210 Amendments of Eero HEINÄLUOMA related to 2020/0265(COD)
Amendment 16 #
Proposal for a regulation
Recital 1
Recital 1
(1) The Commission’s communication on a Digital Finance Strategy32 aims to ensure that the Union’s financial services legislation is fit for the digital age, and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies. The Union has a stated and confirmed policy interest in developing and promoting the uptake of transformative technologies in the financial sector, including blockchain and distributed ledger technology (DLT), provided this transformation is fully in line with the objectives of the EU green deal and based on climate friendly technologies. _________________ 32Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions on a Digital Finance Strategy for EU COM(2020)591.
Amendment 34 #
Proposal for a regulation
Recital 5
Recital 5
(5) A dedicated and harmonised framework is therefore necessary at Union level to provide specific rules for crypto- assets and related activities and services and to clarify the applicable legal framework. Such harmonised framework should also cover services related to crypto-assets where these services are not yet covered by Union legislation on financial services. Such a framework should support innovation and fair competition, while ensuring a high level of consumer protection and market integrity in crypto-asset markets. A clear framework should enable crypto-asset service providers to scale up their business on a cross-border basis and should facilitate their access to banking services to run their activities smoothly. It should also ensure financial stability and address monetary policy risks that could arise from crypto- assets that aim at stabilising their price by referencing a currency, an asset or a basket of such. While increasing consumer protection, market integrity and financial stability through the regulation of offers to the public of crypto-assets or services related to such crypto-assets, a Union framework on markets in crypto-assets should not regulensure thate the underlying technology and should allow for the use of both permissionless and permission-based distributed ledgerre climate friendly and in line with the EU green deal objectives.
Amendment 43 #
Proposal for a regulation
Recital 7
Recital 7
(7) Crypto-assets issuedand central bank money issued based on DLT or in digital form by central banks acting in their monetary authority capacity or by other public authorities should not be subject to the Union framework covering crypto- assets, and neither should services related to crypto- assets and central bank money issued based on DLT or in digital form that are provided by such central banks or other public authorities.’
Amendment 45 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) Pursuant to the fourth indent of art 127(2), of the Treaty on the Functioning of the European Union (TFEU), one of the basic tasks to be carried out through the European System of Central Banks (ESCB) is to promote the smooth operation of payment systems. The ECB may, pursuant to Article 22 of the Statute of the European System of Central Banks and of the European Central Bank(hereinafter the ‘Statute of the ESCB’), make regulations to ensure efficient and sound clearing and payment systems within the Union and with other countries. In this respect, the European Central Bank (ECB) has adopted regulations on requirements for systemically important payment systems. This Regulation is without prejudice to the responsibilities of the ECB and the national central banks (NCBs) in the ESCB to ensure efficient and sound clearing and payment systems within the Union and with other countries.
Amendment 53 #
Proposal for a regulation
Recital 9
Recital 9
(9) A distinction should be made between three sub-categories of crypto- assets, which should be subject to more specific requirements. The first sub- category consists of a type of crypto-asset which is intended to provide digital access to a good or service, available on DLT, and that is only accepted by the issuer of that token (‘utility tokens’). Such ‘utility tokens’ have non-financial purposes related to the operation of a digital platform and digital services and should be considered as a specific type of crypto-assets. A second sub-category of crypto-assets are ‘asset-referenced tokens’. Such asset- referenced tokens aim at maintaining a stable value by referencing several currencies that are legal tender, one or several commodities, one or several crypto-assets, or a basket of such assets. By stabilising their value, those asset- referenced tokens often aim at being used by their holders as a means of payment to buy goods and services and as a store of value. A third sub-category of crypto- assets are crypto-assets that are intended primarily as a means of payment aim at stabilising their value by referencing only one fiat currency. The function of such crypto-assets is very similar to the function of electronic money, as defined in in Article 2, point 2, of Directive 2009/110/EC of the European Parliament and of the Council35 . Like electronic money, such crypto-assets are electronic surrogates for coins and banknotes and are used for making payments. These crypto- assets are defined as ‘electronic money tokens’ or ‘e-money tokens’. _________________ 35Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7).
Amendment 56 #
Proposal for a regulation
Recital 10
Recital 10
(10) Despite their similarities, electronic money and crypto-assets referencing a single fiat currency differ in some important aspects. Holders of electronic money as defined in Article 2, point 2, of Directive 2009/110/EC are always provided with a claim on the electronic money institution and have a contractual right to redeem their electronic money at any moment against fiat currency that is legal tender at par value with that currency. By contrast, some of the crypto-assets referencing one fiat currency which is legal tender do not provide their holders with such a claim on the issuers of such assets and could fall outside the scope of Directive 2009/110/EC. Other crypto-asset referencing one fiat currency do not provide a claim at par with the currency they are referencing or limit the redemption period. The fact that holders of such crypto-assets do not have a claim on the issuers of such assets, or that such claim is not at par with the currency those crypto-assets are referencing, could undermine the confidence of users of those crypto-assets. To avoid circumvention of the rules laid down in Directive 2009/110/EC, any definition of ‘e-money tokens’ should be as wide as possible to capture all the types of crypto- assets referencing one single fiat currency that is legal tender. To avoid regulatory arbitrage, strict conditions on the issuance of e-money tokens should be laid down, including the obligation for such e-money tokens to be issued either by a credit institution as defined in Regulation (EU) No 575/2013 of the European Parliament and of the Council36 , or by an electronic money institution authorised under Directive 2009/110/EC. For the same reason, issuers of such e-money tokens should also grant the users of such tokens with a claim to redeem their tokens at any moment andHolders of electronic money as defined in Article 2, point 2, of Directive 2009/110/EC are always provided with a claim on the electronic money institution and have a contractual right to redeem their electronic money at any moment against fiat currency that is legal tender at par value againstwith theat currency referencing those tokens. Because e-money tokens are also crypto- assets and can also raise new challenges in terms of consumer protection and market integrity specific to crypto-assets, they should also be subject to rules laid down in this Regulation to address these challenges to consumer protection and market integrity. _________________ 36Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
Amendment 65 #
Proposal for a regulation
Recital 12
Recital 12
(12) It is necessary to lay down specific rules for entities that provide services related to crypto-assets. A first category of such services consist of ensuring the operation of a trading platform for crypto- assets, exchanging crypto-assets against fiat official currencies that are legal tender or other crypto-assets by dealing on own account, and the service, on behalf of third parties, of ensuring the custody and administration of crypto- assets or ensuring the control of means to access to such crypto-assets. A second category of such services are the placing of crypto-assets, the reception or transmission of orders for crypto-assets, the execution of orders for crypto-assets on behalf of third parties and the provision of advice on crypto-assets. Any person that provides such crypto-asset services on a professional basis should be considered as a ‘crypto-asset service provider’.
Amendment 66 #
Proposal for a regulation
Recital 13
Recital 13
(13) To ensure that all offers to the public of crypto-assets, other than asset- referenced tokens or e-money tokens, in the Union, or all the admissions of such crypto-assets to trading on a trading platform for crypto-assets are properly monitored and supervised by competent authorities, all issuers of crypto-assets should be legal entities whose corporate structure should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries.
Amendment 72 #
Proposal for a regulation
Recital 14
Recital 14
(14) In order to ensure consumer protection, prospective purchasers of crypto-assets should be informed about the characteristics, functions and risks of crypto-assets they intend to purchase. When making a public offer of crypto- assets in the Union or when seeking admission of crypto-assets to trading on a trading platform for crypto-assets, issuers of crypto-assets should produce, notify to their competent authority and publish an information document (‘a crypto-asset white paper’) containing mandatory disclosures. Such crypto-asset white paper should contain general information on the issuer, on the project to be carried out with the capital raised, on the public offer of crypto-assets or on their admission to trading on a trading platform for crypto- assets, on the rights and obligations attached to the crypto-assets, on the underlying technology used for such assets and on the related risks. To ensure fair and non-discriminatory treatment of holders of crypto-assets, the information in the crypto-asset white paper, and where applicable in any marketing communications related to the public offer, shall be fair, clear and not misleading. This white paper should be approved by the competent authority.
Amendment 73 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 77 #
Proposal for a regulation
Recital 16
Recital 16
(16) Small and medium-sized enterprises and start-ups should not be subject to excessive administrative burdens. Offers to the public of crypto- assets in the Union that do not exceed an adequate aggregate threshold over a period of 12 months should therefore be exempted from the obligation to draw up a crypto-asset white paper. However, EU horizontal legislation ensuring consumer protection, such as Directive 2011/83/EU of the European Parliament and of the Council38 , Directive 2005/29/EC of the European Parliament and of the Council39 or the Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts40 , including any information obligations contained therein, remain applicable to these offers to the public of crypto-assets where involving business-to- consumer relations. _________________ 38Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64). 39Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, p. 22) 40Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 82 #
Proposal for a regulation
Recital 19
Recital 19
(19) UAlthough undue administrative burdens should be avoided. Competent authorities should therefore not be required to approve a crypto-asset white paper, a crypto-asset white paper should be approved by the competent authority before its publication. CFurthermore, competent authorities should, however, after publication, have the power to request that additional information is included in the crypto-asset white paper, and, where applicable, in the marketing communications.
Amendment 86 #
Proposal for a regulation
Recital 21
Recital 21
(21) Crypto-asset white papers and, where applicable, marketing communications that have been duly notified to and been approved by a competent authority should be published, after which issuers of crypto- assets should be allowed to offer their crypto-assets throughout the Union and to seek admission for trading such crypto- assets on a trading platform for crypto- assets.
