EBA is looking for input on its newest consultation on specifying requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens (ARTs) under MiCAR.

In response to the evolving landscape of digital assets, the European Banking Authority (EBA) released a consultation paper on December 7, 2023, focusing on asset-referenced tokens (ARTs). The paper proposes stringent regulations to address potential conflicts of interest in the issuance of ARTs. Key requirements include:

1. Management Oversight: Enhanced roles and responsibilities for the issuer's management body to oversee conflict of interest policies.

2. Documentation and Transparency: Mandatory detailed documentation of policies and procedures, ensuring clear, accessible information for ART holders.

3. Personal Transaction Policies: Strict guidelines for personal transactions of staff, preventing misuse of insider information.

4. Remuneration Practices: Remuneration policies designed to avoid conflicts of interest and encourage responsible behavior.

5. Third-Party Engagements: Rigorous scrutiny and transparency in dealings with third parties to prevent undue influence or conflict.

These proposed standards aim to integrate the digital asset market with traditional financial regulatory frameworks, emphasizing transparency, fairness, and investor protection in the rapidly growing cryptocurrency sector.