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  • Writer's pictureадв. Светослав Григоров

Significant asset-referenced tokens

Updated: Jun 13, 2023

The classification of asset-referenced tokens as significant is based on at least three of the following criteria:

- the number of clients of the persons promoting the tokens, the shareholders of the issuer, or third parties;

- the value of the issued tokens;

- the number and value of transactions;

- the size of the asset reserve;

- cross-border activities;

- the interconnection with the financial system.

The authorities that issued the issuer's license shall, at least once a year, provide information to the EBA regarding the criteria for significant tokens. When answering them, they prepare a draft decision, which they send to the issuer. He can submit remarks and comments. The EBA issues its decision within 3 months after the notification. A month later, the EBA takes over supervisory powers.

The Commission adopts additional criteria for classifying tokens as significant, under the following conditions:

- the customer base exceeds 2 million people;

- the value of the tokens is more than 1 billion euros;

- the threshold for the number and value of transactions is at least 500,000 transactions or 100 million euros per day;

- the reserve assets must be at least 1 billion euros;

- tokens are used in at least seven EU member states;

- tokens and their issuers are connected to the financial system;

- the content of information and procedures.

Voluntary classification of tokens as significant asset-referenced tokens

When applying for a license, it may be indicated that the tokens are to be classified as significant. Issuers are verified to meet at least three of the criteria to be classified.

The EBA notifies token issuers of its decision within 3 months.

Obligations of issuers of significant tokens

Issuers implement a remuneration policy by prudently managing risk. Ensure that tokens can be held in the custody of crypto-asset service providers. Maintain liquidity to fulfill token holders' redemption requests.

Regarding significant asset-referenced tokens please contact us by going to contacts.

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