EBA final report — Guidelines on recovery plans under MiCAR

EBA final report — Guidelines on recovery plans under MiCAR EBA/GL/2024/07 13 June 2024 Final Report Guidelines on recovery plans under Articles 46 and 55 of Regulation (EU) 2023/1114 FINAL REPORT ON GUIDELINES ON RECOVERY PLANS UNDER ARTICLES 46 AND 55 OF THE REGULATION (EU) 2023/1114 Contents Final Report 1 1.Executive Summary 3 2.Background and rationale 4 3.Guidelines 7 Guidelines 8 1.Compliance and reporting obligations 9 2.Subject matter, scope and definitions 10 3.Implementation 12 5.Accompanying documents 29 2 FINAL REPORT ON GUIDELINES ON RECOVERY PLANS UNDER ARTICLES 46 AND 55 OF THE REGULATION (EU) 2023/1114 1.

Executive Summary Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR) establishes a holistic approach for the regulation of crypto-asset issuance and crypto-asset service provision in the EU.

Articles 46 and 55 of MiCAR set out an obligation for issuers of asset-reference tokens (ARTs) and issuers of e- money tokens (EMTs) to develop and maintain a recovery plan providing for measures to be taken by the issuer to restore compliance with the requirements applicable to the reserve of assets in cases where the issuer fails to comply with those requirements.

This requirement is imposed on all issuers, regardless of whether the tokens are classified as significant.

These guidelines specify the format of the recovery plan and the information to be provided therein.

The guidelines set out that recovery plans should comprise four elements: a summary of the key elements of the recovery plan, the information on governance, the description of the applicable recovery options, and a communication and disclosure plan.

As part of the information on governance, issuers should include in the recovery plan a minimum set of categories of recovery plan indicators.

Among these categories, issuers should identify and calibrate the most relevant recovery plan indicators based on their specific risk profile and operating environment.

When assessing what type of indicators will be included in the recovery plan, issuers should consider carefully the type of events that may lead to a breach of the regulatory requirements applicable to the reserve of assets.

Recovery plan indicators should be of both quantitative and qualitative nature.

Moreover, all issuers should include a de-pegging risk indicator, aimed to keep track of the alignment between the market price of the token and the market value of the referenced asset(s).

The guidelines also provide guidance on the steps to take in case of breaches of recovery plan indicator thresholds.

When drafting the recovery plan, each issuer should identify the most approp EBA · guidelines_final_report · final_report_guideline

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