2020/0265(COD) | [ParlTrack]

Proposal for a regulation
Recital 31 a (new)

(31a) In order to strengthen investor protection, considers that all holders of crypto-assets exceeding a specific share of the crypto-asset market in question should have an obligation to declare this to the regulatory authorities and the issuer so that new entrants may be fully informed and in a position to appreciate the risks of market manipulation.

Amendment 1000 #

Proposal for a regulation
Article 82 – paragraph 1 – subparagraph 1 – point s

(s) to make public the fact that an issuer or offeror of crypto-assets, including an issuer or offeror of asset-referenced tokens or e-money tokens, ~~or a person asking for admission to trading on a trading platform for crypto-assets~~ is failing to comply with its obligations;

Amendment 1001 #

Proposal for a regulation
Article 82 – paragraph 1 – subparagraph 1 – point t

(t) to disclose, or to require the issuer o~~f crypto-assets~~r offeror, where applicable, including an issuer or offeror of asset-referenced tokens or e-money tokens, to disclose, all material information which may have an effect on the assessment of the crypto-assets offered to the public or admitted to trading on a trading platform for crypto-assets in order to ensure consumer protection or the smooth operation of the market;

Amendment 1002 #

Proposal for a regulation
Article 82 – paragraph 1 – subparagraph 1 – subparagraph 1

Supervisory and investigative powers exercised in relation to e-money token issuers are without prejudice to powers granted to relevant competent authorities under national laws transposing Directive 2009/110/EC, with the exception of significant e-money tokens, where the powers are exercised only by the EBA in accordance with Article [98(3)(a)].

Amendment 1003 #

Proposal for a regulation
Article 82 – paragraph 1 a (new)

1a. In the case of significant asset- referenced tokens or significant e-money tokens, the supervisory and investigative powers granted under this article are executed exclusively by the EBA.

Amendment 1004 #

Proposal for a regulation
Article 82 – paragraph 6

6. A person making information available to the competent authority in accordance with this Regulation shall not be considered to be infringing any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, and shall not be subject to liability of any kind related to such notification, unless it is established through the appropriate procedure that that person was acting in bad faith or with the intention of harming third parties.

Amendment 1005 #

Proposal for a regulation
Article 82 – paragraph 6 a (new)

6a. In determining, as per Title II, whether to authorise a crypto-asset competent authorities shall take into account the likely energy consumption of the proposal and reject any proposed crypto-asset that is reliant on technology which uses excessive energy. In determining this, the competent authority may consult as it sees fit and take into account European Union energy and climate policies.

Amendment 1006 #

Proposal for a regulation
Article 83 – paragraph 6 – subparagraph 1

6. By derogation to paragraph 5, the competent authorities may refer to the EBSMA in situations where a request for cooperation, in particular to exchange information, concerning an issuer of asset- referenced tokens or e-money tokens, or crypto-asset services related to asset- referenced tokens or e-money tokens, has been rejected or has not been acted upon within a reasonable time.

Amendment 1007 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 83 a (new)

Article 83a Request for re-assessment 1. Competent authorities of host Member States may at any time present a reasoned opinion and request the competent authority of the home Member State to re-assess its decision that the issuer of an ART has refuted the presumption set out in Art. 16a Para. 1. 2. The competent authority of the home Member State shall, within 2 months from the receipt of a request for re-assessment, present a reasoned opinion and inform EBA, ESMA, the ECB and all competent authorities of host Member State whether it intends to change its decision that the issuer of an ART has refuted the presumption set out in Art. 16a Para. 1. 3. Where the competent authority of the home Member State presents no reasoned opinion or intends not to change its decision, the competent authority of the host Member State may, within 1 month, refer the matter to the ECB to issue a binding opinion. 4. The ECB issues a binding opinion as to whether the issuer of an ART has refuted the presumption set out in Art. 16a Para. 1 and transmits its opinion to the competent authorities concerned, to EBA and to ESMA. 5. Where applicable, the competent authority of the home Member State takes appropriate supervisory action.

Amendment 1008 #

Proposal for a regulation
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 c~~onsumers and shall inform t~~lients 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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Jonás FERNÁNDEZ

Proposal for a regulation
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 101 #

Proposal for a regulation
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 pro~~be properly equipperd 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. In order to prevent market manipulation, considers that it is the responsibility of the issuer or the platform for the purchase or trading of crypto-assets to maintain its services without undue interruptions. Considers that investors and consumers must be able to pursue remedies against an issuer or platform that has unilaterally interrupted its services following a market event, without having received authorisation for such action from the regulatory authority. 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.

Amendment 1010 #

Proposal for a regulation
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

(c) maximum administrative pecuniary ~~sanction~~fines 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

(d) in the case of a legal person, maximum administrative ~~pecuniary sanction~~fines 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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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

(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 1015 #

Proposal for a regulation
Article 94 – paragraph 1 a (new)

Member States shall provide that one or more of the following bodies, as determined by national law, also may, in the interests of consumers and in accordance with national law, take action before the courts or competent administrative bodies to ensure that this Regulation are applied: (a) public bodies or their representatives; (b) consumer organisations having a legitimate interest in protecting consumers; (c) professional organisations having a legitimate interest in acting to protect their members.

Amendment 1016 #

Proposal for a regulation
Title VII – Chapter 3 – title

3 Supervisory responsibilities of EBSMA on issuers of significant asset- referenced tokens and significant e-money tokens and colleges of supervisors

Amendment 1017 #

Proposal for a regulation
Article 98 – title

Supervisory responsibilities of EBSMA on issuers of significant asset-referenced tokens and issuers of significant e-money tokens

Amendment 1018 #

1. Where an asset-referenced token has been classified as significant in accordance with Article 39 or Article 40, the issuer of such asset-referenced tokens shall carry out their activities under the supervision of the EBSMA.

Amendment 1019 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 98 – paragraph 1 – subparagraph 2

The EBSMA shall exercise the powers of competent authorities conferred by Articles 21, 37 and 38 as regards issuers of significant asset-referenced tokens.

Amendment 102 #

Proposal for a regulation
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 1020 #

Proposal for a regulation
Article 98 – paragraph 3

3. Where an asset-referenced token has been classified as significant in accordance with Article 39, the EBSMA shall conduct a supervisory reassessment to ensure that issuers of significant asset- referenced tokens comply with the requirements under Title III.

Amendment 1021 #

Proposal for a regulation
Article 98 – paragraph 3 a (new)

3a. Where an e-money token is classified as significant under Article 50 or Article 51, issuers of such e-money tokens carry out their activity under the exclusive supervision of the EBA. The EBA executes the powers of competent authorities as granted to them in Articles 82, 92 and 93, with reference to issuers of significant e-money tokens.

Amendment 1022 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 98 – paragraph 4

4. Where an e-money token has been classified as significant in accordance with Articles 50 or 51, the EBSMA shall be responsible of the compliance of the issuer of such asset-significant e-money tokens with the requirements laid down in Article 52.

Amendment 1023 #

99 Colleges for issuers of significant asset-referenced tokens and significant e- money tokens

Amendment 1024 #

Proposal for a regulation
Article 99 – paragraph 1

1. Within 30 calendar days of a decision to classify an asset-referenced token as significant, the EBSMA shall establish, manage and chair a consultative supervisory college for each issuer of significant asset-referenced tokens to facilitate the exercise of its supervisory tasks under this Regulation.

Amendment 1025 #

Proposal for a regulation
Article 99 – paragraph 1 a (new)

1a. If the issuer of a significant asset- referenced token is also the issuer of a significant e-money token, there shall only be a single college to supervise the entire entity.

Amendment 1026 #

Proposal for a regulation
Article 99 – paragraph 2 – point a

(a) the EBSMA, as the chair of the college;

Amendment 1027 #

Proposal for a regulation
Article 99 – paragraph 2 – point b

(b) ESMBA;

Amendment 1028 #

Proposal for a regulation
Article 99 – paragraph 2 – point i

~~(i) the ECB;~~deleted

Amendment 1029 #

Proposal for a regulation
Article 99 – paragraph 2 – point k

(k) relevant supervisory authorities of third countries with which the EBSMA has concluded an administrative agreement in accordance with Article 108.

Amendment 103 #

Proposal for a regulation
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. Fulfilment of this obligation aims to ensure the protection of basic rights and freedoms within the Union, not to create unnecessary barriers on the crypto-asset market.

Amendment 1030 #

Proposal for a regulation
Article 99 – paragraph 5 – subparagraph 1 – point d

(d) the format and scope of the information to be provided by the EBSMA to the college members, especially with regard to the information to the risk assessment as referred to in Article 30(9);

Amendment 1031 #

Proposal for a regulation
Article 99 – paragraph 5 – subparagraph 2

The agreement may also determine tasks to be entrusted to the EBSMA or another member of the college.

Amendment 1032 #

Proposal for a regulation
Article 99 – paragraph 6 – subparagraph 1

6. In order to ensure the consistent and coherent functioning of colleges, the EBSMA shall, in cooperation with ESMBA and the European System of Central Banks, develop draft regulatory standards specifying the conditions under which the entities referred to in points (d) to (h) of paragraph 2 are to be considered as the most relevant and the details of the practical arrangements referred to in paragraph 5.

Amendment 1033 #

Proposal for a regulation
Article 99 – paragraph 6 – subparagraph 2

The EBSMA shall submit those draft regulatory standards to the Commission by [please insert date 12 months after the entry into force].

Amendment 1034 #

Proposal for a regulation
Article 100 – paragraph 1 – point i

(i) any delegation of supervisory tasks from the EBSMA to a competent authority pursuant to Article 120;

Amendment 1035 #

Proposal for a regulation
Article 100 – paragraph 2

2. Where the college issues an opinion accordance with paragraph 1, at the request of any member of the college and upon adoption by a majority of the college in accordance with paragraph 4, the opinion may include any recommendations aimed at addressing shortcomings of the envisaged action or measure envisaged by the EBSMA or the competent authorities.

Amendment 1036 #

Proposal for a regulation
Article 100 – paragraph 3

3. The EBSMA shall facilitate the adoption of the opinion in accordance with its general coordination function under Article 31 of Regulation (EU) No 1093/2010.

Amendment 1037 #

Proposal for a regulation
Article 100 – paragraph 4 – subparagraph 3

~~Where the ECB is a member of the college pursuant to Article 99(2), point (i), it shall have two votes.~~deleted

Amendment 1038 #

Proposal for a regulation
Article 100 – paragraph 4 – subparagraph 3

Where the ECB is a member of the college pursuant to Article 99(2), point (i), it shall have ~~two votes~~only a consultative, and not a binding vote on the opinion of the college. Where national banks of Member States are members of the college pursuant to Article 99(2), point (j), they shall only have a consultative, and not a binding vote on the opinion of the college.

Amendment 1039 #

Proposal for a regulation
Article 100 – paragraph 4 – subparagraph 3

Where the ECB is a member of the college pursuant to Article 99(2), point (i), it shall have ~~two~~one votes.

Amendment 104 #

Proposal for a regulation
Recital 34 a (new)

(34a) A significant proportion of crypto- asset service providers are deemed to have inadequate KYC and customer due diligence procedures pose increased risks of money laundering and terrorist financing. In 2019 the FATF adopted ‘the Travel Rule’ requiring all firms providing services in crypto-assets to obtain and hold required and accurate originator information and required beneficiary information on any transfers in crypto- assets, submit the information to beneficiary service provider and counterparts, if any, and make it available on request to the authorities. The Travel Rule has so far been implemented in a few jurisdictions, but not in the Union. With a view to stepping up the fight against money laundering and terrorist financing, the Union should ensure that crypto-asset service providers comply with stringent AML obligations, and that the Union AML regulatory framework is aligned with the FATF international standards on combating money laundering and the financing of terrorism.

Amendment 1040 #

Proposal for a regulation
Article 100 – paragraph 5

5. The EBSMA and competent authorities shall duly consider the opinion of the college reached in accordance with paragraph 1, including any recommendations aimed at addressing shortcomings of the envisaged action or supervisory measure envisaged on an issuer of significant asset-referenced tokens or on the entities and crypto-asset service providers referred to in points (d) to (h) of Article 99(2). Where the EBSMA or a competent authority does not agree with an opinion of the college, including any recommendations aimed at addressing shortcomings of the envisaged action or supervisory measure envisaged, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or recommendations.

Amendment 1041 #

Proposal for a regulation
Article 101 – paragraph 1 a (new)

1a. If the issuer of a significant e- money token is also the issuer of a significant asset-referenced token, there shall only be a single college to supervise the entire entity.