Amendment 87 #
Proposal for a regulation
Recital 22
Recital 22
(22) In order to further ensure consumer protection, the consumers who are acquiring crypto-assets, other than asset- referenced tokens or e-money tokens, directly from the issuer or from a crypto- asset service provider placing the crypto- assets on behalf of the issuer should be provided with a right of withdrawal during a limited period of time after their acquisition. In order to ensure the smooth completion of an offer to the public of crypto-assets for which the issuer has set a time limit, this right of withdrawal should not be exercised byThe right of withdrawal can be exercised again in case of changes to the white paper, in order to protect the consumer afternd this until the end of the subscription period. Furthermore, the right of withdrawal should not apply where the crypto-assets, other than asset-referenced tokens or e- money tokens, are admitted to trading on a trading platform for crypto- assets, as, in such a case, the price of such crypto-assets would depend on the fluctuations of crypto-asset markets.
Amendment 88 #
Proposal for a regulation
Recital 25
Recital 25
(25) Asset-referenced tokens aim at stabilising their value by reference to several fiat currencies, to one or more commodities, to one or more other crypto- assets, or to a basket of such assets. They could therefore be widely adopted by users to transfer value or as a means of payments and thus pose increased risks in terms of consumer protection and market integrity compared to other crypto-assets. Issuers of asset-referenced tokens should therefore be subject to more stringent requirements than issuers of other crypto- assets.
Amendment 89 #
Proposal for a regulation
Recital 27
Recital 27
(27) To ensure the proper supervision and monitoring of offers to the public of asset-referenced tokens, issuers of asset- referenced tokens should have a registered office in the Union and its corporate structure should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries.
Amendment 90 #
Proposal for a regulation
Recital 28
Recital 28
(28) Offers to the public of asset- referenced tokens in the Union or seeking an admission of such crypto-assets to trading on a trading platform for crypto- assets should be possible only where the competent authority has authorised the issuer of such crypto-assets and approved the crypto-asset white paper regarding such crypto-assets. The authorisation requirement should however not apply where the asset-referenced tokens are only offered to qualified investors, or when the offer to the public of asset- referenced tokens is below a certain threshold. Credit institutions authorised under Directive 2013/36/EU of the European Parliament and of the Council41 should not need another authorisation under this Regulation in order to issue asset-referenced tokens. In those cases, the issuer of such asset- referenced tokens should be still required to produce a crypto-asset white paper to inform buyers about the characteristics and risks of such asset-referenced tokens and to notify it to the relevant competent authority, before publication. _________________ 41Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
Amendment 95 #
Proposal for a regulation
Recital 29
Recital 29
(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. The competent authority should consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.
Amendment 98 #
Proposal for a regulation
Recital 30
Recital 30
(30) To ensure consumer protection, issuers of asset-referenced tokens should always provide holders of asset-referenced tokens with clear, fair and not misleading information. The crypto-asset white paper on asset-referenced tokens should include information on the stabilisation mechanism, on the investment policy of the reserve assets, on the custody arrangements for the reserve assets, and on the rights provided to holders. Where the issuers of asset-referenced tokens do not offer a direct claim or redemption right on the reserve assets to all the holders of such asset-referenced tokens, the crypto-asset white paper related to asset-referenced tokens should contain a clear and unambiguous warning in this respect. Marketing communications of an issuer of asset-referenced tokens should also include the same statement, where the issuers do not offer such direct rights to all the holders of asset-referenced tokens.
Amendment 102 #
Proposal for a regulation
Recital 34
Recital 34
(34) Issuers of asset-referenced tokens should have robust governance arrangements, including a clear organisational structure with well-defined, transparent and consistent lines of responsibility and effective processes to identify, manage, monitor and report the risks to which they are or might be exposed. The management body of such issuers and their shareholders should have good repute and sufficient expertise and be fit and proper for the purpose of anti- money laundering and combatting the financing of terrorism. Issuers of asset- referenced tokens should also employ resources proportionate to the scale of their activities and should always ensure continuity and regularity in the performance of their activities. For that purpose, issuers of asset-referenced tokens should establish a business continuity policy aimed at ensuring, in the case of an interruption to their systems and procedures, the performance of their core payment activities. Issuers of asset- referenced tokens should also have a strong internal control and risk assessment mechanism, as well as a system that guarantees the integrity and confidentiality of information received. Information on governance arrangements should be sent together with the draft white paper to the competent authority and should be assessed during the white paper approval process.
Amendment 105 #
Proposal for a regulation
Recital 35
Recital 35
(35) Issuers of asset-referenced tokens are usually at the centre of a network of entities that ensure the issuance of such crypto-assets, their transfer and their distribution to holders. Issuers of asset- referenced tokens should therefore be required to establish and maintain appropriate contractual arrangements with those third-party entities ensuring the stabilisation mechanism and the investment of the reserve assets backing the value of the tokens, the custody of such reserve assets, and, where applicable, the distribution of the asset-referenced tokens to the public. The corporate structure of issuers of asset referenced tokens should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries.
Amendment 106 #
Proposal for a regulation
Recital 36
Recital 36
(36) To address the risks to financial stability of the wider financial system, issuers of asset-referenced tokens should be subject to capital requirements. Those capital requirements should be proportionate to the issuance size of the asset-referenced tokens and therefore calculated as a percentage of the reserve of assets that back the value of the asset- referenced tokens. Competent authorities should however be able to increase or decrease the amount of own fund requirements required on the basis of, inter alia, the evaluation of the risk-assessment mechanism of the issuer, the quality and volatility of the assets in the reserve backing the asset- referenced tokens or the aggregate value and number of asset- referenced tokens.
Amendment 111 #
Proposal for a regulation
Recital 39
Recital 39
(39) To protect holders of asset- referenced tokens against a decrease in value of the assets backing the value of the tokens, issuers of asset-referenced tokens should invest the reserve assets in secure, low risks assets with minimal market, concentration and credit risk. As the asset- referenced tokens can be used as a means of payment, all profits or losses resulting from the investment of the reserve assets should be borne by the issuer of the asset- referenced tokens.
Amendment 114 #
Proposal for a regulation
Recital 40
Recital 40
(40) Some asset-referenced tokens may offer all their holders rights, such as redemption rights or claims on the reserve assets or on the issuer, while other asset- referenced tokens may not grant such rights to all their holders and may limit the right of redemption to specific holders. Any rules regarding asset-referenced tokens should be flexible enough to capture all those situations. Issuers of asset-referenced tokens should therefore inform the holders of asset-referenced tokens on whether they are provided with a direct claim on the issuer or redemption rights. Where issuers of asset-referenced tokens grant direct rights on the issuer or on the reserve assets to all the holders, the issuers should precisely set out the conditions under which such rights can be exercised. Where issuers of asset- referenced tokens restrict such direct rights on the issuer or on the reserve assets to a limited number of holders of asset-referenced tokens, the issuers should still offer minimum rights to all the holders of asset-referenced tokens. Issuers of asset-referenced tokens should ensure the liquidity of those tokens by concluding and maintaining adequate liquidity arrangements with crypto-asset service providers that are in charge of posting firm quotes on a predictable basis to buy and sell the asset-referenced tokens against fiat currency. Where the value of the asset-referenced tokens varies significantly from the value of the reserve assets, the holders of asset-referenced tokens should have a right to request the redemption of their asset-referenced tokens against reserve assets directly from the issuer. Issuers of asset-referenced tokens that voluntarily stop their operations or that are orderly wound-down should have contractual arrangements in place to ensure that the proceeds of the reserve assets are paid to the holders of asset-referenced tokens.
Amendment 122 #
Proposal for a regulation
Recital 50
Recital 50
(50) Crypto-asset services should only be provided by legal entities that have a registered office in a Member State and that have been authorised as a crypto-asset service provider by the competent authority of the Member State where its registered office is located and its corporate structure should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries. The notion of crypto asset service provider is wide .The whole lifecycle of a crypto asset service is relevant, and the decentralization of any individual element of operations does not affect the qualification as a crypto asset service provider and does not relieve such a provider of its obligations. The qualification of crypto asset service provider leads to the application of the Travel Rule, which requires the crypto asset service providers to perform extensive Know Your Customer and Anti- Money Laundering checks for the originator and beneficiary of transactions.
Amendment 124 #
Proposal for a regulation
Recital 51
Recital 51
(51) This Regulation should not affect the possibility for persons established in the Union to receive crypto-asset services by a third-country firm at their own exclusive initiative. Where a third-country firm provides crypto-asset services at the own exclusive initiative of a person established in the Union, the crypto-asset services should not be deemed as provided in the territory of the Union. Where a third-country firm solicits clients or potential clients in the Union or promotes or advertises crypto-asset services or activities in the Union, it should not be deemed as a crypto-asset service provided at the own exclusive initiative of the client. In such a case, the third-country firm should be authorised as a crypto-asset service provider. A practise whereby a third-country firm includes general clauses in its Terms of Business or through the use of online pop-up “I agree” boxes whereby clients state that any transaction is executed on the exclusive initiative of the client, should not deemed as an attempt to circumvent the rules of this Regulation.
