43 Amendments of Joachim SCHUSTER 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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.