Amendment 1042 #

Proposal for a regulation
Article 101 – paragraph 2 – point a

(a) the EBSMA, as the Chair;

Amendment 1043 #

Proposal for a regulation
Article 101 – paragraph 2 – point c

Amendment 1044 #

Proposal for a regulation
Article 101 – paragraph 2 – point h

~~(h) where the issuer of significant e- money tokens is established in a Member State the currency of which is euro, or where the significant e-money token is referencing euro, the ECB;~~deleted

Amendment 1045 #

Proposal for a regulation
Article 101 – paragraph 2 – point j

(j) relevant supervisory authorities of third countries with which the EBSMA has concluded an administrative agreement in accordance with Article 108.

Amendment 1046 #

Proposal for a regulation
Article 101 – paragraph 6 – subparagraph 1

6. In order to ensure the consistent and coherent functioning of colleges, the EBSMA shall, in cooperation with ESMBA and the European System of Central Banks, develop draft regulatory standards specifying the conditions under which the entities referred to in points (d) to (g) of paragraph 2 are to be considered as the most relevant and the details of the practical arrangements referred to in paragraph 5.

Amendment 1047 #

Proposal for a regulation
Article 101 – paragraph 6 – subparagraph 2

The EBSMA shall submit those draft regulatory standards to the Commission by [please insert date 12 months after the entry into force].

Amendment 1048 #

Proposal for a regulation
Article 102 – paragraph 1 – point g

(g) any delegation of supervisory tasks from the competent authority of the issuer of significant e-money tokens to the EBSMA or another competent authority, or from the EBSMA to the competent authority in accordance with Article 120;

Amendment 1049 #

Proposal for a regulation
Article 102 – paragraph 2

2. Where the college issues an opinion in accordance with paragraph 1, at the request of any member of the college and upon adoption by a majority of the college in accordance with paragraph 4, the opinion may include any recommendations aimed at addressing shortcomings of the envisaged action or measure envisaged by the competent authorities or by the EBSMA.

Amendment 105 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 1050 #

Proposal for a regulation
Article 102 – paragraph 3

3. The EBSMA shall facilitate the adoption of the opinion in accordance with its general coordination function under Article 31 of Regulation (EU) No 1093/2010.

Amendment 1051 #

Proposal for a regulation
Article 102 – paragraph 4 – subparagraph 3

~~Where the ECB is a member of the college pursuant to point (h) of Article 101(2), it shall have 2 votes.~~deleted

Amendment 1052 #

Proposal for a regulation
Article 102 – paragraph 4 – subparagraph 3

Where the ECB is a member of the college pursuant to point (h) of Article 101(2), it shall have ~~2 votes~~only a consultative, and not a binding vote on the opinion of the college. Where national banks of Member States of the college pursuant to Article 101(2), point (I), they shall have only a consultative, and not a binding vote on the opinion of the college.

Amendment 1053 #

Proposal for a regulation
Article 102 – paragraph 4 – subparagraph 3

Where the ECB is a member of the college pursuant to point (h) of Article 101(2), it shall have ~~two~~one votes.

Amendment 1054 #

Proposal for a regulation
Article 102 – paragraph 5

5. The competent authority of the issuer of significant e-money tokens, EBSMA or any competent authority for the entities and crypto-asset service providers referred to in points (d) to (g) of Article 101(2) shall duly consider the opinion of the college reached in accordance with paragraph 1, including any recommendations aimed at addressing shortcomings of any envisaged action or supervisory measure. Where the EBSMA or a competent authority do not agree with an opinion of the college, including any recommendations aimed at addressing shortcomings of the envisaged action or supervisory measure, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or recommendations.

Amendment 1055 #

Proposal for a regulation
Title VII – Chapter 4 – title

4 the E~~BA’~~SMA's powers and competences on issuers of significant asset- referenced tokens and issuers of significant e-money tokens

Amendment 1056 #

Proposal for a regulation
Article 103

The powers conferred on the EBSMA by Articles 104 to 107, or on any official or other person authorised by the EBSMA, shall not be used to require the disclosure of information which is subject to legal privilege.

Amendment 1057 #

Proposal for a regulation
Article 104 – paragraph 1 – introductory part

1. In order to carry out its duties under Article 98, the EBSMA may by simple request or by decision require the following persons to provide all information necessary to enable the EBSMA to carry out its duties under this Regulation:

Amendment 1058 #

Proposal for a regulation
Article 104 – paragraph 3 – introductory part

3. When requiring to supply information under paragraph 1 by decision, the EBSMA shall:

Amendment 1059 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 104 – paragraph 3 – point g

(g) indicate the right to appeal the decision before the EBSMA’s Board of Appeal and to have the decision reviewed by the Court of Justice of the European Union (‘Court of Justice’) in accordance with Articles 60 and 61 of Regulation (EU) No 1093/2010.

Amendment 106 #

Proposal for a regulation
Recital 36

Amendment 1060 #

Proposal for a regulation
Article 104 – paragraph 5

5. The EBSMA shall without delay send a copy of the simple request or of its decision to the competent authority of the Member State where the persons referred to in paragraph 1 concerned by the request for information are domiciled or established.

Amendment 1061 #

Proposal for a regulation
Article 105 – paragraph 1 – subparagraph 1 – introductory part

1. In order to carry out its duties under Article 98 of this Regulation, EBSMA may conduct investigations on issuers of significant asset-referenced tokens and issuers of significant e-money tokens. To that end, the officials and other persons authorised by the EBSMA shall be empowered to:

Amendment 1062 #

Proposal for a regulation
Article 105 – paragraph 2

2. The officials and other persons authorised by the EBSMA for the purposes of the investigations referred to in paragraph 1 shall exercise their powers upon production of a written authorisation specifying the subject matter and purpose of the investigation. That authorisation shall also indicate the periodic penalty payments provided for in Article 114 where the production of the required records, data, procedures or any other material, or the answers to questions asked to issuers of significant asset-referenced tokens or issuers of significant e-money tokens are not provided or are incomplete, and the fines provided for in Article 113, where the answers to questions asked to issuers of significant asset-referenced tokens or issuers of significant e-money tokens are incorrect or misleading.

Amendment 1063 #

Proposal for a regulation
Article 105 – paragraph 3

3. The issuers of significant asset- referenced tokens and issuers of significant e-money tokens are required to submit to investigations launched on the basis of a decision of the EBSMA. The decision shall specify the subject matter and purpose of the investigation, the periodic penalty payments provided for in Article 114, the legal remedies available under Regulation (EU) No 1093/2010 and the right to have the decision reviewed by the Court of Justice.

Amendment 1064 #

Proposal for a regulation
Article 105 – paragraph 4

4. In due time before an investigation referred to in paragraph 1, the EBSMA shall inform the competent authority of the Member State where the investigation is to be carried out of the investigation and of the identity of the authorised persons. Officials of the competent authority concerned shall, upon the request of the EBSMA, assist those authorised persons in carrying out their duties. Officials of the competent authority concerned may also attend the investigations upon request.

Amendment 1065 #

Proposal for a regulation
Article 105 – paragraph 6 – point a

(a) the decision adopted by the EBSMA referred to in paragraph 3 is authentic;

Amendment 1066 #

Proposal for a regulation
Article 105 – paragraph 7

7. For the purposes of point (b) paragraph 6, the national judicial authority may ask the EBSMA for detailed explanations, in particular relating to the grounds the EBSMA has for suspecting that an infringement of this Regulation has taken place and the seriousness of the suspected infringement and the nature of the involvement of the person subject to the coercive measures. However, the national judicial authority shall not review the necessity for the investigation or demand that it be provided with the information on the EBSMA’s file. The lawfulness of the EBSMA’s decision shall be subject to review only by the Court of Justice following the procedure set out in Regulation (EU) No 1093/2010.

Amendment 1067 #

Proposal for a regulation
Article 106 – paragraph 1 – subparagraph 1

1. In order to carry out its duties under Article 98 of this Regulation, the EBSMA may conduct all necessary on-site inspections at any business premises of the issuers of significant asset-referenced tokens and issuers of significant e-money tokens.

Amendment 1068 #

Proposal for a regulation
Article 106 – paragraph 2

2. The officials and other persons authorised by the EBSMA to conduct an on- site inspection may enter any business premises of the persons subject to an investigation decision adopted by the EBSMA and shall have all the powers stipulated in Article 105(1). They shall also have the power to seal any business premises and books or records for the period of, and to the extent necessary for, the inspection.

Amendment 1069 #

Proposal for a regulation
Article 106 – paragraph 3

3. In due time before the inspection, the EBSMA shall give notice of the inspection to the competent authority of the Member State where the inspection is to be conducted. Where the proper conduct and efficiency of the inspection so require, the EBSMA, after informing the relevant competent authority, may carry out the on- site inspection without prior notice to the issuer of significant asset-referenced tokens or the issuer of significant e-money tokens.

Amendment 107 #

Proposal for a regulation
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. In any case, it is recognised that excessive and disproportionate capital requirements may make the Union crypto-asset environment less attractive compared with rival external markets. There should be a sensible central management mechanism at a Union level in terms of openness of the market to new players and the avoidance of non-competitive regulation imposed at a regional level.

Amendment 1070 #

Proposal for a regulation
Article 106 – paragraph 4

4. The officials and other persons authorised by the EBSMA to conduct an on- site inspection shall exercise their powers upon production of a written authorisation specifying the subject matter and purpose of the inspection and the periodic penalty payments provided for in Article 114 where the persons concerned do not submit to the inspection.

Amendment 1071 #

Proposal for a regulation
Article 106 – paragraph 5

5. The issuer of significant asset- referenced tokens or the issuer of significant e-money tokens shall submit to on-site inspections ordered by decision of the EBSMA. The decision shall specify the subject matter and purpose of the inspection, appoint the date on which it is to begin and indicate the periodic penalty payments provided for in Article 114, the legal remedies available under Regulation (EU) No 1093/2010 as well as the right to have the decision reviewed by the Court of Justice.

Amendment 1072 #

Proposal for a regulation
Article 106 – paragraph 6

6. Officials of, as well as those authorised or appointed by, the competent authority of the Member State where the inspection is to be conducted shall, at the request of the EBSMA, actively assist the officials and other persons authorised by the EBSMA. Officials of the competent authority of the Member State concerned may also attend the onsite inspections.

Amendment 1073 #

Proposal for a regulation
Article 106 – paragraph 7

7. The EBSMA may also require competent authorities to carry out specific investigatory tasks and on-site inspections as provided for in this Article and in Article 105(1) on its behalf.

Amendment 1074 #

Proposal for a regulation
Article 106 – paragraph 8

8. Where the officials and other accompanying persons authorised by the EBSMA find that a person opposes an inspection ordered pursuant to this Article, the competent authority of the Member State concerned shall afford them the necessary assistance, requesting, where appropriate, the assistance of the police or of an equivalent enforcement authority, so as to enable them to conduct their on-site inspection.

Amendment 1075 #

Proposal for a regulation
Article 106 – paragraph 10 – point a

(a) the decision adopted by the EBSMA referred to in paragraph 4 is authentic;

Amendment 1076 #

Proposal for a regulation
Article 106 – paragraph 11

11. For the purposes of paragraph 10, point (b), the national judicial authority may ask the EBSMA for detailed explanations, in particular relating to the grounds the EBSMA has for suspecting that an infringement of this Regulation has taken place and the seriousness of the suspected infringement and the nature of the involvement of the person subject to the coercive measures. However, the national judicial authority shall not review the necessity for the investigation or demand that it be provided with the information on the EBSMA’s file. The lawfulness of the EBSMA’s decision shall be subject to review only by the Court of Justice following the procedure set out in Regulation (EU) No 1093/2010.

Amendment 1077 #

Proposal for a regulation
Article 107 – introductory part

In order to carry out its duties under Article 98 and without prejudice to Article 84, the EBSMA and the competent authorities shall provide each other with the information required for the purposes of carrying out their duties under this Regulation without undue delay. For that purpose, competent authorities shall exchange with the EBSMA any information related to:

Amendment 1078 #

Proposal for a regulation
Article 108 – title

Administrative agreements on exchange of information between the EBSMA and third countries

Amendment 1079 #

Proposal for a regulation
Article 108 – paragraph 1

1. In order to carry out its duties under Article 98, the EBSMA may conclude administrative agreements on exchange of information with the supervisory authorities of third countries only if the information disclosed is subject to guarantees of professional secrecy which are at least equivalent to those set out in Article 111.

Amendment 108 #

Proposal for a regulation
Recital 37

(37) In order to stabilise the value of their asset-referenced tokens, issuers of asset-referenced tokens should constitute and maintain a reserve of assets backing those crypto-assets at all times. Issuers of asset-referenced tokens should ensure the prudent management of such a reserve of assets and should in particular ensure that the creation and destruction of asset- referenced tokens are always matched by a corresponding increase or decrease in the reserve assets and that such increase or decrease is adequately managed to avoid adverse impacts on the market of the reserve assets. Issuers of asset-~~back~~referenced crypto-assets should therefore establish, maintain and detail policies that describe, inter alia, the composition of the reserve assets, the allocation of assets, the comprehensive assessment of the risks raised by the reserve assets, the procedure for the creation and destruction of the asset-referenced tokens, the procedure to purchase and redeem the asset-referenced tokens against the reserve assets and, where the reserve assets are invested, the investment policy that is followed by the issuer.