Amendment 129 #
Proposal for a regulation
Recital 54
Recital 54
Amendment 133 #
Proposal for a regulation
Recital 64
Recital 64
(64) It is necessary to ensure users’ confidence in crypto-asset markets and market integrity. It is therefore necessary to lay down rules to deter market abuse for crypto-assets that are admitted to trading on a trading platform for crypto-assets. However, as issuers of crypto-assets and crypto-asset service providers are very often SMEs, it would be disproportionate to apply all the provisions of Regulation (EU) No 596/2014 of the European Parliament and of the Council44 to them. It is therefore necessary to lay down specific rules prohibiting certain behaviours that are likely to undermine users’ confidence in crypto-asset markets and the integrity of crypto-asset markets, including insider dealings, unlawful disclosure of inside information and market manipulation related to crypto- assets. These bespoke rules on market abuse committed in relation to crypto- assets should be applied, where crypto- assets are admitted to trading on a trading platform for crypto-assets. _________________ 44 European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).Regulation (EU) No 596/2014 of the
Amendment 147 #
Proposal for a regulation
Recital 77
Recital 77
Amendment 181 #
Proposal for a regulation
Article 2 – paragraph 5
Article 2 – paragraph 5
Amendment 186 #
Proposal for a regulation
Article 2 – paragraph 6
Article 2 – paragraph 6
Amendment 198 #
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘asset-referenced token’ means a type of crypto-asset that purports to maintain a stable value by referring to the value of several fiatofficial currencies that are legal tender,or one or several commodities or one or several crypto-assets, or a combination of such assets;
Amendment 207 #
Proposal for a regulation
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘electronic money token’ or ‘e- money token’ means a type of crypto-asset the main purpose of which is to be used as a means of exchange and that purports to maintain a stable value by referring to the value of a fiat currency that is legal tendern official currency;
Amendment 217 #
Proposal for a regulation
Article 3 – paragraph 1 – point 6
Article 3 – paragraph 1 – point 6
(6) ‘issuer of crypto-assets’ means a legal person who offers to the public any type of crypto-assets or a person or entity with direct or indirect control over such crypto assets seeks the admission of such crypto-assets to a trading platform for crypto-assets;
Amendment 228 #
Proposal for a regulation
Article 3 – paragraph 1 – point 7
Article 3 – paragraph 1 – point 7
(7) ‘offer to the public’ means an offer to third parties to acquire a crypto-asset in exchange for fiat currency or other communication to persons in any form and by any means, presenting sufficient information on the terms of the offer and the crypto-assets to be offered, so as to enable potential holders to decide to purchase those crypto-assets;
Amendment 234 #
Proposal for a regulation
Article 3 – paragraph 1 – point 8
Article 3 – paragraph 1 – point 8
(8) ‘crypto-asset service provider’ means any person whose occupation oror entity who has been authorised to provide one or more crypto- asset services in accordance with art.53 to third parties on a professional buasiness is the provision of one or mores. A person or entity shall qualify as a crypto-asset service provider if, amongst others, - the operator conducting a crypto asset service as a business on behalf of its customers as well as anyone involved in the business development activity; - anyone directing the creation, the development or the launching of the software to provide a crypto- asset services to third parties on a professional basisfor profit even if the platform becomes fully automated and the provider is no longer involved - decision-making entity that controls the terms of the financial service which is provided;
Amendment 250 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21
Article 3 – paragraph 1 – point 21
(21) ‘reserve assets’ means the basket of fiatofficial currencies that are legal tender, commodities or crypto-assetof countries or commodities, backing the value of an asset-referenced tokens, or the investment of such assets;
Amendment 258 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)
Article 3 – paragraph 1 – point 28 a (new)
(28a) proof of stake’ mechanisms request participants to demonstrate ownership of a pre-defined crypto-asset to allow mining or validating block transactions;
Amendment 261 #
Proposal for a regulation
Article 3 – paragraph 1 – point 28 b (new)
Article 3 – paragraph 1 – point 28 b (new)
(28b) The ‘Proof of work’ consensus, requires all miners (participants to the DLT) to solve complex mathematical puzzles to validate a new transaction, adding a block to the chain and permanently and irreversibly recording a new transaction;
Amendment 273 #
Proposal for a regulation
Article 4 – paragraph 1 – point e a (new)
Article 4 – paragraph 1 – point e a (new)
(ea) has measures in place to prevent the misuse of the offering of crypto-assets to the public or trading on a platform for crypto-assets for the purposes of money laundering or financing of terrorism in accordance with Directive (EU) 2015/849 of the European Parliament and of the Council;
Amendment 274 #
Proposal for a regulation
Article 4 – paragraph 1 – point e b (new)
Article 4 – paragraph 1 – point e b (new)
(eb) does not have a parent undertaking, or a subsidiary, that is established in: (a) a third country which is listed as a high-risk third country having strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU)2015/849;(aa) third country which is listed in Annex I *or Annex II* of the EU list of non-cooperative jurisdictions for tax purposes;” (aaa) third jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits.
Amendment 275 #
Proposal for a regulation
Article 4 – paragraph 1 – point e c (new)
Article 4 – paragraph 1 – point e c (new)
(ec) issues crypto-assets which are generated through ‘proof of stake’ mechanisms;
Amendment 277 #
Proposal for a regulation
Article 4 – paragraph 2 – point a
Article 4 – paragraph 2 – point a
Amendment 279 #
Proposal for a regulation
Article 4 – paragraph 2 – point b
Article 4 – paragraph 2 – point b
Amendment 281 #
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
Amendment 283 #
Proposal for a regulation
Article 4 – paragraph 2 – point d
Article 4 – paragraph 2 – point d
Amendment 285 #
Proposal for a regulation
Article 4 – paragraph 2 – point e
Article 4 – paragraph 2 – point e
Amendment 291 #
Proposal for a regulation
Article 4 – paragraph 2 – point f
Article 4 – paragraph 2 – point f
Amendment 301 #
Proposal for a regulation
Article 4 – paragraph 3 a (new)
Article 4 – paragraph 3 a (new)
3a. The crypto-asset white paper shall contain a clear and unambiguous statement that: (a) the crypto-assets may lose their value in part or in full; (b) the crypto-assets may not always be transferable; (c) the crypto-assets may not be liquid; (d) where the offer to the public concerns utility tokens, that such utility tokens may not be exchangeable against the good or service promised in the crypto-asset white paper, especially in case of failure or discontinuation of the project; (e) where applicable, public protection schemes protecting the value of crypto assets and public compensation schemes do not exist and crypto-assets are not covered by public investor compensation or deposit guarantee schemes.
Amendment 323 #
Proposal for a regulation
Article 5 – paragraph 1 – point e
Article 5 – paragraph 1 – point e
(e) information on the underlying technology, which can not be based on a proof of work mechanism, and standards applied by the issuer of the crypto-assets allowing for the holding, storing and transfer of those crypto-assets;
Amendment 327 #
Proposal for a regulation
Article 5 – paragraph 1 – point g a (new)
Article 5 – paragraph 1 – point g a (new)
(ga) information on the validation mechanism or consensus process, namely how the crypto-asset is generated through “proof of stake” mechanisms;
Amendment 328 #
Proposal for a regulation
Article 5 – paragraph 1 – point g b (new)
Article 5 – paragraph 1 – point g b (new)
(gb) a description of sustainability indicators in relation to adverse impacts on the climate and other environmental, social and governance-related adverse impacts related to the issuance of the crypto-asset;
Amendment 329 #
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
Amendment 331 #
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
4. The crypto-asset white paper shall not contain any assertions on the future value of the crypto-assets, other than the statement referred to in paragraph 5, unless the issuer of those crypto-assets can guarantee such future value.
Amendment 340 #
Proposal for a regulation
Article 5 – paragraph 9
Article 5 – paragraph 9
9. The crypto-asset white paper shall be drawn up in at least one of the official languages of the home Member State orand in a language customary in the sphere of international finance.
Amendment 341 #
Proposal for a regulation
Article 6 – point b
Article 6 – point b
(b) the information in the marketing communications shall be fair, clear and not misleading, and shall describe the risks and rewards of purchasing crypto-assets in an equally prominent manner;
Amendment 342 #
Proposal for a regulation
Article 6 – point d
Article 6 – point d
(d) the marketing communications shall clearly state that a crypto-asset white paper has been published and indicate the address of the website of the issuer of the crypto-assets concerned as well as a contact number and email address of the issuer.
Amendment 346 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Competent authorities shall not require an ex ante approval ofe a crypto- asset white paper, norand of any marketing communications relating to it before their publication. The approval or refusal shall be given not later than 20 working days after the notification.
Amendment 354 #
Proposal for a regulation
Article 7 – paragraph 3 – point d a (new)
Article 7 – paragraph 3 – point d a (new)
(da) 3a.The notification of the crypto- asset white paper shall also explain how the issuer complies with paragraphs (ea) (eb) and (ec) of Article 4 (1).
Amendment 359 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, shall , after the approval of the competent authority, publish their crypto-asset white paper, and, where applicable, their marketing communications, on their website, which shall be publicly accessible, by no later than the starting date of the offer to the public of those crypto-assets or the admission of those crypto-assets to trading on a trading platform for crypto- assets. The crypto-asset white paper, and, where applicable, the marketing communications, shall remain available on the issuer’s website for as long as the crypto-assets are held by the public.
Amendment 363 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. The published crypto-asset white paper, and, where applicable, the marketing communications, shall be identical to the version notifiapproved toby the relevant competent authority in accordance with Article 7, or, where applicable, modified in accordance with Article 11.
Amendment 365 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. After publication of the approved crypto- asset white paper in accordance with Article 8, and, where applicable, Article 11, issuers of crypto-assets may offer their crypto-assets, other than asset- referenced tokens or e-money tokens, throughout the Union and seek admission to trading of such crypto-assets on a trading platform for crypto-assets.
