2023

An authorisation to publicly offer asset-referenced tokens (stablecoins) in the European Union and to apply for their license to trade on a platform is granted only to legal entities established in the EU.

Authorisation is not required when:

- during 12 months, the average amount of tokens in circulation does not exceed EUR 5 000 000;

- the public offering of tokens is intended only for and can only be held by qualified investors.

It is not necessary to issue authorisation to credit institutions.

Issuers prepare a white paper for the crypto-asset and submit it for approval to the competent authority of their home Member State.


The issued authorisation is valid for the entire European Union and the issuer can offer the tokens in all Member States. The same goes for the approved white paper.


Application for authorisation for asset-referenced tokens

Asset-referenced token issuers shall apply for authorisation from the competent authority of their home Member State. It contains the following information about the issuer:

- address;

- articles of association;

- a program of operations, business model;

- a legal opinion that asset-referenced tokens do not meet the conditions to be considered financial instruments, electronic money, deposits, or structured deposits;

- governance arrangements;

- the identity of the members of the management body;

- proof that the persons from the management body are of good repute and possess the appropriate knowledge and experience to manage;

- proof that the natural persons who directly or indirectly own more than 20% of the share capital or voting rights, or exercise control over the specified applicant issuer, are of good repute and competence.

- crypto-asset white paper;

- management policies and procedures;

- contractual agreements with third parties;

- the business continuity policy;

- internal control mechanisms and risk management procedures;

- the procedures and systems to safeguard the security, including cyber security, integrity, and confidentiality of information;

- complaint handling procedures.


The European Banking Authority develops technical standard forms, templates, and procedures for submitting a license application.


Assessment of the authorisation application

The competent authorities who received the application verify its completeness, as well as that of the white paper for the crypto-asset, within 20 working days. In case of missing information, they give instructions for completing it within a certain period.

A draft decision to issue a license is issued within 3 months or they refuse. The competent authority sends the information to the EBA, ESMA, and the ECB, and when the currency is different from the euro, to the relevant central bank.

Within 2 months, EBA, ESMA, ECB, or the central bank issue a non-binding opinion to the competent authority.


Issuance of authorisation or refusal

Within 1 month of receiving the non-binding opinion, the competent authorities make a reasoned decision to issue a license or refuse to authorize the issuer. The notification is sent within 5 working days.

Issuing an authorisation signifies approval of the crypto-assets white paper.

Issuance is refused when the issuer does not meet the requirements of the Regulation, the management body poses a threat to the continuity of its activity and the interests of customers, or the business model are not financially stable.

The EBA, ESMA, ECB, or central banks are notified of all authorisations issued.


Revocation of authorisation

Competent authorities shall withdraw a license when the issuer:

- he has not used it up to 6 months after it was issued;

- has not used it for 6 consecutive months;

- obtained the license through illegal means;

- the balance does not meet the conditions for issuance;

- has substantially violated the provisions of the Regulation;

- is bankrupt;

- has given up the license.


Regarding asset-referenced token authorisation, please contact us by going to contacts.

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