Amendment 1080 #

Proposal for a regulation
Article 108 – paragraph 2

2. Exchange of information referred to in paragraph 1 shall be intended for the performance of the tasks of the EBSMA or those supervisory authorities.

Amendment 1081 #

Proposal for a regulation
Article 108 – paragraph 3

3. With regard to transfer of personal data to a third country, the EBSMA shall apply Regulation (EU) No 2018/1725.

Amendment 1082 #

Proposal for a regulation
Article 109

The EBSMA may disclose the information received from supervisory auth -orities of third countries only where the EBSMA or a competent authority has obtained the express agreement of the supervisory authority that has transmitted the information and, where applicable, the information is disclosed only for the purposes for which that supervisory authority gave its agreement or where such disclosure is necessary for legal proceedings.

Amendment 1083 #

Proposal for a regulation
Article 110

Where an issuer of significant asset- referenced tokens or an issuer of significant e-money tokens engages in activities other than those covered by this Regulation, the EBSMA shall cooperate with the authorities responsible for the supervision or oversight of such other activities as provided for in the relevant Union or national law, including tax authorities.

Amendment 1084 #

Proposal for a regulation
Article 111

The obligation of professional secrecy shall apply to the EBSMA and all persons who work or who have worked for the EBSMA or for any other person to whom the EBSMA has delegated tasks, including auditors and experts contracted by the EBSMA.

Amendment 1085 #

Proposal for a regulation
Article 112 – title

Supervisory measures by the EBSMA

Amendment 1086 #

Proposal for a regulation
Article 112 – paragraph 1 – introductory part

1. Where the EBSMA finds that an issuer of a significant asset-referenced tokens has committed one of the infringements listed in Annex V, it may take one or more of the following actions:

Amendment 1087 #

Proposal for a regulation
Article 112 – paragraph 2 – introductory part

2. Where the EBSMA finds that an issuer of a significant e-money tokens has committed one of the infringements listed in Annex VI, it may take one or more of the following actions:

Amendment 1088 #

Proposal for a regulation
Article 112 – paragraph 3 – introductory part

3. When taking the actions referred to in paragraphs 1 and 2, the EBSMA shall take into account the nature and seriousness of the infringement, having regard to the following criteria:

Amendment 1089 #

Proposal for a regulation
Article 112 – paragraph 4

4. Before taking the actions referred in points (d) to (g) and point (j) of paragraph 1, the EBSMA shall inform ESMBA and, where the significant asset-referenced tokens refers Union currencies, the central banks of issues of those currencies.

Amendment 109 #

(37) In order to stabilise the value of their asset-referenced tokens, issuers of asset-referenced tokens should constitute and maintain a reserve of assets backing those crypto-assets at all times. Such reserve constitutes a guarantee to the issuer liability represented by the asset- referenced token. Issuers of asset- referenced tokens should ensure the prudent management of such a reserve of assets and should in particular ensure that the creation and destruction of asset- referenced tokens are always matched by a corresponding increase or decrease in the reserve assets and that such increase or decrease is adequately managed to avoid adverse impacts on the market of the reserve assets. Issuers of asset-backed crypto-assets should therefore establish, maintain and detail policies that describe, inter alia, the composition of the reserve assets, the allocation of assets, the comprehensive assessment of the risks raised by the reserve assets, the procedure for the creation and destruction of the asset-referenced tokens, the procedure to purchase and redeem the asset-referenced tokens against the reserve assets and, where the reserve assets are invested, the investment policy that is followed by the issuer.

Amendment 1090 #

Proposal for a regulation
Article 112 – paragraph 5

5. Before taking the actions referred in points (a) to (c) of paragraph 2, the EBSMA shall inform the competent authority of the issuer of significant e-money tokens and the central bank of issue of the currency that the significant e-money token is referencing.

Amendment 1091 #

Proposal for a regulation
Article 112 – paragraph 6

6. The EBSMA shall notify any action 6. taken pursuant to paragraph 1 and 2 to the issuer of significant asset-referenced tokens or the issuer of significant e-money tokens responsible for the infringement without undue delay and shall communicate that action to the competent authorities of the Member States concerned and the Commission. The EBSMA shall publicly disclose any such decision on its website within 10 working days from the date when that decision was adopted.

Amendment 1092 #

Proposal for a regulation
Article 112 – paragraph 7 – point c

(c) a statement asserting that it is possible for EBASMA ’s Board of Appeal to suspend the application of the contested decision in accordance with Article 60(3) of Regulation (EU) No 10935/2010.

Amendment 1093 #

Proposal for a regulation
Article 113 – paragraph 4

4. For issuers of significant e-money tokens, the maximum amount of the fine referred to in paragraph 1 shall up to 15% of the annual turnover, as defined under relevant Union law, in the preceding business year, or twice the amount or profits gained or losses avoided because of the infringement where those can be determined.

Amendment 1094 #

Proposal for a regulation
Article 114 – paragraph 1 – introductory part

1. The EBSMA shall, by decision, impose periodic penalty payments in order to compel:

Amendment 1095 #

Proposal for a regulation
Article 114 – paragraph 4

4. A periodic penalty payment shall be imposed for a maximum period of six months following the notification of the EBA’s decision. Following the end of the period, the EBSMA shall review the measure.

Amendment 1096 #

Proposal for a regulation
Article 115 – paragraph 1

1. The EBSMA shall disclose to the 1. public every fine and periodic penalty payment that has been imposed pursuant to Articles 113 and 114 unless such disclosure to the public would seriously jeopardise the financial stability or cause disproportionate damage to the parties involved. Such disclosure shall not contain personal data within the meaning of Regulation (EU) 2016/679172 . _________________ 72Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

Amendment 1097 #

Proposal for a regulation
Article 115 – paragraph 3

3. Where the EBSMA decides to impose no fines or penalty payments, it shall inform the European Parliament, the Council, the Commission, and the competent authorities of the Member State concerned accordingly and shall set out the reasons for its decision.

Amendment 1098 #

Proposal for a regulation
Article 116 – paragraph 1

1. Where, in carrying out its duties under Articles 98, the EBSMA finds that there are serious indications of the possible existence of facts liable to constitute one or more of the infringements listed in Annexes V or VI, the EBSMA shall appoint an independent investigation officer within the EBSMA to investigate the matter. The appointed officer shall not be involved or have been directly or indirectly involved in the supervision of the issuers of significant asset-referenced tokens or issuers of significant e-money tokens and shall perform its functions independently from the EBSMA.

Amendment 1099 #

Proposal for a regulation
Article 116 – paragraph 2

2. The investigation officer referred to in paragraph 1 shall investigate the alleged infringements, taking into account any comments submitted by the persons who are subject to the investigations, and shall submit a complete file with his findings to EBSMA.

Amendment 110 #

Proposal for a regulation
Recital 38

(38) To prevent the risk of loss for asset- referenced tokens and to preserve the value of those assets issuers of asset-referenced tokens should have an adequate custody policy for reserve assets. That policy should ensure that the reserve assets are entirely segregated from the issuer’s own assets at all times, that the reserve assets are not encumbered or pledged as collateral, and that the issuer of asset- referenced tokens has prompt access to those reserve assets. The reserve assets should, depending on their nature, be kept in custody either by a credit institution within the meaning of Regulation (EU) No 575/2013, an authorised investment firm that specialises in the safe-keeping of assets or by an authorised crypto-asset service provider. Credit institutions or crypto-asset service providers that keep in custody the reserve assets that back the asset-referenced tokens should be responsible for the loss of such reserve assets vis-à-vis the issuer or the holders of asset-referenced tokens, unless they prove that such loss has arisen from an external event beyond reasonable control.

Amendment 1100 #

Proposal for a regulation
Article 116 – paragraph 4

4. Where carrying out his tasks, the investigation officer shall have access to all documents and information gathered by the EBSMA in its supervisory activities.

Amendment 1101 #

Proposal for a regulation
Article 116 – paragraph 5

5. Upon completion of his or her investigation and before submitting the file with his findings to the EBSMA, the investigation officer shall give the persons subject to the investigations the opportunity to be heard on the matters being investigated. The investigation officer shall base his or her findings only on facts on which the persons concerned have had the opportunity to comment.

Amendment 1102 #

Proposal for a regulation
Article 116 – paragraph 7

7. When submitting the file with his findings to the EBSMA, the investigation officer shall notify the persons who are subject to the investigations. The persons subject to the investigations shall be entitled to have access to the file, subject to the legitimate interest of other persons in the protection of their business secrets. The right of access to the file shall not extend to confidential information affecting third parties or the EBSMA’s internal preparatory documents.

Amendment 1103 #

Proposal for a regulation
Article 116 – paragraph 8

8. On the basis of the file containing the investigation officer’s findings and, when requested by the persons subject to the investigations, after having heard those persons in accordance with Article 117, the EBSMA shall decide if one or more of the infringements of provisions listed in Annex V or VI have been committed by the issuer of significant asset-referenced tokens or the issuer of significant e-money tokens subject to the investigations and, in such a case, shall take a supervisory measure in accordance with Article 112 and/or impose a fine in accordance with Article 113.

Amendment 1104 #

Proposal for a regulation
Article 116 – paragraph 9

9. The investigation officer shall not participate in EBSMA’s deliberations or in any other way intervene in EBSMA’s decision- making process.

Amendment 1105 #

Proposal for a regulation
Article 116 – paragraph 11

11. The EBSMA shall refer matters to the appropriate national authorities for investigation and possible criminal prosecution where, in carrying out its duties under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute criminal offences. In addition, the EBSMA shall refrain from imposing fines or periodic penalty payments where a prior acquittal or conviction arising from identical fact or facts which are substantially the same has already acquired the force of res judicata as the result of criminal proceedings under national law.

Amendment 1106 #

Proposal for a regulation
Article 116 a (new)

Article 116a EBA intervention powers 1. EBA may suspend the offer to the public or prohibit the trading of e-money tokens, in circumstances, or be subject to exceptions, to be specified by EBA, where the following conditions are fulfilled: (a) this Regulation has been infringed or there are reasonable grounds for suspecting that this Regulation has been infringed or the proposed action addresses a significant consumer or investor protection concern or a threat to the orderly functioning and integrity of financial markets; (b) a competent authority or competent authorities have not taken action or the actions that have been taken do not adequately address the threat. Where the conditions set out in the first subparagraph are fulfilled, EBA may impose the prohibition or restriction referred to in paragraph 1 on a precautionary basis before a significant e- money or asset referenced token has been marketed, distributed or sold. 2. Before deciding to take any action under this Article, EBA shall notify competent authorities of the action it proposes. 3. EBA shall publish on its website notice of any decision to take any action under this Article. The notice shall specify details of the prohibition or restriction and specify a time after the publication of the notice from which the measures will take effect. A prohibition or restriction shall only apply to action taken after the measures take effect. 4. Action adopted by EBA under this Article shall prevail over any previous action taken by a competent authority.

Amendment 1107 #

Proposal for a regulation
Article 117 – paragraph 1

1. Before taking any decision pursuant to Articles 112, 113 and 114, the EBSMA shall give the persons subject to the proceedings the opportunity to be heard on its findings. The EBSMA shall base its decisions only on findings on which the persons subject to the proceedings have had an opportunity to comment.

Amendment 1108 #

Proposal for a regulation
Article 117 – paragraph 2

2. Paragraph 1 shall not apply if urgent action is needed in order to prevent significant and imminent damage to the financial stability or consumer protection. In such a case the EBSMA may adopt an interim decision and shall give the persons concerned the opportunity to be heard as soon as possible after taking its decision.

Amendment 1109 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 117 – paragraph 3

3. The rights of the defence of the persons subject to investigations shall be fully respected in the proceedings. They shall be entitled to have access to the EBESMA’s file, subject to the legitimate interest of other persons in the protection of their business secrets. The right of access to the file shall not extend to confidential information or the EBSMA’s internal preparatory documents.

Amendment 111 #

Proposal for a regulation
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 1110 #

Proposal for a regulation
Article 119 – paragraph 1

1. The EBSMA shall charge fees to the issuers of significant asset-referenced tokens and the issuers of significant e- money tokens in accordance with this Regulation and in accordance with the delegated acts adopted pursuant to paragraph 3. Those fees shall cover the EBSMA’s expenditure relating to the supervision of issuers of significant asset- referenced tokens and the supervision of issuers of significant e-money token issuers in accordance with Article 98, as well as the reimbursement of costs that the competent authorities may incur carrying out work pursuant to this Regulation, in particular as a result of any delegation of tasks in accordance with Article 120.