Amendment 367 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, shall modify their published crypto-asset white paper, and, where applicable, published marketing communications, to describe any change or new fact that is likely to have a significant influence on the purchase decision of any potential purchaser of such crypto-assets, or on the decision of holders of such crypto-assets to sell or exchange such crypto-assets. This modified crypto asset white paper shall be approved by the competent authority before publication.
Amendment 372 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 2
Article 12 – paragraph 1 – subparagraph 2
Consumers shall have a period of 14 calendar days to withdraw their agreement to purchase those crypto-assets without incurring any cost and without giving reasons. The period of withdrawal shall begin from the day of the consumers’ agreement to purchase those crypto-assets and will restart every time a modification is made to the white paper and this until the end of the subscription period.
Amendment 375 #
Proposal for a regulation
Article 13 – paragraph 1 – point d
Article 13 – paragraph 1 – point d
(d) maintain all of their systems and security access protocols to appropriate Union standards and refrain from issuing crypto-assets on a protocol that uses a proof-of-work mechanism.
Amendment 378 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Where an offer to the public of crypto-assets, other than asset-referenced tokens or e-money tokens, is cancelled for any reason, issuers of such crypto-assets shall ensure that any funds collected from purchasers or potential purchasers are duly returned to them as soon as possible and not later than 20 working days.
Amendment 387 #
Proposal for a regulation
Article 15 – paragraph 2 a (new)
Article 15 – paragraph 2 a (new)
Amendment 388 #
Proposal for a regulation
Article 15 – paragraph 3 – subparagraph 1 – point a
Article 15 – paragraph 3 – subparagraph 1 – point a
(a) over a period of 12 months, calculated at the end of each calendar day, the average outstanding amount of asset- referenced tokens does not exceed EUR 51 000 000, or the equivalent amount in another currency;
Amendment 389 #
Proposal for a regulation
Article 15 – paragraph 3 – subparagraph 1 – point b
Article 15 – paragraph 3 – subparagraph 1 – point b
Amendment 393 #
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
Amendment 404 #
Proposal for a regulation
Article 16 – paragraph 2 – point h
Article 16 – paragraph 2 – point h
(h) where applicable, proof that natural persons who either own, directly or indirectly, more than 205% of the applicant issuer's share capital or voting rights, or who exercise, by any other means, control over the said applicant issuer, have good repute and competence;
Amendment 405 #
Proposal for a regulation
Article 16 – paragraph 2 – point o a (new)
Article 16 – paragraph 2 – point o a (new)
(oa) a description of the internal policies in place to prevent the misuse of asset-referenced tokens for the purposes of money laundering or financing of terrorism, in accordance with in accordance with Directive (EU) 2015/849 of the European Parliament and of the Council.
Amendment 406 #
Proposal for a regulation
Article 16 – paragraph 2 – point o b (new)
Article 16 – paragraph 2 – point o b (new)
(ob) a description of the validation mechanism or consensus process, namely how the asset-referenced token is generated through “proof of stake” mechanisms.
Amendment 407 #
Proposal for a regulation
Article 16 – paragraph 2 – point o c (new)
Article 16 – paragraph 2 – point o c (new)
(oc) a description of sustainability indicators in relation to adverse impacts on the climate and other environmental, social and governance-related adverse impacts of the issuance of the asset- referenced tokens.
Amendment 415 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point a a (new)
Article 17 – paragraph 1 – subparagraph 1 – point a a (new)
(aa) a detailed description of the claim that the asset-referenced token represents for holders, including the contribution to such claim of each asset being referenced when more than one asset is referenced.
Amendment 418 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point f
Article 17 – paragraph 1 – subparagraph 1 – point f
Amendment 420 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point h a (new)
Article 17 – paragraph 1 – subparagraph 1 – point h a (new)
(ha) information on the validation mechanism or consensus process, namely how the asset-referenced token is generated through “proof of stake” mechanisms
Amendment 421 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point h b (new)
Article 17 – paragraph 1 – subparagraph 1 – point h b (new)
(hb) a description of sustainability indicators in relation to adverse impacts on the climate and other environmental, social and governance-related adverse impacts related to the issuance of the asset-referenced token
Amendment 422 #
Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 2
Article 17 – paragraph 1 – subparagraph 2
Amendment 426 #
Proposal for a regulation
Article 17 – paragraph 4
Article 17 – paragraph 4
4. The crypto-asset white paper shall be drawn up in at least one of the official languages of the home Member State orand in a language customary in the sphere of international finance.
Amendment 433 #
Proposal for a regulation
Article 18 – paragraph 4
Article 18 – paragraph 4
4. The EBA, ESMA, the ECB and, where applicable, a central bank as referred to in paragraph 3 shall, within 2 months after having received the draft decision and the application file, issue a non- binding opinion on the application and transmit their non-binding opinions to the competent authority concerned, except that such opinions issued by the ECB and the national central banks shall be binding as regards the conduct of monetary policy, and the promotion of the smooth operation of payment systems. That competent authority shall duly consider those non-binding opinions and the observations and comments of the applicant issuer.
Amendment 440 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Competent authorities shall, within one month after having received the non- binding opinions referred to in Article 18(4), take a fully reasoned decision granting or refusing authorisation to the applicant issuer and, and, within 5 working days, notify that decision to applicant issuers. Where an applicant issuer is authorised, its crypto-asset white paper shall be deemed to be approved.
Amendment 445 #
Proposal for a regulation
Article 19 – paragraph 2 – point c
Article 19 – paragraph 2 – point c
(c) the applicant issuer’s business model may pose a serious threat to financial stability, monetary policy transmission or monetary sovereignty provided, however, that the competent authority shall act in accordance with the opinion of the ECB or the national central bank of issue of the relevant Union currency as regards the conduct of monetary policy and the promotion of the smooth operation of payment systems.
Amendment 457 #
Proposal for a regulation
Article 21 – paragraph 3 – point b
Article 21 – paragraph 3 – point b
(b) take any appropriate corrective measures to ensure financial stability. and the proper conduct of monetary policy and the promotion of the smooth operation of payment systems, after having requested and obtained a binding opinion from the ECB and/or the relevant central banks of Member States the currency of which is not the euro, provided, however, that the competent authorities shall act in accordance with such opinions as regards the conduct of monetary policy and the promotion of the smooth operation of payment systems.’
Amendment 460 #
Proposal for a regulation
Article 23 a (new)
Article 23 a (new)
Amendment 462 #
Proposal for a regulation
Article 25 – paragraph 1 – point d
Article 25 – paragraph 1 – point d
(d) the marketing communications shall clearly state that a crypto-asset white paper has been published and indicate the address of the website of the issuer of the crypto-assets, as well as an email address and a telephone number of the issuer.
Amendment 463 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
Amendment 467 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Issuers of asset-referenced tokens shall as soon as possible andnot later than 10 working days of the completing of the audit in a clear, accurate and transparent manner disclose on their website the outcome of the audit of the reserve assets referred to in Article 32.
Amendment 474 #
Proposal for a regulation
Article 28 – paragraph 1 –subparagraph 1 – point d
Article 28 – paragraph 1 –subparagraph 1 – point d
(d) any natural persons who either own, directly or indirectly, more than 205% of the asset-backed crypto-asset issuer's share capital or voting rights, or who exercise, by any other means, a power of control over the said issuer;
Amendment 475 #
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. Issuers of asset-referenced tokens shall disclose to the holders of their asset- referenced tokens and to the competent authority the general nature and sources of conflicts of interest and the steps taken to mitigate them.
Amendment 479 #
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. Natural persons who either own, directly or indirectly, more than 205% of the share capital or voting rights of issuers of asset-referenced tokens, or who exercise, by any other means, a power of control over such issuers shall have the necessary good repute and competence.
Amendment 481 #
Proposal for a regulation
Article 30 – paragraph 5 – subparagraph 1 – point c
Article 30 – paragraph 5 – subparagraph 1 – point c
(c) the rights or the absence of rights granted to the holders of asset-referenced tokens, as specified in Article 35;
Amendment 487 #
Proposal for a regulation
Article 30 – paragraph 12 –subparagraph 1 – introductory part
Article 30 – paragraph 12 –subparagraph 1 – introductory part
12. The EBA, in close cooperation with ESMA and the ESCB, shall develop draft regulatory technical standards specifying the minimum content of the governance arrangements on:
Amendment 494 #
Proposal for a regulation
Article 31 – paragraph 3 – introductory part
Article 31 – paragraph 3 – introductory part
3. Competent authorities of the home Member States may require issuers of asset-referenced tokens to hold an amount of own funds which is up to 20 % higher than the amount resulting from the application of paragraph 1, point (b), or permit such issuers to hold an amount of own funds which is up to 20 % lower than the amount resulting from the application of paragraph 1, point (b), where an assessment of the following indicates a higher or a lower degree of risk:
Amendment 496 #
Proposal for a regulation
Article 31 – paragraph 3 a (new)
Article 31 – paragraph 3 a (new)
3a. Without prejudice to the provisions under paragraph 3, issuers of asset- referenced tokens shall conduct, on a regular basis, stress testing that shall take into account severe but plausible financial (such as interest rate shocks stress scenarios, and nonfinancial such as operational risk) stress scenarios. Based on the outcome of such stress tests, the competent authorities of the home Member States will require issuers of asset-referenced tokens to hold an amount of own funds which is above 20 % higher than the amount resulting from the application of paragraph 1, point (b) in certain circumstances given the risk outlook and stress test results.
Amendment 498 #
Proposal for a regulation
Article 31 – paragraph 4 – subparagraph 1 – point c
Article 31 – paragraph 4 – subparagraph 1 – point c
(c) the criteria for requiring higher own funds or for allowing lower own funds, as set out in paragraph 3.
Amendment 500 #
Proposal for a regulation
Article 31 – paragraph 4 – point c a (new)
Article 31 – paragraph 4 – point c a (new)
(ca) the common reference parameters of the stress test scenarios to be included in the stress tests in accordance with paragraph 3a.The draft regulatory technical standards should be updated periodically taking into account the latest market developments;
Amendment 506 #
Proposal for a regulation
Article 32 – paragraph 1 a (new)
Article 32 – paragraph 1 a (new)
1a. The reserve shall be insulated in accordance with national law in the interest of the holders of the asset- referenced token against the claims of other creditors on the issuer, in particular in the event of insolvency. The reserve shall be composed and managed so as to cover at all times the risks associated to the claims on the issuer from holders of the asset-referred token.
Amendment 509 #
Proposal for a regulation
Article 32 – paragraph 4 – point c
Article 32 – paragraph 4 – point c
(c) contain a detailed assessment of the risks, including credit risk, market risk, concentration risk and liquidity risk resulting from the reserve assets;
Amendment 510 #
Proposal for a regulation
Article 32 – paragraph 4 – point g
Article 32 – paragraph 4 – point g
(g) describe the procedure to purchase asset-referenced tokens and to redeem such tokens against the reserve assets, and list the persons or categories of persons who are entitled to do so.
Amendment 514 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 1 – point d a (new)
Article 33 – paragraph 1 – subparagraph 1 – point d a (new)
(da) concentration risks in the custody of reserve assets are avoided.
Amendment 517 #
Proposal for a regulation
Article 33 – paragraph 7 – introductory part
Article 33 – paragraph 7 – introductory part
7. The credit institutions and crypto- asset service providers that have been appointed as custodians in accordance with paragraph 3 shall not carry out other activities with regard to issuers of asset-referenced tokens that may create conflicts of interest between those issuers, the holders of the asset-referenced tokens, and themselves unless all of the following conditions have been complied with: referenced tokens.
Amendment 518 #
Proposal for a regulation
Article 33 – paragraph 7 – point a
Article 33 – paragraph 7 – point a
Amendment 519 #
Proposal for a regulation
Article 33 – paragraph 7 – point b
Article 33 – paragraph 7 – point b
Amendment 522 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
1. Issuers of asset-referenced tokens that invest a part of the reserve assets shall invest those reserve assets only in highly liquid financial instruments with minimal market and credit, credit and concentration risk. The investments shall be capable of being liquidated rapidly with minimal adverse price effect.
Amendment 525 #
Proposal for a regulation
Article 34 – paragraph 4 –subparagraph 1 – point c a (new)
Article 34 – paragraph 4 –subparagraph 1 – point c a (new)
(ca) liquidity requirements establishing which percentage of the reserve assets should be comprised of daily maturing assets, reverse repurchase agreements which are able to be terminated by giving one working day's prior notice or cash which is able to be withdrawn by giving one day's prior notice;
Amendment 528 #
Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c b (new)
Article 34 – paragraph 4 – subparagraph 1 – point c b (new)
(cb) liquidity requirements establishing which percentage of the reserve assets should be comprised of weekly maturing assets, reverse repurchase agreements which are able to be terminated by giving 5 working days' prior notice or cash which is able to be withdrawn by giving 5 working days' prior notice;
Amendment 531 #
Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c c (new)
Article 34 – paragraph 4 – subparagraph 1 – point c c (new)
(cc) concentrating requirements preventing the issuer from investing more than a certain percentage of assets issued by a single body;
Amendment 533 #
Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c d (new)
Article 34 – paragraph 4 – subparagraph 1 – point c d (new)
(cd) concentration requirements preventing the issuer from keeping in custody more than a percentage of crypto assets or assets with crypto assets service providers or credit institutions which belong to the same group, as defined in art 2(11) of directive 2013/34/EU of the European Parliament and the Council;
Amendment 538 #
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
Amendment 547 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
Amendment 574 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
Amendment 580 #
Proposal for a regulation
Article 35 – paragraph 4
Article 35 – paragraph 4
Amendment 588 #
Proposal for a regulation
Article 35 – paragraph 5
Article 35 – paragraph 5
Amendment 600 #
Proposal for a regulation
Article 35 a (new)
Article 35 a (new)
Article 35a 1. Holders of asset-referenced tokens shall be provided with a claim on the issuer of such asset-referenced tokens or on the reserve assets. Any asset- referenced token that does not provide all holders with a claim shall be prohibited. Issuers of asset-referenced tokens shall establish a policy setting out: (a) the conditions, including thresholds, periods and timeframes, for holders of asset-referenced tokens to exercise those rights; (b) the mechanisms and procedures to ensure the redemption of the asset- referenced tokens, including in stressed market circumstances, in case of an orderly wind-down of the issuer of asset- referenced tokens as referred to in Article 42, or in case of a cessation of activities by such issuer; (c) the valuation, or the principles of valuation, of the asset-referenced tokens and of the reserve assets when those rights are exercised by the holder of asset- referenced tokens; (d) the settlement conditions when those rights are exercised.
Amendment 609 #
Proposal for a regulation
Article 39 – paragraph 1 – introductory part
Article 39 – paragraph 1 – introductory part
1. The EBA shall classify asset- referenced tokens as significant asset- referenced tokens on the basis of the following criteria, as specified in accordance with paragraph 6 and where at least threewo of the following criteria are met:
Amendment 658 #
Proposal for a regulation
Article 41 – paragraph 3
Article 41 – paragraph 3
3. Issuers of significant asset- referenced tokens shall assess and monitor the liquidity needs to meet redemption requests or the exercise of rights, as referred to in Article 34, by holders of asset-referenced tokens. For that purpose, issuers of significant asset-referenced tokens shall establish, maintain and implement a liquidity management policy and procedures. That policy and those procedures shall ensure that the reserve assets have a resilient liquidity profile that enable issuer of significant asset- referenced tokens to continue operating normally, including under liquidity stressed scenarios. Issuers of significant asset-referenced tokens shall also conduct liquidity stress testing, on a regular basis, and depending on the outcome of such tests, the EBA may decide to strengthen liquidity risk requirements. Where an issuer of significant asset-referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner.’ .
Amendment 661 #
Proposal for a regulation
Article 41 – paragraph 4
Article 41 – paragraph 4
4. The percentage referred to in Article 31(1), point (b), shall be set at 3 % of the average amount of the reserve assets for issuers of significant asset-referenced tokens. In addition, issuers of significant asset-referenced tokens shall conduct, on a regular basis, stress testing that shall take into account severe but plausible financial (such as interest rate shocks) stress scenarios and non-financial(such as operational risk) stress scenarios. Where an issuer of significant asset referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto-asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner. Based on the outcome of such stress tests, the EBA where relevant, may impose additional own funds requirements on top of the 3%requirement.
Amendment 666 #
Proposal for a regulation
Article 41 – paragraph 6 a (new)
Article 41 – paragraph 6 a (new)
Amendment 669 #
Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1 – point c a (new)
Article 43 – paragraph 1 – subparagraph 1 – point c a (new)
(ca) does not have a parent undertaking, or a subsidiary, that is established in: i)a third country which is listed as a high- risk third country that has strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council; ii)a third country that is listed in Annex I or annex II of the EU list of non- cooperative jurisdictions for tax purposes; iii) third jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits.
Amendment 670 #
Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1 – point c b (new)
Article 43 – paragraph 1 – subparagraph 1 – point c b (new)
(cb) issues electronic money tokens which are generated through ‘proof of stake’ mechanisms.
Amendment 674 #
Proposal for a regulation
Article 43 – paragraph 2
Article 43 – paragraph 2
Amendment 690 #
Proposal for a regulation
Article 44 – paragraph 5
Article 44 – paragraph 5
5. Issuers of e-money tokens shall prominently state the conditions of redemption, including any fees relating thereto, in the crypto-asset white paper as referred to in Article 46. Issuers will also refrain from issuing crypto-assets on a protocol that uses a proof-of-work mechanism.
Amendment 710 #
Proposal for a regulation
Article 46 – paragraph 2 – point e
Article 46 – paragraph 2 – point e
(e) the information on the underlying technology and standards met by the issuer of e-money tokens allowing for the holding, storing and transfer of such e- money tokens; as well as the guarantee that these tokens are not generated by a proof of work mechanism.
Amendment 715 #
Proposal for a regulation
Article 46 – paragraph 2 – point g a (new)
Article 46 – paragraph 2 – point g a (new)
(ga) information on the validation mechanism or consensus process, namely how the e-money token is generated through “proof of stake” mechanisms
Amendment 716 #
Proposal for a regulation
Article 46 – paragraph 2 – point g b (new)
Article 46 – paragraph 2 – point g b (new)
(gb) description of sustainability indicators in relation to adverse impacts on the climate and other environmental, social and governance-related adverse impacts related to the issuance of the e- money token
Amendment 720 #
Proposal for a regulation
Article 46 – paragraph 7
Article 46 – paragraph 7
7. The crypto-asset white paper shall be drawn up in at least one of the official languages of the home Member State orand in a language customary in the sphere of international finance.
