The European Banking Authority (EBA) published on Thursday the final draft technical standards on prudential matters for firms to comply with under the Markets in Crypto Assets (MiCA) legislation.
The wide-ranging package of bespoke rules for the crypto sector, MiCA was passed last year. The legislation comes with rules for crypto companies and stablecoin issuers.
The EBA’s standards set out a criteria for stress testing programmes and spells out the liquidity requirements of reserve assets as well as a recovery plan that issuers need to develop and more.
“Issuers of asset referenced tokens are required to conduct stress testing based on plausible financial stress scenarios, and competent authorities will be able to increase the amount of own funds requirements of an issuer of asset-referenced tokens having regard to the risk outlook and stress testing results,” the recently published package read.
The draft technical standards were developed in close cooperation with bloc of 27 nations other bodies the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB).