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  • Writer's pictureадв. Светослав Григоров

Electronic money tokens

Updated: Jun 13, 2023

Authorisation

To be offered in the EU, electronic money tokens require the issuer to be:

- licensed credit institution or electronic money institution;

- met the requirements of Directive 2009/110/EC;

- published a white paper on the crypto-asset;

These requirements do not apply to e-money tokens held and distributed by qualified investors if, in a 12-month period, the daily price of the tokens does not exceed EUR 5,000,000.


Electronic money tokens issuance and redemption

Holders of electronic money receive a right of claim against the issuer. At the request of the holders, the value of the electronic money is paid at the nominal value. Redemption terms are set out in the white paper, including fees payable.

In the case of payment delayed by no more than 30 days, the holders may request that the obligation be fulfilled by the persons providing protection of funds or the legal entities.


Prohibition of accrual of interest

Issuers/providers do not provide holders with interest or other benefits for the holding period.


Content and form of the crypto-asset white paper

Before offering e-money tokens or admitting them to trading, it is necessary to publish a white paper about the crypto-asset on its website. Contains the following comprehensible information:

  • Description of the issuer, its project, and the main participants in the project;

  • The rights and obligations, the right of redemption, the procedures and conditions for their exercise;

  • Token disposal technologies and standards;

  • Issuer and technology risks;

  • Disclosure Items.

The summary of the crypto-assets white paper states the possibility for holders to sell the tokens at any time, as well as the conditions for doing so.

The white paper shall be in machine-readable formats, shall be dated, and shall be prepared in at least one of the official languages of the Member State.

The issuer shall notify the competent authority of the draft white paper and marketing communications, as well as of any changes made, at least 20 days prior to publication.


Responsibility for the information in the white paper

In the event of a violation by the issuer of the provisions concerning the white paper, the holder may file a claim for damages.


Marketing communications

Meet the following requirements:

- clearly recognizable;

- the information is objective, clear, and non-misleading;

- the information corresponds to that mentioned in the white paper;

- indicate the website where the white paper is published.

- it is emphasized that the holders can at any time request the redemption of the tokens from the issuer at nominal value.


Investment of received funds

Funds received by issuers in exchange for e-money tokens and invested in low-risk assets are invested in assets denominated in the currency to which the e-money token is pegged.


Regarding e-money tokens, please contact us by going to contacts.

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