Amendment 728 #
Proposal for a regulation
Article 49
Article 49
Funds received by issuers of e-money tokens in exchange of e-money tokens and that are invested in secure, low-risk assets in accordance with Article 7(2) of Directive 2009/110/EC shall be invested in assetshighly liquid financial instruments with minimal market and credit risks in accordance with Article 34(4) of this Regulation, instead of Article 7(2) of Directive2009/110/EC, denominated in the same currency as the one referenced by the e-money token.’
Amendment 732 #
Proposal for a regulation
Article 50 – paragraph 1
Article 50 – paragraph 1
1. The EBA after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), and where at least threewo of those criteria are met.
Amendment 733 #
Proposal for a regulation
Article 50 – paragraph 2
Article 50 – paragraph 2
2. Competent authorities of the issuer’s home Member State shall provide the EBA, the ECB and the relevant central banks of Member States whose currency is not the euro with information on the criteria referred to in Article 39(1) of this Article and specified in accordance with Article 39(6) on at least a yearly basis.
Amendment 739 #
Proposal for a regulation
Article 50 – paragraph 3
Article 50 – paragraph 3
3. Where the EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, is of the opinion that e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e- money tokens and the competent authority of the issuer’s home Member State. The EBA shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall duly consider those observations and comments.
Amendment 747 #
Proposal for a regulation
Article 51 – paragraph 2 – subparagraph 1
Article 51 – paragraph 2 – subparagraph 1
2. Where, on the basis of the programme of operation, the EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, is of the opinion that the e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the issuer or applicant issuer’s home Member State. The EBA shall give the competent authority of the issuer or applicant issuer’s home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall duly consider those observations and comments.
Amendment 751 #
Proposal for a regulation
Article 51 – paragraph 3 – subparagraph 1
Article 51 – paragraph 3 – subparagraph 1
3. Where, on the basis of the programme of operation, the EBA after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro is of the opinion that the e-money tokens do not meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the issuer or applicant issuer and the competent authority of the issuer or applicant issuer’s home Member State.
Amendment 755 #
Proposal for a regulation
Article 51 – paragraph 4
Article 51 – paragraph 4
4. 4. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the issuers or applicant issuer of such e-money tokens and their competent authorities thereof. The decision shall be immediately notified to the issuer or applicant issuer of e-money tokens and to the competent authority of its home Member State.
Amendment 762 #
Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 1
Article 53 – paragraph 1 – subparagraph 1
1. Crypto-asset services shall only be provided by legal persons that have a registered office in a Member State of the Union and that have been authorised as crypto-asset service providers in accordance with Article 55crypto asset service providers as defined in art 3 par 1 point 8. These providers will have a registered office in a Member State of the Union and does not have a parent undertaking, or a subsidiary, that is established in (a) third country which is listed as a high- risk third country having strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU)2015/849; (aa) third country which is listed in Annex I *or Annex II* of the EU list of non- cooperative jurisdictions for tax purposes;” (aaa) third country jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits. The crypto asset service providers have been authorised as crypto-asset service providers in accordance with Article 55 and will only provide services linked to crypto assets which are not generated by a proof of work mechanism.
Amendment 766 #
Proposal for a regulation
Article 53 – paragraph 1 a (new)
Article 53 – paragraph 1 a (new)
1a. The ESMA shall require significant crypto-asset service providers who intend to provide crypto-asset services, to obtain authorisation before commencing the provision of crypto-asset services. ESMA shall ensure the supervision of the significant CASP in close cooperation with the competent authority of the home Member State. ESMA shall develop draft regulatory technical standards to determine the criteria to be taken account when assessing the significance of a CASP.
Amendment 771 #
Proposal for a regulation
Article 53 – paragraph 3 – subparagraph 2
Article 53 – paragraph 3 – subparagraph 2
Amendment 775 #
Proposal for a regulation
Article 54 – paragraph 1
Article 54 – paragraph 1
1. Legal persons that intendIn order to be able to provide crypto- asset services shall apply for authorisation as a crypto-asset service provider, crypto-asset service providers as defined in art 3 par 1 point 8 will apply for authorisation to the competent authority of the Member State where they have their registered office.
Amendment 778 #
Proposal for a regulation
Article 54 – paragraph 2 – point a
Article 54 – paragraph 2 – point a
(a) the name, including the legal name and any other commercial name to be used, the legal entity identifier of the applicant crypto-asset service provider, the website operated by that provider, a contact email address, a contact telephone number and its physical address;
Amendment 787 #
Proposal for a regulation
Article 54 – paragraph 2 – point f
Article 54 – paragraph 2 – point f
(f) for all natural persons involved in the management body of the applicant crypto-asset service provider, and for all natural persons who, directly or indirectly, hold 205% or more of the share capital or voting rights, proof of the absence of a criminal record in respect of infringements of national rules in the fields of commercial law, insolvency law, financial services law, anti-money laundering law, counter-terrorism legislation, and professional liability obligations;
Amendment 805 #
Proposal for a regulation
Article 54 – paragraph 2 – point p
Article 54 – paragraph 2 – point p
(p) where the applicant crypto-asset service provider intends to exchange crypto-assets for fiat currency or crypto- assets for other crypto-assets, a description of the non-discriminatory commercial policy governing the relationship with clients as well as a description of the methodology for determining the price of the crypto assets they propose for exchange against funds or other crypto assets;
Amendment 809 #
Proposal for a regulation
Article 54 – paragraph 2 – point r a (new)
Article 54 – paragraph 2 – point r a (new)
(ra) a description of the applicant crypto assets service provider’s internal control mechanisms and procedures for compliance with Directive 2015/849 of the European Parliament and the Council as well as a description of the internal procedures to report on a regular basis crypto transactions to the competent tax authorities.
Amendment 810 #
Proposal for a regulation
Article 54 – paragraph 3
Article 54 – paragraph 3
Amendment 814 #
Proposal for a regulation
Article 55 – paragraph 1
Article 55 – paragraph 1
1. Competent authorities shall, within 25 working days of receipt of the application referred to in Article 54(1), assess whether that application is complete by checking that the information listed in Article 54(2) has been submitted. Where the application is not complete, the authorities shall set a deadline by which the applicant crypto-asset service providers arewill have a maximum of 10 working days to provide the missing information.
Amendment 816 #
Proposal for a regulation
Article 55 – paragraph 2
Article 55 – paragraph 2
2. Competent authorities mayshall refuse to review applications where such applications remain incomplete after the deadline referred to in paragraph 1.
Amendment 836 #
Proposal for a regulation
Article 56 a (new)
Article 56 a (new)
Amendment 840 #
Proposal for a regulation
Article 57 – paragraph 2 – point b
Article 57 – paragraph 2 – point b
(b) the commercial name, physical address, email address and telephone number of the crypto-asset service provider and website of the crypto-asset service provider or the trading platform for crypto-assets operated by the crypto-asset service provider;
Amendment 841 #
Proposal for a regulation
Article 57 – paragraph 2 – point c
Article 57 – paragraph 2 – point c
(c) the name and address of the competent authority which granted authorisation and its contact details, including an email address as well as telephone number towards the single point of contact in charge of questions and problems around crypto asset service providers;
Amendment 842 #
Proposal for a regulation
Article 59 – paragraph 3
Article 59 – paragraph 3
3. Crypto-asset service providers shall warn clients of risks associated with purchasing crypto-assets, in particular the significant price volatility of crypto-assets, combined with the inherent difficulties of valuing crypto-assets reliably. They should further warn clients explicitly that by investing in these types of product, they should be prepared to lose all their money.
Amendment 859 #
Proposal for a regulation
Article 60 – paragraph 4 – introductory part
Article 60 – paragraph 4 – introductory part
4. The insurance policy referred to in paragraph 2 shall be disclosed to the public through the crypto asset service provider's website and shall have at least all of the following characteristics:
Amendment 860 #
Proposal for a regulation
Article 60 – paragraph 4 – point d
Article 60 – paragraph 4 – point d
(d) it is provided by a third-party entity without any corporate link with the crypto asset service provider.
Amendment 865 #
Proposal for a regulation
Article 60 – paragraph 6
Article 60 – paragraph 6
Amendment 866 #
Proposal for a regulation
Article 60 – paragraph 6 a (new)
Article 60 – paragraph 6 a (new)
6a. For the purposes of paragraph 1 point (b), crypto-asset service providers shall calculate their fixed overheads for the preceding year, using figures resulting from the applicable accounting framework.
Amendment 870 #
Proposal for a regulation
Article 61 – paragraph 2
Article 61 – paragraph 2
2. Natural persons who either own, directly or indirectly, more than 205% of the crypto-asset service provider's share capital or voting rights, or who exercise, by any other means, a power of control over the said crypto-asset service provider shall provide evidence that they have the necessary good repute and competence.
Amendment 876 #
Proposal for a regulation
Article 61 – paragraph 7 – subparagraph 1
Article 61 – paragraph 7 – subparagraph 1
7. Crypto-asset service providers shall have internal control mechanisms and effective procedures for risk assessment, including effective control and safeguard arrangements for managing ICT systems in accordance with Regulation (EU) 2021/xx of the European Parliament and of the Council.65 as well as effective procedures to comply with the obligations in relation to money laundering and terrorist financing under Directive (EU) 2015/849 of the European Parliament and of the Council. They shall monitor and, on a regular basis, evaluate the adequacy and effectiveness of internal control mechanisms and procedures for risk assessment and take appropriate measures to address any deficiencies. _________________ 65 Proposal for a Regulation of the European Parliament and the Council on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014 and (EU) No 909/2014 - COM(2020)595.
