ChainCatcher news, the European Banking Authority (EBA) has released a report on tokenized deposits, stating that from a regulatory perspective, tokenized deposits are fundamentally the same as traditional deposits. The agency plans to analyze existing regulations to determine if they are adequate. It noted that, due to the limited activity in tokenized deposits so far, there is no urgency to take action. A survey conducted in March identified only two projects, but did not specify their names.Analysis suggests that one of the projects should be the Commercial Bank of Germany's Currency Token (CBMT), as it mentioned five banks and five enterprises; the other could be Euroclear's D-FMI, as it is purely used for securities settlement and referenced the UTXO used by R3's Corda enterprise blockchain. According to the EBA's survey, 17% of EU banks plan to engage in tokenized deposits in the next two years.The paper discusses the benefits of tokenized deposits, such as programmability, efficiency, and atomic settlement. It believes that most banks may adopt permissioned blockchains due to the need to identify customers, and the Basel Committee's crypto rules make it difficult for banks to use permissionless blockchains. However, the agency points out that blockchains face typical 51% attack risks and potential reliance on third parties, while programmability may introduce additional liquidity risks. Nonetheless, the report states that it is still too early to discuss the impact of tokenization on deposit stickiness.

ChainCatcher news, the European Banking Authority (EBA) is the European regulatory body responsible for addressing vulnerabilities in the European banking sector. It has published two sets of guidelines, which include specific guidelines for Payment Service Providers (PSP) and Crypto Asset Service Providers (CASP). The guidelines will take effect on December 30, 2025.The EBA specifically outlines the measures that PSPs and CASPs must take to comply with EU and national sanctions regimes when transferring funds or cryptocurrencies. According to the EBA, these guidelines ensure the implementation of EU and national sanctions.The EBA stated: "This guideline clarifies how the sanctions policy and procedures interact with the broader governance and risk management framework of financial institutions to avoid operational and legal risks for financial institutions and ensure the effective implementation of sanctions."

ChainCatcher news, according to Cointelegraph, the European Banking Authority (EBA) has stated that it will take significant steps to strengthen anti-money laundering (AML) measures, with the travel rule guidelines extending to crypto service providers and intermediaries starting from December 30. This means that crypto asset service providers (CASP) will be subject to the EU's anti-money laundering/counter-terrorism financing (AML/CFT) regime.In addition, crypto service providers and intermediaries will need to declare their multi-intermediary and cross-border transfer policies.

ChainCatcher news, according to CoinDesk, the European Banking Authority (EBA) released the final draft of the technical standards for prudential requirements that companies must comply with under the Markets in Crypto-Assets (MiCA) legislation on Thursday. The EBA's standards establish the criteria for stress testing programs and detail the liquidity requirements for reserve assets, as well as the recovery plans that issuers need to develop.The recently published proposal states: "Issuers of asset-referenced tokens need to conduct stress tests based on reasonable financial stress scenarios, and the competent authority will be able to increase the own funds requirements for issuers of asset-referenced tokens based on the risk outlook and the results of the stress tests."This technical standard draft was developed in close cooperation with groups from 27 countries, the European Securities and Markets Authority (ESMA), and the European Central Bank (ECB), among other institutions. MiCA is a comprehensive set of tailored rules designed for the cryptocurrency industry, passed last year. The legislation sets rules for cryptocurrency companies and stablecoin issuers.

ChainCatcher news, the European Banking Authority (EBA), the EU's banking regulator, today expanded its guidelines on anti-money laundering (AML) and counter-terrorist financing (CTF) risk factors to include crypto asset service providers (CASPs). The new guidelines emphasize the AML/CTF risk factors and mitigation measures that CASPs need to consider.It is reported that this revision aims to help CASPs identify these risks by providing a non-exhaustive list of different factors that may indicate whether CASPs face higher or lower AML/CTF risks due to their customers, products, delivery channels, and geographical locations.Based on these risk factors, CASPs can develop an understanding of their customer base and identify the parts of their business or activities that are most susceptible to AML/CTF impacts. The guidelines also explain how CASPs should adjust their mitigation measures, including the use of blockchain analysis tools.The EU passed legislation on the transfer of digital assets last year, along with its landmark regulatory framework for crypto asset markets (MiCA).

ChainCatcher news, according to CoinDesk, the EU banking regulator EBA (European Banking Authority) held a public hearing on Thursday to discuss its proposed operational guidelines for stablecoin issuers under the upcoming Markets in Crypto-Assets (MiCA) framework. During the hearing, officials urged the public and industry members to engage with them to establish the right rules.It is reported that at Thursday's hearing, EBA policy officials broke down their proposed guidelines for Asset-Referenced Token (ART) issuers, which MiCA defines as cryptocurrencies that maintain stability by referencing one or more official currencies or asset values. The hearing covered the EBA's first set of guidelines regarding internal governance for stablecoin issuers, management requirements, compliance, compensation, and recommendations for disclosing conflicts of interest.

ChainCatcher news, the European Banking Authority (EBA) has launched a three-round consultation on the draft Regulatory Technical Standards (RTS) under the Markets in Crypto-Assets Regulation (MiCAR) to specify the liquidity requirements for asset reserves, highly liquid financial instruments within asset reserves, the minimum content of liquidity management policies, and the procedures for token issuers. The consultation will last until February 8, 2024.In a consultation initiated regarding the trading reports of Asset-Referenced Tokens (ART) and Electronic Money Tokens (EMT) denominated in non-EU currencies, the EBA stated that the RTS draft aims to clarify the scope of trading related to the use of ART and EMT as trading instruments denominated in non-EU currencies, the scope of trades that issuers should report, and how issuers should estimate the quantity and value of such trades.In the consultation launched on the draft recovery plan guidelines prepared by ART and EMT issuers, the EBA indicated that through the recovery plan, issuers of ART and EMT should be prepared in advance to address adverse situations that may affect their ability to comply with the regulatory requirements applicable to asset reserves.The EBA also proposed the overall technical framework for liquidity management of asset reserves. This includes the minimum creditworthiness and liquidity robustness for credit institutions absorbing deposits from issuers, concentration limits on deposits from issuers at credit institutions, and over-collateralization of token-supported assets.

ChainCatcher news, stablecoin issuer Circle responded to a proposal from the European Banking Authority (EBA) that expands the scope of its anti-money laundering and counter-terrorism financing guidelines to include crypto asset service providers. Circle pointed out that the proposal uses the term "service providers in the crypto asset ecosystem," and believes that the ambiguity of this phrase could inadvertently encompass providers of technology and ancillary services, such as blockchain analysis and network infrastructure.Circle stated that the guidelines should not extend to providers that are not subject to MiCA regulation, "If certain EU companies are not within the scope of MiCA regulation, they should not be designated as higher risk. The fact that they are excluded from EU regulation indicates that they are not subject to EU financial, prudential, and anti-money laundering regulations, and therefore should not be bound by these EBA guidelines."

ChainCatcher news, stablecoin issuers should take immediate action to comply with the new EU cryptocurrency regulations that will come into effect in one year. The European Banking Authority stated in a statement on Wednesday that it expects stablecoin (tokens pegged to assets like the US dollar) issuers to have sound governance and effective risk management, as well as proper arrangements for handling redemptions and other matters.According to the EU's Markets in Crypto-Assets (MiCA) regulations, stablecoin operators must obtain a license from the national financial regulatory authority of at least one member state by June 2024.The EBA stated that preparing in advance to comply with the rules will help avoid "disruptive and abrupt business model adjustments that may occur later."

ChainCatcher news, the European Banking Authority (EBA) stated in a draft guideline released on Wednesday that cryptocurrency companies should pay attention to customers using privacy tokens or self-custody wallets when monitoring potential money laundering activities. The EBA proposed amendments to its "money laundering and terrorist financing" risk factors guidelines to set out the steps that crypto asset service providers (CASPs) should take to effectively identify and mitigate these risks.In addition, the guidelines also express the desire for banks accepting cryptocurrency customers to check their regulatory licenses and ownership. The guidelines will be open for public consultation until August 31. (source link)

ChainCatcher news, José Manuel Campa, the chairman of the European Banking Authority (EBA), stated that the new regulations for the crypto asset market, known as MiCA, will come into effect in 2024, but crypto market participants should start adjusting their operations now.In addition, the EBA chairman also mentioned that the upcoming EU regulations governing stablecoins will focus on ensuring that issuers have diversified reserves, managing conflicts of interest, and not transferring risks to other participants. (CoinDesk)