Amendment 1111 #

Proposal for a regulation
Article 119 – paragraph 2 – subparagraph 1

2. The amount of the fee charged to an individual issuer of significant asset- referenced tokens shall be proportionate to the size of its reserve assets and shall cover all costs incurred by the EBSMA for the performance of its supervisory tasks in accordance with this Regulation.

Amendment 1112 #

Proposal for a regulation
Article 119 – paragraph 2 – subparagraph 2

The amount of the fee charged to an individual issuer of significant e-money tokens shall be proportionate to the size of the e-money issued in exchanged of funds and shall cover all costs incurred by the EBSMA for the performance of its supervisory tasks in accordance with this Regulation.

Amendment 1113 #

Proposal for a regulation
Article 119 – paragraph 3

3. The Commission shall adopt a delegated act in accordance with Article 121 by [please insert date 12 months after entry into force] to specify the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid and the methodology to calculate the maximum amount per entity under paragraph 2 that can be charged by the EBSMA.

Amendment 1114 #

Proposal for a regulation
Article 120 – title

Delegation of tasks by the EBSMA to competent authorities

Amendment 1115 #

Proposal for a regulation
Article 120 – paragraph 1

1. Where necessary for the proper performance of a supervisory task for issuers of significant asset-referenced tokens or significant e-money tokens, the EBSMA may delegate specific supervisory tasks to the competent authority of a Member State. Such specific supervisory tasks may, in particular, include the power to carry out requests for information in accordance with Article 104 and to conduct investigations and on-site inspections in accordance with Article 105 and Article 106.

Amendment 1116 #

Proposal for a regulation
Article 120 – paragraph 2 – introductory part

2. Prior to delegation of a task, the EBSMA shall consult the relevant competent authority about:

Amendment 1117 #

Proposal for a regulation
Article 120 – paragraph 2 – point c

Amendment 1118 #

Proposal for a regulation
Article 120 – paragraph 3

3. In accordance with the regulation on fees adopted by the Commission pursuant to Article 119(3), the EBSMA shall reimburse a competent authority for costs incurred as a result of carrying out delegated tasks.

Amendment 1119 #

Proposal for a regulation
Article 122 – title

~~Report~~Evaluation report and review

Amendment 112 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
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 ~~and credit~~, credit and concentration 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 1120 #

Proposal for a regulation
Article 122 – paragraph 1

1. By … [3618 months after the date of entry into force of this Regulation] after consulting the EBA and ESMA, the Commission shall present a report to the European Parliament and the Council on the application of this Regulation, where appropriate accompanied by a legislative proposal.

Amendment 1121 #

Proposal for a regulation
Article 122 – paragraph 1

1. By … [36 months after the date of entry into force of this Regulation] after consulting the EBA and ESMA and taking into account the findings of their annual reports, the Commission shall present a report to the European Parliament and the Council on the application and implementation of this Regulation, and on the compliance with its obligations and requirements. The report shall where appropriate be accompanied by a legislative proposal.

Amendment 1122 #

Proposal for a regulation
Article 122 – paragraph 2 – point b a (new)

(ba) an estimation of the number of EU residents using or investing in crypto- assets issued and offered outside the EU;

Amendment 1123 #

Proposal for a regulation
Article 122 – paragraph 2 – point c

(c) the number and value of fraud, ~~hack~~scams, hacks, ransomwares and thefts of crypto-assets reported in the EU, types of fraudulent behaviour, the number of complaints received by crypto-asset service providers and issuers of asset-referenced tokens, the number of complaints received by competent authorities and the subjects of the complaints received;

Amendment 1124 #

Proposal for a regulation
Article 122 – paragraph 2 – point i a (new)

(ia) an assessment of the enforcement and effectiveness of the obligations laid down in this Regulation, including any infringement of the requirement for third- country firms providing crypto-assets services to persons established in the Union to be authorised as crypto-assets service providers in accordance with this Regulation; (ib) an assessment of possible measures and effective and dissuasive sanctions to prevent third country actors to offer crypto-asset services to persons established in the Union without authorisation, to prevent circumvention of this Regulation and with a view to ensure consumer and investor protection;

Amendment 1125 #

Proposal for a regulation
Article 122 – paragraph 2 – point i b (new)

(ib) an assessment of fraudulent marketing communications and scams involving crypto-assets occurring through social media networks;

Amendment 1126 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 122 – paragraph 2 – point i c (new)

(ic) an assessment of the level of threat of money laundering, terrorist financing and other criminal activity in relation to crypto-assets channelled through decentralised finance systems and the necessity and feasibility to establish appropriate and effective measures, including transactional restrictions on payments in crypto-assets for goods and services involving payments above a de minimis thresholds, stronger intelligence channels and a regime of effective, proportionate and dissuasive sanctions to prevent illicit transactions in crypto-assets;

Amendment 1127 #

Proposal for a regulation
Article 122 – paragraph 2 – point j

(j) an assessment of whether the scope of crypto-asset services covered by this Regulation is appropriate and whether any adjustment to the definitions set out in this Regulation is needed, and whether any additional innovative crypto-asset forms would need to be added to this regulation;

Amendment 1128 #

Proposal for a regulation
Article 122 – paragraph 2 – point j a (new)

(ja) an assessment of whether the prudential requirements for crypto-assets service providers are appropriate and whether they should be aligned with the requirements for initial capital and own funds applicable to investment firms under Regulation (EU) 2019/2033 and Directive 2019/2034/EU;

Amendment 1129 #

Proposal for a regulation
Article 122 – paragraph 2 – point j a (new)

(ja) an assessment of the appropriateness of the thresholds to determine significant asset-referenced tokens and significant e-money tokens set out in Article 39 of this regulation;

Amendment 113 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Pedro MARQUES, Victor NEGRESCU

Proposal for a regulation
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 informIssuers of asset-referenced tokens should provide 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 tokenswith redemption rights. Issuers should make available to the holders of asset-referenced tokens sufficiently detailed and easily understandable information about the procedures governing the redemption.

Amendment 1130 #

Proposal for a regulation
Article 122 – paragraph 2 – point j a (new)

(ja) an assessment of the impact of this regulation on decentralised finance applications.

Amendment 1131 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Jonás FERNÁNDEZ

Proposal for a regulation
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 1132 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 122 – paragraph 2 – point q

(q) an evaluation of the cooperation between the competent authorities, the EBA and ESMA, and an assessment of advantages and disadvantages of the competent authorities and the EBSMA being responsible for supervision under this Regulation;

Amendment 1133 #

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 1136 #

Proposal for a regulation
Article 122 – paragraph 2 a (new)

2a. Every year thereafter, the ESMA shall present a brief report on the state of European markets in crypto assets describing the most important statistics, trends and risks.

Amendment 1137 #

Proposal for a regulation
Article -122 a (new)

Article -122a ESMA annual report on market developments By [12 months from the date of application of this Regulation] and every year thereafter, the ESMA, in close cooperation with the EBA, shall submit a report to the European Parliament and to the Council on the application of this Regulation and the developments in the markets in crypto-assets. The reports shall be made publicly available. The report shall include the following elements: a) the number of issuances of crypto- assets in the EU, the number of crypto- asset white papers registered with the competent authorities, the type of crypto- assets issued and their market capitalisation, the number of crypto-assets admitted to trading on a trading platform for crypto-assets; b) the number of issuers of asset- referenced tokens authorised under this Regulation, and an analysis of the categories of assets included in the reserves, the size of the reserves and the volume of payments in asset-referenced tokens; c) the number of issuers of e-money tokens authorised under this Regulation and under Directive 2009/110/EC, and an analysis of the currencies backing the e- money tokens, the size of the reserves and the volume of payments in e-money tokens; e) the number of issuers of significant e- money tokens authorised under this Regulation and under Directive 2009/110/EC, and an analysis of the currencies backing the significant e- money tokens, the size of the reserves and the volume of payments in significant e- money tokens; f) an estimation of the number of EU residents using or investing in crypto- assets issued in the EU; g) an estimation of the number of EU residents using or investing in crypto- assets issued and offered by crypto-assets service providers outside the EU; h) a mapping of the geographical location and level of KYC and customer due diligence procedures of unauthorised exchanges providing services in crypto- assets to EU residents, including number of exchanges without a clear domiciliation and number of exchanges located in jurisdictions included in the EU AML/CFT list of high-risk third countries or in the list of non-cooperative jurisdictions for tax purposes, classified by level of compliance with adequate KYC procedures; i) volume of transactions in decentralised finance protocols and decentralised exchanges, accompanied by an analysis of risks posed for money laundering, terrorist financing and other criminal activities; j) proportion of transactions in crypto- assets that occur through a crypto asset service provider or unauthorised service provider or peer-to-peer, and transaction volume; k) the number and value of fraud, scams, hacks, cyberattacks, ransomwares, thefts or losses of crypto-assets reported in the EU, types of fraudulent behaviour, the number of complaints received by crypto- asset service providers and issuers of asset-referenced tokens, the number of complaints received by competent authorities and the subjects of the complaints received; l) number of complaints received by crypto-asset service providers, issuers of crypto-assets and national competent authorities in relation to false and misleading information contained in the crypto-asset key information sheet or in marketing communications, including via social media platforms; m) possible approaches and options, based on best practices and reports by relevant international organisations, to mitigate financial crime risks and illicit activity connected with the use of crypto- assets. n) possible approaches and options, based on best practices and reports by relevant international organisations, to contain and sanction the circumvention of the standards of this Regulation by third- country actors providing crypto-asset services in the Union without authorisation. Member States and EBA shall provide the ESMA with the information necessary for the preparation of the report. For the purpose of the report, the Commission may request information from law enforcement agencies.

Amendment 1138 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 122 b (new)

Article 122b Commission report on a EU list of banned crypto-addresses and non-compliant entities By … [12 months after the date of entry into force of this Regulation], with a view to strengthen the fight against financial crime and ensure that financial institutions, firms, crypto-assets service providers and other obliged entities under the scope of the European AML legislation do not engage in unauthorized transactions or facilitate criminal activities, the Commission shall assess the possibility of creating a central EU List of banned addresses, persons and entities, including crypto-assets wallet addresses owned or associated with persons, groups and entities which are subject to European sanctions, which should integrate the ESMA list of non-compliant crypto-asset service providers. The Commission shall also assess how the use of smart contracts can be integrated in the AML/CFT framework to ensure compliance with AML obligations, facilitate due diligence procedures and prevent transactions with listed addresses.

Amendment 1139 #

Proposal for a regulation
Article 123

1. Articles 4 to 14 shall not apply to crypto-assets, other than asset-referenced tokens and e-money tokens, which were offered to the public in the Union or admitted to trading on a trading platform for crypto-assets before [please insert date of entry into application]. 2. By way of derogation from this Regulation, crypto-asset service providers which provided their services in accordance with applicable law before [please insert the date of entry into application], may continue to do so until [please insert the date 18 months after the date of application] or until they are granted an authorisation pursuant to Article 55, whichever is sooner. 3. By way of derogation from Articles 54 and 55, Member States may apply a simplified procedure for applications for an authorisation which are submitted between the [please insert the date of application of this Regulation] and [please insert the date 18 months after the date of application] by entities that, at the time of entry into force of this Regulation, were authorised under national law to provide crypto-asset services. The competent authorities shall ensure that the requirements laid down in Chapters 2 and 3 of Title IV are complied with before granting authorisation pursuant to such simplified procedures. 4. The EBA shall exercise its supervisory responsibilities pursuant to Article 98 from the date of the entry into application of the delegated acts referred to in Article 39(6). 123 deleted Transitional measures

Amendment 114 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 1140 #

Proposal for a regulation
Article 123 – paragraph 1

1. ~~Articles 4 to 14 shall not apply to c~~Crypto-assets, other than asset- referenced tokens and e-money tokens, which were offered to the public in the Union or admitted to trading on a trading platform for crypto-assets before [please insert date of entry into application]. shall comply with Articles 4 to 14 if they want to continue to be admitted to trading. By way of derogation from this Regulation, for crypto-assets, other than asset-referenced tokens and e-money tokens, which were admitted to trading on a trading platform for crypto-assets before [please insert date of entry into application of this Regulation], a crypto- asset service provider operating a trading platform shall: a) provide or draft a crypto-asset information sheet in accordance with Article 4a; b) comply with the applicable requirements laid down in Articles 5 to 11; and c) be liable for the information provided in the key information sheet they drafted in accordance with Article 14.

Amendment 1141 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 123 – paragraph 1

Amendment 1142 #

Proposal for a regulation
Article 123 – paragraph 1

1. By way of derogation from this Regulation and for a temporary period of six months from the entry into force of this Regulation, Articles 4 to 14 shall not apply to crypto-assets, other than asset- referenced tokens and e-money tokens, which were ~~offered to the public~~publicly offered in the Union or admitted to trading on a trading platform for crypto-assets ~~before [please insert date of entry into application]~~in the case of crypto- assets not subject to Articles 4 to 14.