Amendment 887 #
Proposal for a regulation
Article 62
Article 62
Crypto-asset service providers shall notify, with a period of maximum 5 working days, their competent authority of any changes to their management body and shall provide their competent authority with all the necessary information to assess compliance with Article 61.
Amendment 891 #
Proposal for a regulation
Article 63 – paragraph 3 – subparagraph 1
Article 63 – paragraph 3 – subparagraph 1
3. Crypto-asset service providers shall, promptly place any client’s funds, with a central bank or a credit institutionredit institution or, where the relevant eligibility criteria and conditions for opening an account are met, a central bank.
Amendment 894 #
Proposal for a regulation
Article 64 – paragraph 4
Article 64 – paragraph 4
4. Crypto-assets service providers shall investigate all complaints in a timely and fair manner,fair manner and within 3 working days after reception of the complaint. The crypto asset service provider will notify a reference number of the complaint to the client and communicate the outcome of such investigations to their clients within a reasonable period of time not going beyond 25 working days.
Amendment 898 #
Proposal for a regulation
Article 65 – paragraph 2 – subparagraph 1
Article 65 – paragraph 2 – subparagraph 1
2. Crypto-asset service providers shall disclose to their clients and, potential clients the generaland the competent authority the specific nature and sources of conflicts of interest and the steps taken to mitigate them.
Amendment 900 #
Proposal for a regulation
Article 65 – paragraph 4
Article 65 – paragraph 4
4. Crypto-asset service providers shall assess and at least annually review, their policy on conflicts of interest and take all appropriate measures to address any deficiencies and communicate them to the competent authority.
Amendment 901 #
Proposal for a regulation
Article 66 – paragraph 1 – subparagraph 1 – point e
Article 66 – paragraph 1 – subparagraph 1 – point e
(e) crypto-asset service providers retain the expertise and resources necessary for evaluating the quality of the services provided, for supervising the outsourced services effectively and for managing the risks associated with the outsourcing on an ongoing basis and shall provide proof of this expertise and resource to the competent authority before the outsourcing starts.;
Amendment 902 #
Proposal for a regulation
Article 66 – paragraph 3
Article 66 – paragraph 3
3. Crypto-asset service providers shall enter into a written agreement with any third parties involved in outsourcing. That written agreement, a copy of which will be transferred to the competent authority of the crypto asset service providers at the beginning of the outsourcing relation, shall specify the rights and obligations of both the crypto-asset service providers and of the third parties concerned, and shall allow the crypto-asset service providers concerned to terminate that agreement.
Amendment 903 #
Proposal for a regulation
Article 66 – paragraph 4
Article 66 – paragraph 4
4. Crypto-asset service providers and third parties shall, upon request, make available to the competent authorities and the relevant authorities all information necessary to enable those authorities to assess compliance of the outsourced activities with the requirements of this Title.
Amendment 915 #
Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 1 – introductory part
Article 68 – paragraph 1 – subparagraph 1 – introductory part
1. Crypto-asset service providers will be authorised for the operation of a trading platform for crypto-assets provided they have set up a partnership with a credit institution which has opened real-name bank accounts for their customers. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall lay down operating rules for the trading platform. These operating rules shall at least:
Amendment 917 #
Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 2
Article 68 – paragraph 1 – subparagraph 2
For the purposes of point (a), the operating rules shall clearly state that a crypto-asset shall not be admitted to trading on the trading platform, where a crypto-asset white paper has not been published, unless such a or where the crypto- asset benefits from the exemption set out in Articles 4(2).provider is not connected to an open real-name bank account
Amendment 918 #
Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 4
Article 68 – paragraph 1 – subparagraph 4
The operating rules of the trading platform for crypto-assets shall prevent the admission to trading of crypto-assets which have inbuilt anonymisation function unless the holders of the crypto-assets and their transaction history can be identified by the crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets or by competent authorities.
Amendment 921 #
Proposal for a regulation
Article 68 – paragraph 2
Article 68 – paragraph 2
2. These operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home Member States orand in another language that is customary in the sphere of finance. Those operating rules shall be made public on the website of the crypto-asset service provider concerned.
Amendment 922 #
Proposal for a regulation
Article 68 – paragraph 4 – point e a (new)
Article 68 – paragraph 4 – point e a (new)
(ea) prevent and detect insider dealing, market manipulation and attempted insider dealing and market manipulation.
Amendment 927 #
Proposal for a regulation
Article 68 – paragraph 10 a (new)
Article 68 – paragraph 10 a (new)
10a. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is above a threshold set by the ESMA shall report complete and accurate details of transactions in crypto- assets traded on its platform to the competent authority as quickly as possible, and no later than the close of the following working day.
Amendment 929 #
Proposal for a regulation
Article 68 – paragraph 10 b (new)
Article 68 – paragraph 10 b (new)
10b. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is below the threshold mentioned in paragraph 12 shall keep at the disposal of the competent authority, for at least five years, complete and accurate details of transactions in crypto- assets traded on its platform.
Amendment 931 #
Proposal for a regulation
Article 68 – paragraph 10 c (new)
Article 68 – paragraph 10 c (new)
10c. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall keep at the disposal of the competent authority, for at least five years, the relevant data relating to all orders in crypto-assets which are advertised through their systems. The records shall contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order and the details of which shall be reported or kept at the disposal of the competent authority in accordance with paragraphs 11 and 12.
Amendment 935 #
Proposal for a regulation
Article 70 – paragraph 1
Article 70 – paragraph 1
1. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall take all necessary steps to obtain, when executing orders, the best possible result for their clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order, unless the crypto-asset service provider concerned executes orders for crypto-assets following specific instructions given by its clients. Where a crypto-asset service provider executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the crypto-assets and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.
Amendment 937 #
Proposal for a regulation
Article 70 – paragraph 1
Article 70 – paragraph 1
1. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall take all necessary steps to obtain, when executing orders, the best possible result for their clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order, unless the crypto-asset service provider concerned executes orders for crypto-assets following specific instructions given by its clients. Where a crypto-asset service provider executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the crypto-assets and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.
Amendment 939 #
Proposal for a regulation
Article 70 – paragraph 3
Article 70 – paragraph 3
3. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall provide appropriate and clear information to their clients on their order execution policy and any significant change to it.ask the client or potential client to provide information regarding that person’s knowledge and experience in crypto- assets, the client’s objectives, risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets so as to enable the crypto-asset service provider to assess whether the crypto-asset envisaged is appropriate for the client. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the crypto-asset is not appropriate to the client or potential client, it shall warn the client or potential client
Amendment 941 #
Proposal for a regulation
Article 70 – paragraph 3 a (new)
Article 70 – paragraph 3 a (new)
3a. Crypto-asset service providers that are authorised to execute orders for crypto-assets on behalf of third parties shall ask the client or potential client to provide information regarding that person’s knowledge and experience in crypto-assets, the client’s objectives, risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets so as to enable the crypto-asset service provider to assess whether the crypto-asset envisaged is appropriate for the client. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the crypto-asset is not appropriate to the client or potential client, it shall warn the client or potential client.
Amendment 943 #
Proposal for a regulation
Article 71 – paragraph 2 – point b a (new)
Article 71 – paragraph 2 – point b a (new)
(ba) c. incentives paid by the issuer to the crypto asset service provider.
Amendment 947 #
Proposal for a regulation
Article 73 – paragraph 1
Article 73 – paragraph 1
1. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall assess whether compatibility of such crypto-assets with the needs of the clients and recommend them only when this is in the interest of the clientrypto-asset services or crypto-assets are suitable for the clients, considering the clients’ knowledge and experience in crypto- assets, objectives and ability to bear losses.
Amendment 949 #
Proposal for a regulation
Article 73 – paragraph 1
Article 73 – paragraph 1
1. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall assess the compatibility of such crypto-assets with the needs of the clients and recommend them only when this is in the interest of the clientrequirements and preferences of the client or potential client and recommend them only when they are suitable for the client or potential client and, in particular, are in accordance with his or her risk tolerance and ability to bear losses.
Amendment 951 #
Proposal for a regulation
Article 73 – paragraph 1 a (new)
Article 73 – paragraph 1 a (new)
1a. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall in good time before providing advice on crypto-assets inform potential clients: (a) whether or not the advice is provided on an independent basis; (b) whether the advice is based on a broad or on a more restricted analysis of different crypto-assets and, in particular, whether the range is limited to crypto- assets issued or offered by entities having close links with the crypto-asset service provider or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; Crypto-asset service providers shall also provide potential clients with information on all costs and associated charges, including the cost of advice, where relevant, the cost of crypto-assets recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.
Amendment 952 #
Proposal for a regulation
Article 73 – paragraph 1 a (new)
Article 73 – paragraph 1 a (new)
1a. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall in good time before providing advice on crypto-assets inform potential clients: (a) whether or not the advice is provided on an independent basis; (b) whether the advice is based on a broad or on a more restricted analysis of different crypto-assets and, in particular, whether the range is limited to crypto- assets issued or offered by entities having close links with the crypto-asset service provider or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; Crypto-asset service providers shall also provide potential clients with information on all costs and associated charges, including the cost of advice, where relevant, the cost of crypto-assets recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.