Amendment 1143 #

Proposal for a regulation
Article 123 – paragraph 2 a (new)

2a. By way of derogation from this Regulation, crypto-assets that are issued or made available and/or traded in the EU or admitted for trading on a trading platform for crypto-assets on or after [please insert the date of entry into application] in accordance with the laws applicable to such crypto-assets prior to the date of application of this Regulation, may continue to be offered and/or traded for a period until [please insert the date 18 months after the date of application] or until they are granted or finally refused an authorization in accordance with this Regulation provided that the offeror of such crypto-assets has applied for authorization not later than [please insert the date 18 months after the date of application].

Amendment 1144 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 123 – paragraph 2 a (new)

2a. By way of derogation from this Regulation, crypto-assets that are issued or made available and/or traded in the EU or admitted to trading on a trading platform for crypto-assets on or after [please insert the date of entry into application of this Regulation] in accordance with the laws applicable to such crypto assets prior to the date of application of this Regulation, may continue to do so until [please insert date 18 months after the date of application of this Regulation].

Amendment 1145 #

Proposal for a regulation
Article 123 a (new)

Article 123a Amendment of Directive 2014/57/EU Directive 2014/57/EU is amended as follows: In Article 1, paragraph 2, point (da) is added: da) a crypto-asset admitted to trading or for which a request for admission to trading to a crypto-asset service provider has been made;

Amendment 1146 #

Proposal for a regulation
Article 123 b (new)

Article 123b Amendment of Directive (EU) 2015/849 Directive (EU) 2015/849 is amended as follows: In Article 2, point (gh) is added: other crypto-asset service providers as defined in Article 2 of Regulation (EU) …./… of the European Parliament and of the Council of … on Markets in Crypto- Assets (EU) 2021/XXX In Article 2, point (ea) is added: other persons trading in goods to the extent that payments are made or received in crypto-assets of whatever form in an amount of EUR 10 000 or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked;

Amendment 1147 #

Proposal for a regulation
Article 123 c (new)

Article 123c Amendment to Regulation 2019/2088/EU[Sustainability-related disclosures Regulation] Regulation 2019/2088 is amended as follows: In Article 2 point 1 the following item is added: ja) a crypto-asset service provider which provides portfolio management as defined in point (17a) of Article 3 of Regulation (EU) …./… of the European Parliament and of the Council of … on Markets in Crypto-Assets (EU) 2021/XXX. In Article 2 point 11 the following item is added: (da) a crypto-asset service provider which provides investment advice as defined in point (17) of Article 3 of Regulation (EU) …./… of the European Parliament and of the Council of … on Markets in Crypto- Assets (EU) 2021/XXX. In Article 2 point 12 the following item is added: ga) an issuer of crypto-assets as defined in point (6) of Article 3 of Regulation (EU) …./… of the European Parliament and of the Council of … on Markets in Crypto- Assets(EU) 2021/XXX.

Amendment 1148 #

Proposal for a regulation
Article 126 – paragraph 2

2. This Regulation shall apply from [please insert date 186 months after the date of entry into force].

Amendment 1149 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 126 – paragraph 3

~~3. However, the provisions laid down in Title III and Title IV shall apply from [please insert the date of the entry into force].~~deleted

Amendment 115 #

Proposal for a regulation
Recital 41

(41) To ensure that asset-referenced tokens are mainly used as a means of exchange and not as a store of value, issuers of asset-referenced tokens, and any crypto-asset service providers, should not grant interests to users of asset- referenced tokens for time such users are holding those asset-referenced tokens. Some asset-referenced tokens and e-money tokens should be considered significant due to the potential large customer base of their promoters and shareholders, their potential high market capitalisation, the potential size of the reserve of assets backing the value of such asset-referenced tokens or e- money tokens, the potential high number of transactions, the potential interconnectedness with the financial system or the potential cross- border use of such crypto-assets. Significant asset- referenced tokens or significant e-money tokens, that could be used by a large number of holders and which could raise specific challenges in terms of financial stability, monetary policy transmission or monetary sovereignty, should be subject to more stringent requirements than other asset- referenced tokens or e-money tokens.

Amendment 1150 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Annex I – Part F – point 5 a (new)

5a. 1. Description of risks that may have an adverse impact on factors, including environmental, social and governance factors (if any). .

Amendment 1151 #

2. ~~Except for issuers of asset- referenced tokens that are exempted from authorisation in accordance with Article 15(3), d~~Details about the authorisation as an issuer of asset-referenced tokens and name of the competent authority which granted such an authorisation.

Amendment 1152 #

Proposal for a regulation
Annex II – Part D – point 3 a (new)

3a. 1. Description of risks that may have an adverse impact on factors, including environmental, social and governance factors (if any).

Amendment 1153 #

Proposal for a regulation
Annex III – Part F – point 3 a (new)

3a. 1. Description of risks that may have an adverse impact on factors, including environmental, social and governance factors (if any).

Amendment 1154 #

Proposal for a regulation
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

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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Annex V – point 29

29. ~~Unless it has been permitted to hold a lower amount of own funds in accordance with Article 31(3), t~~The 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

53. Where the issuer do not grant rights as referred to in Article 35(1) to all the holders of significant asset-referenced tokens, such an issuer infringes Article 35(3) by not establishing a policy specifying the natural or legal persons that are provided with such rights, or by not specifying the conditions for exercising such rights, or the obligations imposed on those persons.deleted

Amendment 1158 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Annex V – point 55

55. Where the issuer do not grant rights as referred to in Article 35(1) to all the holders of significant asset-referenced tokens, such an issuer infringes Article 35(4) by not putting in place a mechanism to ensure the liquidity of the significant asset-referenced tokens.deleted

Amendment 1159 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 116 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 41

(41) To ensure that asset-referenced tokens are mainly used as a means of exchange and not as a store of value, issuers of asset-referenced tokens, and any crypto-asset service providers, should not grant interests to users of asset-referenced tokens for time such users are holding those asset-referenced tokens. Some asset- referenced tokens and e-money tokens should be considered significant due to the potential large customer base of their promoters and shareholders, their potential high market capitalisation, the potential size of the reserve of assets backing the value of such asset-referenced tokens or e- money tokens, the potential high number of transactions, the potential interconnectedness with the financial system or the potential cross-border use of such crypto-assets. Significant asset- referenced tokens or significant e-money tokens, that could be used by a large number of holders and which could raise specific challenges in terms of financial stability~~, monetary policy transmission or monetary sovereignty,~~ should be subject to more stringent requirements than other asset- referenced tokens or e-money tokens.

Amendment 1160 #

Proposal for a regulation
Annex VI – point 17

17. ~~Unless it has been permitted to hold a lower amount of own funds in accordance with Article 31(3), t~~The issuer infringes Article 41(4) by not abiding, at all times, to the own funds requirement.

Amendment 117 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Recital 41 a (new)

(41a) In order to delineate significant from non-significant asset-reference tokens, appropriate thresholds should be set. The appropriateness of the thresholds should be reassessed by the European Commission on a regular basis. In case the European Commission determines that the thresholds need to be revised, the Commission should present a legislative proposal to adjust the thresholds accordingly.

Amendment 118 #

Proposal for a regulation
Recital 46

~~(46) Issuers of e-money tokens, and any crypto-asset service providers, should not grant interests to holders of e-money tokens for the time such holders are holdings those e-money tokens.~~deleted

Amendment 119 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Recital 47

(47) The crypto-asset white paper produced by an issuer or offeror of e- money tokens should contain all the relevant information concerning that issuer, when known, the offeror and the offer of e- money tokens or their admission to trading on a trading platform for crypto- assets that is necessary to enable potential buyers to make an informed purchase decision and understand the risks relating to the offer of e-money tokens. The crypto- asset white paper should also explicitly indicate that holders of e-money tokens are provided with a claim in the form of a right to redeem their e-money tokens against fiat currency at par value and at any moment.

Amendment 120 #

Proposal for a regulation
Recital 48

(48) Where an issuer of e-money tokens invests the funds received in exchange for e-money tokens, such funds should be invested in assets denominated in the same currency as the one that the e- money token is referencing to avoid cross- currency risks.deleted

Amendment 121 #

Proposal for a regulation
Recital 50

(50) Crypto-asset services should only be provided by legal entities that have a registered office in a Member State, a~~nd that~~re fiscally resident in that State and have been authorised as a crypto-asset service provider by the competent authority of the Member State where its registered office is located.

Amendment 122 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 123 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 51

(51) ~~This Regulation should not affect the possibility for persons established in the Union to receive~~Due to the inherently digital nature of crypto-asset services ~~by a~~, third- country firms a~~t their own initiative. Where a~~re often able to offer theird-country firm provides crypto-asset services at the own initiative of a person established in the Union, the crypto-asset services should not be deemed as provided in the Union. Where a third-country firm solicits clients or potential clients in the Union or promotes or advertises services to customers in the Union without any physical or legal presence in the Union. This poses significant risks of circumvention of the standards of this Regulation and of putting crypto-asset service providers authorised in the Union at a competitive disadvantage vis-a-vis third-country competitors. No legal or natural person shall therefore be allowed to provide crypto-asset services ~~or activitie~~to Union citizens ion ~~the Union, it should not be deemed as a crypto-asset~~a non-occasional basis without having a legal representative in the Union and being authorised under this Regulation, even if services are provided solely at the own initiative of ~~the~~EU clients. ~~In such a case, the~~ESMA should monitor and report annually on the scale and severity of circumvention of this Regulation by third- country ~~firm should be authorised as a crypto- asset service provider~~actors, as well as propose possible countermeasures. The European Commission should, in its final report, analyse the scale and severity of circumvention of this Regulation by third- country actors and propose concrete and effective dissuasive sanctions to such entities to end or significantly reduce such circumvention.

Amendment 124 #

Proposal for a regulation
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 125 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
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 where by 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 126 #

Proposal for a regulation
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 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 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 127 #

Proposal for a regulation
Recital 52

(52) Given the relatively small scale of crypto-asset service providers to date, the power to authorise and supervise such service providers should be conferred to national competent authorities. The authorisation should be granted, refused or withdrawn by the competent authority of the Member State where the entity has its registered office. Such an authorisation should indicate the crypto-asset services for which the crypto-asset service provider is authorised ~~and should be valid for the entire Union~~.

Amendment 128 #

Proposal for a regulation
Recital 54

(54) Some firms subject to Union legislation on financial services should be allowed to provide crypto-asset services without prior authorisation. Credit institutions authorised under Directive 2013/36/EU should not need another authorisation to provide crypto-asset services. Investment firms authorised under Directive 2014/65/EU to provide one or several investment services as defined under that Directive similar to the crypto-asset services they intend to provide should also be allowed to provide crypto-asset services across the Union without another authorisation.deleted

Amendment 129 #

Proposal for a regulation
Recital 54

Amendment 130 #

Proposal for a regulation
Recital 54

(54) Some firms, including operators of financial market infrastructures, subject to Union legislation on financial services should be allowed to provide crypto-asset services without prior authorisation. Credit institutions authorised under Directive 2013/36/EU should not need another authorisation to provide crypto-asset services. Central Counterparties authorised under of Regulation 648/2012/EU, Central Securities Depositories authorised under of Regulation 909/2014/EU and regulated markets authorized under Directive 2014/65/EU should not need another authorisation to provide crypto-asset services. Investment firms authorised under Directive 2014/65/EU to provide one or several investment services as defined under that Directive similar to the crypto- asset services they intend to provide should also be allowed to provide crypto-asset services across the Union without another authorisation.

Amendment 131 #

Proposal for a regulation
Recital 56

(56) To ensure consumer protection, crypto-asset service providers should comply with some prudential requirements. Those prudential requirements should be set as a fixed amount or in proportion to their fixed overheads of the preceding year, depending on the types of services they provide. Nevertheless, this requirement must be proportionate and must not deter potential investors from the Union market.

Amendment 132 #

Proposal for a regulation
Recital 57

(57) Crypto-asset service providers should be subject to strong organisational requirements. Their managers and main shareholders should ~~be fit and proper~~have the competence required for the purpose of anti-money laundering and combatting the financing of terrorism. Crypto-asset service providers should employ management and staff with adequate skills, knowledge and expertise and should take all reasonable steps to perform their functions, including through the preparation of a business continuity plan. They should have sound internal control and risk assessment mechanisms as well as adequate systems and procedures to ensure integrity and confidentiality of information received. Crypto-asset service providers should have appropriate arrangements to keep records of all transactions, orders and services related to crypto-assets that they provide. They should also have systems in place to detect potential market abuse committed by clients.

Amendment 133 #

Proposal for a regulation
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 134 #

Proposal for a regulation
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 Council 44 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. The principles should be proportionate and should not constitute an excessive burden, especially for SMEs, which could easily set up their headquarters in another jurisdiction whilst still providing Union consumers with access to crypto-assets. _________________ 44Regulation (EU) No 596/2014 of the 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).

Amendment 135 #

Proposal for a regulation
Recital 65

(65) ~~Competent authorities~~ESMA should be conferred with sufficient powers to supervise the issuance of crypto-assets, including asset-referenced ~~tokens or e- money~~ tokens, as well as crypto-asset service providers, including the power to suspend or prohibit an issuance of crypto- assets or the provision of a crypto-asset service, and to investigate infringements of the rules on market abuse. Given the cross- border nature of crypto-asset markets, ~~competent authorities should cooperate with each other~~there should be a European single supervisor responsible for the supervision of those crypto-assets and crypto-asset service providers with the view of ensuring consistency and effectiveness in the supervision. ESMA should cooperate with the relevant authorities in Member States to detect and deter any infringements of the legal framework governing crypto-assets and markets for crypto-assets. Competent authorities should also have the power to impose sanctions on issuers of crypto- assets, including asset-referenced tokens or e- money tokens and crypto-asset service providers.

Amendment 136 #

Proposal for a regulation
Recital 65

(65) Competent national authorities should be conferred with sufficient powers to supervise the issuance of crypto-assets, including asset-referenced tokens or e- money tokens, as well as crypto-asset service providers, including the power to suspend or prohibit an issuance of crypto- assets or the provision of a crypto-asset service, and to investigate infringements of the rules on market abuse. Given the cross- border nature of crypto-asset markets, competent authorities should cooperate with each other to detect and deter any infringements of the legal framework governing crypto-assets and markets for crypto-assets. Competent authorities should also have the power to impose sanctions on issuers of crypto-assets, including asset-referenced tokens or e- money tokens and crypto-asset service providers.

Amendment 137 #

Proposal for a regulation
Recital 65 a (new)

(65a) Competent authorities shall take appropriate supervisory action where they identify that an ART is used as a means of payment. Before they consider withdrawing an issuer’s license, they may make public the fact that an ART is increasingly used as a means of payment. Where appropriate, they may also prohibit all regulated entities the acceptance and any services related to investment ART.

Amendment 138 #

Proposal for a regulation
Recital 66

(66) Significant asset-referenced tokens can be used as a means of exchange and to make large volumes of payment transactions on a cross-border basis. To avoid supervisory arbitrage across Member States, it is appropriate to assign to the EBA, in cooperation with Member States, the task of supervising the issuers of significant asset-referenced tokens, once such asset-referenced tokens have been classified as significant.

Amendment 139 #

Proposal for a regulation
Recital 67

(67) The EBSMA should establish a college of supervisors for issuers of significant asset-referenced tokens. Those issuers 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. The members of the college of supervisors should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure, among others, the custody of the reserve assets, the operation of trading platforms for crypto-assets where the significant asset-referenced tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant asset- referenced tokens on behalf of holders. The college of supervisors should facilitate the cooperation and exchange of information among its members and should issue non- binding opinions on supervisory measures or changes in authorisation concerning the issuers of significant asset-referenced tokens or on the relevant entities providing services or activities in relation to the significant asset-referenced tokens. In case the issuer of a significant asset-referenced token is also the issue of a significant e- money token, there should only be a single college per entity. This will ensure that decisions are made holistically with all relevant information available.

Amendment 140 #

Proposal for a regulation
Recital 68

(68) Competent authorities in charge of supervision under Directive 2009/110/EC should supervise issuers of e-money tokens. However, given the potential widespread use of significant e-money tokens as a means of payment and the risks they can pose to financial stability, a dual supervision by both competent authorities and the EBSMA of issuers of significant e- money tokens is necessary. The EBSMA should supervise the compliance by issuers of significant e-money tokens with the specific additional requirements set out in this Regulation for significant e-money tokens.

Amendment 141 #

Proposal for a regulation
Recital 69

(69) The EBSMA should establish a college of supervisors for issuers of significant e- money tokens. Issuers of significant e- money tokens are usually at the centre of a network of entities which ensure the issuance of such crypto-assets, their transfer and their distribution to holders. The members of the college of supervisors for issuers of significant e- money tokens should therefore include all the competent authorities of the relevant entities and crypto-asset service providers that ensure, among others, the operation of trading platforms for crypto-assets where the significant e-money tokens are admitted to trading and the crypto-asset service providers ensuring the custody and administration of the significant e-money tokens on behalf of holders. The college of supervisors for issuers of significant e- money tokens should facilitate the cooperation and exchange of information among its members and should issue non- binding opinions on changes in authorisation or supervisory measures concerning the issuers of significant e- money tokens or on the relevant entities providing services or activities in relation to those significant e-money tokens. In case the issuer of a significant e-money token is also the issue of a significant asset-referenced token, there should only be a single college per entity. This will ensure that decisions are made holistically with all relevant information available.

Amendment 142 #

Proposal for a regulation
Recital 70

(70) To supervise the issuers of significant asset-referenced tokens, the EBSMA should have the powers, among others, to carry out on-site inspections, take supervisory measures and impose fines. The EBSMA should also have powers to supervise the compliance of issuers of significant e-money tokens with additional requirements set out in this Regulation.

Amendment 143 #

Proposal for a regulation
Recital 71

(71) The EBSMA should charge fees on issuers of significant asset-referenced tokens and issuers of significant e-money tokens to cover its costs, including overheads. For issuers of significant asset- referenced tokens, the fee should be proportionate to the size of their reserve assets. For issuers of significant e-money tokens, the fee should be proportionate to the amount of funds received in exchange for the significant e-money tokens.

Amendment 144 #

Proposal for a regulation
Recital 72

(72) In order to ensure the uniform application of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission in respect of the modifications of the definitions set out in this Regulation in order to adapt them to market and technological developments, to specify the criteria and thresholds to determine whether an asset- referenced token or an e-money token should be classified as significant and to specify the type and amount of fees that can be levied by EBA for the supervision of issuers of significant asset-referenced tokens or significant e-money tokens. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making45 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 45 OJ L 123, 12.5.2016, p. 1.deleted

Amendment 145 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Recital 73

(73) In order to promote the consistent application of this Regulation, including adequate protection of investors and consumers across the Union, technical standards should be developed. It would be efficient and appropriate to entrust the EBA and ESMA, as bodies with highly specialised expertise, with the development of draft regulatory technical standards which do not involve policy choices, for submission to the Commission. When developing said regulatory technical standards, the EBA and ESMA shall take due account of existing provisions in other pieces of EU financial services legislation in order to minimise the potential for regulatory arbitrage.

Amendment 146 #

Proposal for a regulation
Recital 76 a (new)

(76a) In order to avoid dysfunctional legislation that could hinder the development of crypto-assets and proper consumer protection, when transposing this Regulation Member States should ensure that their legislation does not create legislative discrepancies between national and European legislation that could give rise to legal uncertainty.

Amendment 147 #

Proposal for a regulation
Recital 77

(77) In order to avoid disrupting market participants that provide services and activities in relation to crypto-assets that have been issued before the entry into force of this Regulation, issuers of such crypto-assets should be exempted from the obligation to publish a crypto-asset white paper and other applicable requirements. However, those transitional provisions should not apply to issuers of asset- referenced tokens, issuers of e-money tokens or to crypto-asset service providers that, in any case, should receive an authorisation as soon as this Regulation enters into application.deleted

Amendment 148 #

Proposal for a regulation
Recital 79 a (new)

(79a) The supervisory duties in relation to markets in crypto assets most resemble the supervisory tasks fulfilled by securities markets supervisors. Therefore, ESMA should be the lead authority in developing regulatory technical standards and for the supervisory duties in relation to markets in crypto assets.

Amendment 149 #

Proposal for a regulation
Article 1 – point a

(a) transparency and disclosure requirements for the issuance and offering and admission to trading of crypto-assets on a crypto-asset trading platform;

Amendment 15 #

Stasys JAKELIŪNAS

Proposal for a regulation
–

The European Parliament rejects Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937.

Amendment 150 #

Proposal for a regulation
Article 1 – point a

(a) transparency and disclosure requirements for the issuance and ~~admission to trading~~offering of crypto-assets, and admission to trading on a trading platform of crypto-assets;

Amendment 151 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 1 – point a

(a) transparency and disclosure requirements for the issuance, offering and admission to trading on a trading platform of crypto-assets;

Amendment 152 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 1 – point b

(b) the authorisation and supervision of crypto-asset service providers and issuers ofand offerors of both asset-referenced tokens and ~~issuers of~~ electronic money tokens;

Amendment 153 #

Proposal for a regulation
Article 1 –point b

(b) the authorisation and supervision of crypto-asset service providers and issuers and offerors of asset-referenced tokens and issuers of electronic money tokens;

Amendment 154 #

Proposal for a regulation
Article 1 –point c

(c) the operation, organisation and governance of issuers and offerors of asset-referenced tokens, issuers and offerors of electronic money tokens and crypto-asset service providers;

Amendment 155 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 1 –point c

(c) the operation, organisation and governance of issuers and offerors of asset-referenced tokens, issuers and offerors of electronic money tokens and crypto-asset service providers;

Amendment 156 #

Proposal for a regulation
Article 1 –point e a (new)

(ea) measures to prevent the misuse of crypto-assets for illicit purposes to protect the internal market from the risks relating to money laundering, terrorist financing and other criminal activities.

Amendment 157 #

1. This Regulation applies to persons that are engaged: (a) in the issuance of crypto- ~~assets or~~assets, except crypto-assets that are unique and not fungible with other crypto-assets, which are not fractionable and transferable directly to other holders without the issuer’s permission, are accepted only by the issuer, including merchant’s loyalty schemes, represent IP rights, guarantees, certificate authenticity of a unique physical asset, or any other right not linked to the ones that financial instruments bear, and are not accepted to trading at a crypto-asset exchange; or (b) provide services related to fungible crypto- assets in the Union.

Amendment 158 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 2 – paragraph 1

1. This Regulation applies to persons that are engaged in the issuance or offering of crypto- assets for the purpose of trading or provideing services related to crypto- assets trading in the Union.

Amendment 159 #

Proposal for a regulation
Article 2 – paragraph 1

1. This Regulation applies to persons that are engaged in the issuance of crypto- assets, offering of crypto-assets, or provide services related to crypto- assets in the Union.

Amendment 16 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
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 160 #

Proposal for a regulation
Article 2 – paragraph 1

1. This Regulation applies to persons that are engaged in the issuance of crypto- assets, the offering of crypto-assets, or provide services related to crypto- assets in the Union.

Amendment 161 #

Proposal for a regulation
Article 2 – paragraph 1

1. This Regulation applies to persons that are engaged in the issuance or holding of crypto- assets or provide services related to crypto- assets in the Union.

Amendment 162 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 2 – paragraph 2 – point a

(a) ~~financial instrument~~investment tokens as defined in Article 4(1), point (15), of Directive 2014/65/EU;

Amendment 163 #

Proposal for a regulation
Article 2 – paragraph 2 – point a a (new)

(aa) 'hybrid tokens', which combine elements of financial instruments as defined in paragraph 2(a) of this article, with elements of crypto-assets, thereby creating a hybrid 'financial crypto-asset';

Amendment 164 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 2 – paragraph 2 – point b a (new)

(ba) crypto-assets, other than asset- referenced tokens or e-money tokens which are not admitted to trading on a trading platform for crypto-assets;

Amendment 165 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 2 – paragraph 2 – point b b (new)

(bb) funds, other than e-money tokens, included in a payments account as defined in Article 4 (12) of Directive 2015/2366/EU;

Amendment 166 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 2 – paragraph 2 – point e a (new)

(ea) moreover, this Regulation does not apply to crypto-assets which resemble in substance or share a high degree of similarity with any of the categories listed in point (a) to (e) of this paragraph;

Amendment 167 #

Proposal for a regulation
Article 2 – paragraph 2 – point e a (new)

(ea) payment instruments with restrictions on spending under point (k) in the first paragraph of Article 3 of Directive (EU 2015/2366.

Amendment 168 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 2 – paragraph 2 – point e a (new)

(ea) - tokens issued by public entities for the purpose of the settlement of public levies.

Amendment 169 #

Lídia PEREIRA

Proposal for a regulation
Article 2 – paragraph 2 – point e a (new)

(ea) loyalty or reward programmes;

Amendment 17 #

Proposal for a regulation
Recital 1 a (new)

(1a) In practice, DLT refers to the protocols and supporting infrastructure that enable nodes in a network to propose, validate, and record state changes(or updates) consistently across the network’s nodes – without the need to rely on a central trusted party to obtain reliable data. DLT is built upon public-key cryptography, a cryptographic system that uses pairs of keys: public keys, which are publicly known and essential for identification, and private keys, which are kept secret and are used for authentication and encryption.