Amendment 955 #
Proposal for a regulation
Article 73 – paragraph 3 – subparagraph 1
Article 73 – paragraph 3 – subparagraph 1
3. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers that are authorised to provide advice on crypto-assets shall request information about the client or prospectiveotential client’s knowledge of, and experience in crypto-assets, the clients' objectives, financial situation including risk tolerance, financial situation including the ability to bear losses, and a basic understanding of risks involved in purchasing crypto-assets. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall warn clients that, due to their nature, (a) the crypto-assets may lose their value in part or in full; (b) the crypto-assets may not always be transferable; (c) the crypto-assets may not be liquid; (d) the value of crypto-assets may fluctuate; (e) where applicable, public protection schemes protecting the value of crypto assets and public compensation schemes do not exist and crypto-assets are not covered by public investor compensation or deposit guarantee schemes.
Amendment 957 #
Proposal for a regulation
Article 73 – paragraph 3 a (new)
Article 73 – paragraph 3 a (new)
3a. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers that are authorised to provide advice on crypto-assets shall request information about the client or potential client’s knowledge of, and experience in crypto-assets, the clients' objectives, financial situation including risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall warn clients that, due to their nature, (a) the crypto-assets may lose their value in part or in full; (b) the crypto-assets may not always be transferable; (c) the crypto-assets may not be liquid; (d) the value of crypto-assets may fluctuate; (e) where applicable, public protection schemes protecting the value of crypto assets and public compensation schemes do not exist and crypto-assets are not covered by public investor compensation or deposit guarantee schemes.
Amendment 958 #
Proposal for a regulation
Article 73 – paragraph 4
Article 73 – paragraph 4
4. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall establish, maintain and implement policies and procedures to enable them to collect and assess all information necessary to conduct this assessment for each client. They shall take reasonable steps to ensure that the information collected about their clients or prospectiveotential clients is reliable.
Amendment 960 #
Proposal for a regulation
Article 73 – paragraph 5
Article 73 – paragraph 5
5. Where clients do not provide the information required pursuant to paragraph 4, or where crypto-asset service providers that are authorised to provide advice on crypto-assets consider, on the basis of the information received under paragraph 4, that the prospectiveotential clients or clients have insufficient knowledge, crypto-asset service providers that are authorised to provide advice on crypto-assets shall inform those clients or prospectiveotential clients that the crypto-assets or crypto-asset services may be inappropriatnot be suitable for them and issue them a warning on the risks associated with crypto-assets. That risk warning shall clearly state the risk of losing the entirety of the money invested or converted into crypto-assets. Clients shall expressly acknowledge that they have received and understood the warning issued by the crypto-asset service provider concerned.
Amendment 961 #
(a) specify the clients’ demands and needrequirements and preferences;
Amendment 975 #
Proposal for a regulation
Article 77 – paragraph 2
Article 77 – paragraph 2
Amendment 1008 #
Proposal for a regulation
Article 89 – paragraph 2
Article 89 – paragraph 2
2. Where, despite the measures taken by the competent authority of the home Member State, the crypto-asset service provider or the issuer of crypto-assets persists in infringing this Regulation, the competent authority of the host Member State, after informing the competent authority of the home Member State, ESMA and where appropriate the EBA, shall take all appropriate measures in order to protect consumers and shall inform tlients of crypto assets service providers and holders of crypto assets in particular retail holders. This includes the possibility to prevent crypto asset service providers and issuers or offerors seeking admission to trading, to continue to conduct their activities. The Commission, ESMA and where appropriate the EBA, will be informed thereof without undue delay.
Amendment 1009 #
Proposal for a regulation
Article 92 – paragraph 1 – subparagraph 1 – point b
Article 92 – paragraph 1 – subparagraph 1 – point b
(b) infringements of Articles 15 to 17 and 21, Articles 23 to 367 and Article 42;
Amendment 1010 #
Proposal for a regulation
Article 92 – paragraph 1 – subparagraph 1 – point d
Article 92 – paragraph 1 – subparagraph 1 – point d
(d) infringements of Article 53, 56 and Articles 58 to 734;
Amendment 1011 #
Proposal for a regulation
Article 92 – paragraph 2 – point c
Article 92 – paragraph 2 – point c
(c) maximum administrative pecuniary sanctionfines of at least twice the amount of the profits gained or losses avoided because of the infringement where those can be determined;
Amendment 1012 #
Proposal for a regulation
Article 92 – paragraph 3 – point d
Article 92 – paragraph 3 – point d
(d) in the case of a legal person, maximum administrative pecuniary sanctionfines of at least 125% of the total annual turnover of that legal person according to the last available financial statements approved by the management body;
Amendment 1013 #
Proposal for a regulation
Article 92 – paragraph 4 – point d
Article 92 – paragraph 4 – point d
(d) in the case of a legal person, maximum administrative pecuniary sanctions of at least 125% of the total annual turnover of that legal person according to the last available financial statements approved by the management body;
Amendment 1014 #
Proposal for a regulation
Article 92 – paragraph 6 – point f
Article 92 – paragraph 6 – point f
(f) in the event of repeated infringements of Articles 78, 79 or 80, a permanent ban of any member of the management body of a crypto-asset service provider or any other natural person who is held responsible for the infringement, from exercising management functions in the sector of crypto-asset service providers;
Amendment 1023 #
99 Colleges for issuers of significant asset-referenced tokens and significant e- money tokens
Amendment 1130 #
Proposal for a regulation
Article 122 – paragraph 2 – point j a (new)
Article 122 – paragraph 2 – point j a (new)
(ja) an assessment of the impact of this regulation on decentralised finance applications.
Amendment 1131 #
Proposal for a regulation
Article 122 – paragraph 2 – point n
Article 122 – paragraph 2 – point n
(n) a description of developments in business models and technologies in the crypto-asset market with a particular focus on the environmental impact of new technologies;
Amendment 1133 #
Proposal for a regulation
Article 122 – paragraph 2 – point r
Article 122 – paragraph 2 – point r
(r) the costs of complying with this Regulation for issuers of crypto-assets, other than asset-referenced tokens and e- money tokens as a percentage of the amount raised through crypto-asset issuances;, as well as the turn over and the total profits generated by issuers through these issuances in the period covered.
Amendment 1134 #
Proposal for a regulation
Article 122 – paragraph 2 – point s
Article 122 – paragraph 2 – point s
(s) the costs for crypto-asset service providers to comply with this Regulation as a percentage of their operational costs;, as well as the turn over and the total profits generated by these service providers, generated via these services in the period covered.
Amendment 1135 #
Proposal for a regulation
Article 122 – paragraph 2 – point t
Article 122 – paragraph 2 – point t
(t) the costs for issuers of issuers of asset-referenced tokens and issuers of e- money tokens to comply with this Regulation as a percentage of their operational costs; as well as the turn over and the total profits generated by these issuers through the issuances in the period covered.
Amendment 1139 #
Proposal for a regulation
Article 123
Article 123
Amendment 1148 #
Proposal for a regulation
Article 126 – paragraph 2
Article 126 – paragraph 2
2. This Regulation shall apply from [please insert date 186 months after the date of entry into force].
Amendment 1149 #
Proposal for a regulation
Article 126 – paragraph 3
Article 126 – paragraph 3
Amendment 1151 #
2. Except for issuers of asset- referenced tokens that are exempted from authorisation in accordance with Article 15(3), dDetails about the authorisation as an issuer of asset-referenced tokens and name of the competent authority which granted such an authorisation.
Amendment 1154 #
Proposal for a regulation
Annex V – point 12
Annex V – point 12
12. The issuer infringes Article 26(2) by not disclosing as soon as possible and/or, not later than 10 working days of the completing of the audit in a clear, accurate and transparent manner on their website the outcome of the audit of the reserve assets referred to in Article 32.
Amendment 1155 #
Proposal for a regulation
Annex V – point 18
Annex V – point 18
18. The issuer infringes Article 28(1), by not maintaining and implementing effective policies and procedures to prevent, identify, manage and disclose conflicts of interest between the issuer itself and its shareholders, the members of its management body, its employees, any natural persons who either own, directly or indirectly, more than 205% of the issuer's share capital or voting rights, or who exercise, by any other means, a power of control over the said issuer, the holders of significant asset-referenced tokens, any third party providing one of the functions as referred in Article 30(5), point (h), or any natural or legal person granted with a direct claim or a redemption right in accordance with Article 35(3).
Amendment 1156 #
Proposal for a regulation
Annex V – point 29
Annex V – point 29
29. Unless it has been permitted to hold a lower amount of own funds in accordance with Article 31(3), tThe issuer infringes Article 31(1) point (a) or 41(4) by not abiding, at all times, to the own funds requirement.
Amendment 1157 #
Proposal for a regulation
Annex V – point 53
Annex V – point 53
Amendment 1158 #
Proposal for a regulation
Annex V – point 55
Annex V – point 55
Amendment 1159 #
Proposal for a regulation
Annex V – point 63
Annex V – point 63
63. The issuer infringes Article 41(3) by not establishing, maintaining or implementing a liquidity management policy and procedures or by not having policy and procedures that ensure that the reserve assets have a resilient liquidity profile that enables the issuer of significant asset-referenced tokens to continue operating normally, including under liquidity stressed scenarios., or by not conducting liquidity stress testing, on a regular basis, or by not complying with the decision following up on the outcome of the liquidity stress testing
Amendment 1160 #
Proposal for a regulation
Annex VI – point 17
Annex VI – point 17
17. Unless it has been permitted to hold a lower amount of own funds in accordance with Article 31(3), tThe issuer infringes Article 41(4) by not abiding, at all times, to the own funds requirement.