Amendment 170 #

Proposal for a regulation
Article 2 – paragraph 2 a (new)

2a. For the purpose of paragraph 2, ESMA shall develop draft regulatory technical standards outlining the criteria and conditions under which a crypto-asset can be considered in substance as equivalent or highly similar to a financial instrument irrespective of its form. ESMA shall submit those draft regulatory technical standards to the Commission by [12 months after the date of entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’

Amendment 171 #

Proposal for a regulation
Article 2 – paragraph 3 – point a

~~(a) the European Central Bank, national central banks of the Member States when acting in their capacity as monetary authority or other public authorities;~~deleted

Amendment 172 #

Proposal for a regulation
Article 2 – paragraph 3 – point a

(a) ~~the European Central Bank,~~ national central banks of the Member States when acting in their capacity as monetary authority or other public authorities;

Amendment 173 #

Proposal for a regulation
Article 2 – paragraph 3 – point d

~~(d) persons who provide crypto-asset services exclusively for their parent companies, for their subsidiaries or for other subsidiaries of their parent companies;~~deleted

Amendment 174 #

Proposal for a regulation
Article 2 – paragraph 3 – point e

~~(e) the European investment bank;~~deleted

Amendment 175 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 2 – paragraph 3 – point g

~~(g) public international organisations.~~deleted

Amendment 176 #

Proposal for a regulation
Article 2 – paragraph 3 – point g a (new)

(ga) crypto-asset service providers, credit institutions and electronic money institutions, authorised under Article 2(1) of Directive 2009/110/EC, when they are operating or providing a service for the entities or persons referred to in points (a) to (g);

Amendment 177 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 2 – paragraph 3 – point g b (new)

(gb) persons that develop and enable services for open source crypto-assets in which the inspection, modification, use or redistribution of source code is permitted;

Amendment 178 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 2 – paragraph 4

4. Where issuing asset-referenced tokens, including significant asset- referenced tokens, credit institutions authorised under Directive 2013/36/EU shall not be subject to: (a) the provisions of chapter I of Title III, except Articles 21 and 22; (b) Article 31.deleted

Amendment 179 #

Proposal for a regulation
Article 2 – paragraph 4 – point a

(a) the provisions of chapter I of Title III, except Articles 21 and 22 and the information specified in Article 16(2)(c)- (o).;

Amendment 18 #

Proposal for a regulation
Recital 1 a (new)

(1a) The Union is committed to setting an example of an assertive and positive attitude as a leader of regulatory progress in the crypto-assets field. Welcoming global players into a safe and intelligently regulated environment, with the simultaneous creation of the foundations for openness and flexibility to transformation and innovation, would enhance the Union’s role as a leader in this new technological era.

Amendment 180 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 2 – paragraph 4 a (new)

4a. Where issuing asset-referenced tokens, including significant asset- referenced tokens, credit institutions authorised under Directive 2013/36/EU shall notify their respective supervisory authority of the intention to issue an asset-referenced token at the latest three months prior to the intended date of initial issuance.

Amendment 181 #

Proposal for a regulation
Article 2 – paragraph 5

5. Where providing one or more crypto-asset services, credit institutions authorised under Directive 2013/36/EU shall not be subject to the provisions of chapter I of Title V, except Articles 57 and 58.deleted

Amendment 182 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 2 – paragraph 5

5. Where providing one or more crypto-asset services, credit institutions authorised under Directive 2013/36/EU, central counterparties authorised under regulation 648/2012/EU, central securities depositories authorised under regulation 909/2014/EU and regulated markets authorised under directive 2014/65/EU shall not be subject to the provisions of chapter I of Title V, except Articles 57 and 58.

Amendment 183 #

Proposal for a regulation
Article 2 – paragraph 5

Amendment 184 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 2 – paragraph 5 a (new)

5a. Where providing one or more crypto asset services, financial market infrastructures authorised under Directive (EU) 2015/2366, Regulation (EU) No 648/2012, Regulation (EU) No 909/2014 or Directive 2014/65/EU should not be subject to the provisions of chapter I of Title V, except the information specified in Article 54.2(d-r), Articles 57 and 58.

Amendment 185 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL, Ondřej KOVAŘÍK

Proposal for a regulation
Article 2 – paragraph 5 a (new)

5a. Where providing one or more crypto asset services, the management company of a UCITS authorised under Directive 2009/65/EC or an alternative fund investment manager authorised under Directive 2011/61/EU should not be subject to the provisions of chapter I of Title V, except the information specified in Article 54.2(d-r), Articles 57 and 58.

Amendment 186 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 2 – paragraph 6

6. Investment firms authorised under Directive 2014/65/EU shall not be subject to the provisions of chapter I of Title V, except Articles 57, 58, 60 and 61, where they only provide one or several crypto- asset services equivalent to the investment services and activities for which they are authorised under Directive 2014/65/EU. For that purpose: (a) the crypto-asset services defined in Article 3(1), point (11), of this Regulation are deemed to be equivalent to the investment activities referred to in points (8) and (9) of Section A of Annex I to Directive 2014/65/EU; (b) the crypto-asset services defined in Article 3(1), points (12) and (13), of this Regulation are deemed to be equivalent to the investment services referred to in point (3) of Section A of Annex I to Directive 2014/65/EU; (c) the crypto-asset services defined in Article 3(1), point (14), of this Regulation are deemed to be equivalent to the investment services referred to in point (2) of Section A of Annex I to Directive 2014/65/EU; (d) the crypto-asset services defined in Article 3(1), point (15), of this Regulation are deemed to be equivalent to the investment services referred to in points (6) and (7) of Section A of Annex I to Directive 2014/65/EU; (e) the crypto-asset services defined in Article 3(1), point (16), of this Regulation are deemed to be equivalent to the investment services referred to in point (1) of Section A of Annex I to Directive 2014/65/EU. (f) the crypto-asset services defined in Article 3(1), point (17), of this Regulation are deemed to be equivalent to the investment services referred to in points (5) of Section A of Annex I to Directive 2014/65/EU.deleted

Amendment 187 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 2 – paragraph 6 – introductory part

6. Investment firms authorised under Directive 2014/65/EU shall not be subject to the provisions of chapter I of Title V, except the information specified in Article 54.2(d-r), Articles 57, 58, 60 and 61, where they only provide one or several crypto- asset services equivalent to the investment services and activities for which they are authorised under Directive 2014/65/EU. For that purpose:

Amendment 188 #

Proposal for a regulation
Article 2 – paragraph 6 a (new)

6a. The Regulation shall not apply to the following categories of crypto-assets: (a) crypto-assets, other than asset- referenced tokens or e-money tokens, that are not offered for investment purposes. (b) decentralised crypto-assets.

Amendment 189 #

Proposal for a regulation
Article 3 – paragraph 1 – point 1

(1) ‘distributed ledger technology’ or ‘DLT’ means a type of technology that ~~support the distributed recording of encrypted data;~~refers to the protocols and supporting infrastructure that allow computers in different locations to propose and validate transactions and update records in a synchronised way across a network.

Amendment 19 #

Proposal for a regulation
Recital 2

(2) In finance, crypto-assets are one of the major DLT applications. Crypto-assets are digital representations of value or rights that have the potential to bring significant benefits to both market participants and consumers. By streamlining capital-raising processes and enhancing competition, issuances of crypto-assets can allow for a cheaper, less burdensome and more inclusive way of financing small and medium-sized enterprises (SMEs). When used as a means of payment, payment tokens ~~can~~are meant to present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross- border basis, by limiting the number of intermediaries. However, crypto-assets as a means of payment give rise to legal and economic uncertainty in view of their considerable volatility and the possibility for firms to stop accepting them without notice.

Amendment 190 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 3 – paragraph 1 – point 1

(1) ‘distributed ledger technology’ or ‘DLT’ means a ~~type of~~ technology that ~~support the distributed recording of encrypted data~~enables to store and share records of data and transactions in a synchronized manner across network nodes, using a consensus mechanism;

Amendment 191 #

Proposal for a regulation
Article 3 – paragraph 1 – point 1

(1) ‘distributed ledger technology’ or ‘DLT’ means ~~a type of technology that support the distributed recording of encrypted data~~protocols that enable members to agree a single source of truth through consensus mechanisms in a distributed network;

Amendment 192 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 3 – paragraph 1 – point 1

(1) ‘distributed ledger technology’ or ‘DLT’ means a type of technology that support the distributed recording of ~~encrypted~~ data;

Amendment 193 #

Proposal for a regulation
Article 3 – paragraph 1 – point 1 a (new)

(1a) ’a decentralized autonomous organisation’ means a rule-based organisational system that is not controlled by any central authority; the decentralized autonomous organisation's rules are entirely routed in its algorithm;

Amendment 194 #

Proposal for a regulation
Article 3 – paragraph 1 – point 1 a (new)

(1a) ‘consensus mechanism’ means a set of rules and procedures by which an agreement, among DLT network nodes, is achieved leading to the validation of a transaction;

Amendment 195 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 3 – paragraph 1 – point 2

(2) ‘crypto-asset’ means a digital representation of value or rights for direct investment or finance purposes that use cryptography for security and are coins or tokens of distributed ledgers, and which may be transferred and stored electronically, using distributed ledger technology or similar technology;

Amendment 196 #

Proposal for a regulation
Article 3 – paragraph 1 – point 2

(2) ‘crypto-asset’ means a digital representation of value or rights for direct investment or finance purposes, which may be transferred and stored electronically, using distributed ledger technology or similar technology;

Amendment 197 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 3 – paragraph 1 – point 2

(2) ‘crypto-asset’ means a fungible digital representation of value or rights which may be transferred and stored electronically, using distributed ledger technology or similar technology;

Amendment 198 #

Proposal for a regulation
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 ~~fiat~~official currencies ~~that are legal tender,~~or one or several commodities ~~or one or several crypto-assets,~~ or a combination of such assets;

Amendment 199 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 3 – paragraph 1 – point 3

(3) ‘asset-referenced token’ means a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referring to any other value o~~f several fiat currencies that are legal tender, one or several commodities or one or several crypto-assets,~~r right or combination thereof, including one or several official currencies orf a co~~mbination of such assets~~untry;

Amendment 20 #

Victor NEGRESCU

Proposal for a regulation
Recital 2

(2) In finance, crypto-assets are one of the major DLT applications. Crypto-assets are digital representations of value or rights that have the potential to bring significant benefits to both market participants and consumers. By streamlining capital-raising processes and enhancing competition, issuances of crypto-assets can allow for a cheaper, less burdensome and more inclusive way of financing small and medium-sized enterprises (SMEs). Blockchain is also a ground-breaking technology that will open a wide range of options for start-ups and SMEs and that can also improve the public sector services for the citizens. When used as a means of payment, payment tokens can present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting the number of intermediaries.

Amendment 200 #

Proposal for a regulation
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 ~~fiat~~official currencies ~~that are legal tender~~, one or several commodities or one or several crypto-assets, or a combination of such assets;

Amendment 201 #

Proposal for a regulation
Article 3 – paragraph 1 – point 3 a (new)

(3a) “Payments ART’ means an asset- referenced token that refers to one or more official currencies of a country or is regularly used as a means of payment;

Amendment 202 #

Proposal for a regulation
Article 3 – paragraph 1 – point 3 b (new)

(3b) ‘Investment ART’ means an asset- referenced token that is not a Payments ART;

Amendment 203 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
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 tender~~as defined in Article 2(2a) of Directive 2009/110/EC;

Amendment 204 #

Proposal for a regulation
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 tender~~maintaining a portfolio which ensures that the token maintains the value of a fiat currency that is legal tender; e-money tokens which maintain the value of a fiat currency of the Union shall be deemed to be electronic money as defined in Article 2 (2) of Directive 2009/110/EC;

Amendment 205 #

Proposal for a regulation
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~~payment and that purports to maintain a stable value by referring to the value of a fiat currency that is legal tender and that otherwise fulfils the characteristics of ‘electronic money’ as defined in Article 2 (2) of Directive 2009/110/EC;

Amendment 206 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
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 tender; electronic money tokens means electronic money as defined by Directive 2009/110/EC;

Amendment 207 #

Proposal for a regulation
Article 3 – paragraph 1 – point 4

Amendment 208 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 3 – paragraph 1 – point 4

Amendment 209 #

Proposal for a regulation
Article 3 – paragraph 1 – point 5

(5) ‘utility token’ means a type of crypto-asset which is accepted only by the issuer and is intended to provide digital access to a good or service, available on DLT, ~~and is only accepted~~provided only by the issuer of that token;

Amendment 21 #

Proposal for a regulation
Recital 2

(2) In finance, crypto-assets are one of the major DLT applications. Crypto-assets are digital representations of value or rights that have the potential to bring significant benefits to both market participants and consumers. By streamlining capital-raising processes and enhancing competition, issuances of crypto-assets can allow for a cheaper, less burdensome and more inclusive way of financing small and medium-sized enterprises (SMEs). When used as a means of payment, payment tokens can present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting the number of intermediaries. It is expected that numerous applications of blockchain technology that have not yet been fully studied will create new types of business activity and business models which, together with the crypto-asset sector itself, will lead to economic growth and new employment opportunities for EU citizens.

Amendment 210 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 3 – paragraph 1 – point 5

(5) ‘utility token’ means a type of crypto-asset that is used for purposes other than as a means of payment or exchange for external goods or services and which is intended to provide digital access to a good or service, available on DLT, and is only accepted by the issuer of that token;

Amendment 211 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 3 – paragraph 1 – point 5

(5) ‘utility token’ means a type of crypto-asset which is intended to provide digital access to a fungible good or service, available on DLT, and is only accepted by the issuer of that token;

Amendment 212 #

Proposal for a regulation
Article 3 – paragraph 1 – point 5 a (new)

(5a) 'financial market infrastructures' (FMIs) means payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories;

Amendment 213 #

Proposal for a regulation
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 seeks the admission of such crypto-assets to a trading platform for~~controls the creation of crypto-assets;

Amendment 214 #

(6) ‘issuer of crypto-assets’ means any natural or legal person who ~~offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for crypto-~~issues crypto- assets;

Amendment 215 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
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 seeks the admission of such crypto-assets to a trading platform for~~the identifiable natural or legal person who creates the crypto-assets;

Amendment 216 #

Proposal for a regulation
Article 3 – paragraph 1 – point 6

(6) ‘issuer of crypto-assets’ means a ~~legal person~~natural person , a legal person or other entity being subject of rights and obligations, who offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for crypto-assets;

Amendment 217 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
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 218 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 6 a (new)

(6a) ‘offeror of crypto-assets’ means a legal person who offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for crypto-assets;

Amendment 219 #

Proposal for a regulation
Article 3 – paragraph 1 – point 6 a (new)

(6a) ‘offeror of crypto-assets’ means a legal person who offers to the public any type of crypto-asset or seeks the admission of such crypto-assets to a trading platform for crypto-assets;

Amendment 22 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU, Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Recital 2 a (new)

(2a) A crypto-asset can be seen as an asset that depends primarily on cryptography and DLT or similar technology as part of its perceived or inherent value, that is neither issued nor guaranteed by a central bank or public authority, and that can be used as a means of exchange and/or for investment purposes.

Amendment 220 #

Proposal for a regulation
Article 3 – paragraph 1 – point 6 a (new)

(6a) ‘offeror of crypto-assets’ means a legal entity who offers to the public any type of crypto-assets or asks for admission to trading of such crypto-assets on a trading platform for crypto-assets;

Amendment 221 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 3 – paragraph 1 – point 6 a (new)

(6a) an 'offeror of crypto-assets' means a legal entity which offers any type of crypto-assets or asks for admission to trading of crypto-assets on a trading platform for crypto-assets;

Amendment 222 #

Proposal for a regulation
Article 3 – paragraph 1 – point 6 a (new)

(6a) ‘offeror of crypto-assets’ means any natural or legal person which offers crypto-assets, if different from the issuer;

Amendment 223 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 6 b (new)

(6b) ‘decentralised crypto-assets’ means crypto-assets issued and exchanged in a decentralised network, where no single entity has the effective control over the transactions in the network, including the issuance and offering of such crypto assets;

Amendment 224 #

Proposal for a regulation
Article 3 – paragraph 1 – point 6 b (new)

(6b) ‘decentralised cryptocurrencies’ means cryptocurrencies issued and exchanged in a decentralised system, where no single entity has the effective control over the transactions, including the issuance and offering of such cryptocurrencies;

Amendment 225 #

Proposal for a regulation
Article 3 – paragraph 1 – point 7

(7) ‘offer to the public’ means a~~n offer to third parties to acquire a crypto-asset in exchange for fiat currency or other crypto-asset~~ 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 holder/client to decide to purchase those crypto-assets. This definition also applies to the placing of crypto-assets through crypto-assets services providers;

Amendment 226 #

Proposal for a regulation
Article 3 – paragraph 1 – point 7

(7) ‘offer to the public’ means a~~n offer to third parties to acquire a crypto-asset in exchange for fiat currency or other crypto-asset~~ 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 a person to decide to purchase those crypto-assets. This definition also applies to the placing of crypto-assets through crypto-assets service providers;

Amendment 227 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 3 – paragraph 1 – point 7

(7) ‘offer to the public’ means a~~n offer~~ message to third parties ~~to acquire a~~providing sufficient information about the conditions of the offer and the crypto- asset ~~in exchange for fiat currency or other~~s that may be offered via the trading platform, in order to enable the third party to make a decision regarding the purchase of such crypto-assets;

Amendment 228 #

Proposal for a regulation
Article 3 – paragraph 1 – point 7

(7) ‘offer to the public’ means a~~n 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 229 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 3 – paragraph 1 – point 7

(7) ‘offer to the public’ means an offer made on a professional basis to third parties to acquire a crypto-asset in exchange for fiat currency or other crypto- assets;

Amendment 23 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI, France JAMET

Proposal for a regulation
Recital 3

(3) Some crypto-assets qualify as financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU of the European Parliament and of the Council33. Because of the specific features linked to their innovative and technological aspects, however, it is necessary to clearly identify the requirements for classifying a crypto-asset as a financial instrument. For this purpose, the European Securities and Markets Authority (ESMA) should be tasked by the European Commission with publishing guidelines in order to reduce legal uncertainty and guarantee a level playing field for market operators. The majority of crypto-assets, however, fall outside of the scope of Union legislation on financial services. There are no rules for services related to crypto-assets, including for the operation of trading platforms for crypto- assets, the service of exchanging crypto- assets against fiat currency or other crypto- assets, or the custody of crypto- assets. The lack of such rules leaves holders of crypto- assets exposed to risks, in particular in areas not covered by consumer protection rules. The lack of such rules can also lead to substantial risks to market integrity in the secondary market of crypto-assets, including market manipulation. To address those risks, some Member States have put in place specific rules for all – or a subset of – crypto-assets that fall outside Union legislation on financial services. Other Member States are considering to legislate in this area. _________________ 33Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

Amendment 230 #

Proposal for a regulation
Article 3 – paragraph 1 – point 7 a (new)

(7a) ‘offeror’ means any natural or legal person, including the issuer of crypto-assets, which offers crypto-assets to the public;

Amendment 231 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 3 – paragraph 1 – point 7 a (new)

(7a) ‘offeror’ means any identifiable legal or natural person, including the issuer, which offers crypto-assets to the public;

Amendment 232 #

Proposal for a regulation
Article 3 – paragraph 1 – point 7 a (new)

(7a) "funds" means funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;

Amendment 233 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 3 – paragraph 1 – point 7 b (new)

(7b) 'fork' means an operation resulting in the duplication of an existing distributed ledger, creating in effect another version of such ledger and leading them to run simultaneously, that gives rise of new crypto-assets which may have material value and in quantity equivalent to crypto-assets circulating on the initial ledger;

Amendment 234 #

Proposal for a regulation
Article 3 – paragraph 1 – point 8

(8) ‘crypto-asset service provider’ means any person ~~whose occupation or~~or entity who has been authorised to provide one or more crypto- asset services in accordance with art.53 to third parties on a professional buasi~~ness is the provision of one or more~~s. 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 basis~~for 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 235 #

Proposal for a regulation
Article 3 – paragraph 1 – point 8

(8) ‘crypto-asset service provider’ means any person who~~se occupation or business is the provision of~~ has been authorised to provide one or more crypto- asset services to third parties on a professional basis in accordance with art.53;

Amendment 236 #

Proposal for a regulation
Article 3 – paragraph 1 – point 8

(8) ‘crypto-asset service provider’ means any person who~~se occupation or business is the provision of~~ has been authorised to provide one or more crypto- asset services ~~to third parties on a professional basis~~in accordance with art.53;

Amendment 237 #

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point c

Amendment 238 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point h

(h) providing paid advice on crypto- assets;

Amendment 239 #

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point h a (new)

(ha) the exchange of crypto-assets for financial instruments

Amendment 24 #

Proposal for a regulation
Recital 3

(3) Some crypto-assets qualify as financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU of the European Parliament and of the Council33 . Other crypto-assets may qualify as ´deposits´ as defined in Article 2 (1), point (3) of Directive 2014/49/EU of the European Parliament and the Council. The majority of crypto-assets, however, fall outside of the scope of Union legislation on financial services. There are no rules for services related to crypto- assets, including for the operation of trading platforms for crypto-assets, the service of exchanging crypto-assets against fiat currency or other crypto-assets, or the custody of crypto-assets. The lack of such rules leaves holders of crypto-assets exposed to risks, in particular in areas not covered by consumer protection rules. The lack of such rules can also lead to substantial risks to market integrity in the secondary market of crypto-assets, including market manipulation. To address those risks, some Member States have put in place specific rules for all – or a subset of – crypto-assets that fall outside Union legislation on financial services. Other Member States are considering to legislate in this area. _________________ 33Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

Amendment 240 #

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point h a (new)

(ha) providing portfolio management on crypto-assets;

Amendment 241 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point h a (new)

(ha) portfolio management;

Amendment 242 #

Proposal for a regulation
Article 3 – paragraph 1 – point 9 – point h b (new)

(hb) the provision of a portfolio management service;

Amendment 243 #

Proposal for a regulation
Article 3 – paragraph 1 – point 17

(17) ‘providing paid advice on crypto- assets’ means ~~offering, giving or agreeing to give~~giving personalised or specific recommendations to a third party, in exchange for remuneration, either at the third party’s request or on the initiative of the crypto- asset service provider providing the advice, concerning the acquisition or the sale of one or more crypto-assets, or the use of crypto-asset services;

Amendment 244 #

Proposal for a regulation
Article 3 – paragraph 1 – point 17 a (new)

(17a) ‘portfolio management’ means managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more crypto-assets;

Amendment 245 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 17 a (new)

(17a) "portfolio management" means managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more crypto assets;

Amendment 246 #

Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)

(28a) ‘portfolio management service’ means the management, on a discretionary and tailored basis, of crypto- asset portfolios in accordance with mandates from clients;

Amendment 247 #

Proposal for a regulation
Article 3 – paragraph 1 – point 17 b (new)

(17b) 'unhosted wallet’ means a software or hardware that allows to hold, store and transfer crypto-assets which is not hosted by a third party, such as a financial institution or a credit service provider;

Amendment 248 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 3 – paragraph 1 – point 18

(18) ‘management body’ means the body of an issuer of crypto-assets, offeror of crypto-assets or of a crypto-asset provider, as applicable, which is appointed in accordance with national law, and which is empowered to set the entity’s strategy, objectives, the overall direction and which oversees and monitors management decision-making and which includes persons who direct the business of the entity;

Amendment 249 #

Proposal for a regulation
Article 3 – paragraph 1 – point 21

(21) ‘reserve assets’ means the basket of ~~fiat currencies that are legal tender~~official national currencies, commodities or crypto-assets, backing the value of an asset-referenced tokens, or the investment of such assets;

Amendment 25 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Recital 3

(3) Some crypto-assets qualify as financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU of the European Parliament and of the Council33 . The majority of crypto-assets, however, fall currently outside of the scope of Union legislation on financial services. There are no rules for services related to crypto- assets, including for the operation of trading platforms for crypto- assets, the service of exchanging crypto- assets against fiat currency or other crypto- assets, or the custody of crypto-assets. The lack of such rules leaves holders of crypto- assets exposed to risks, in particular in areas not covered by consumer protection rules. The lack of such rules can also lead to substantial risks to market integrity in the secondary market of crypto-assets, including market manipulation and financial crime. To address those risks, some Member States have put in place specific rules for all – or a subset of – crypto-assets that fall outside Union legislation on financial services. Other Member States are considering to legislate in this area. _________________ 33Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).

Amendment 250 #

Proposal for a regulation
Article 3 – paragraph 1 – point 21

(21) ‘reserve assets’ means the basket of ~~fiat~~official currencies ~~that are legal tender, commodities or crypto-asset~~of countries or commodities, backing the value of an asset-referenced tokens, or the investment of such assets;

Amendment 251 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 3 – paragraph 1 – point 22 – point a

(a) where the issuer of crypto-assets, other than asset-referenced tokens or electronic money tokens, has its registered office ~~or a branch~~ in the Union, the Member State where the issuer of crypto- assets has its registered office ~~or a branch~~;

Amendment 252 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 3 – paragraph 1 – point 22 – point b

(b) where the issuer of crypto-assets, other than asset-referenced tokens or electronic money tokens, has no registered office in the Union but has two or more branches in the Union, the Member State chosen by the issuer among those Member States where the issuer has branches;deleted

Amendment 253 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 3 – paragraph 1 – point 22 – point c

(c) where the issuer of crypto-assets, other than asset-referenced tokens or electronic money tokens, is established in a third country ~~and has no branch in the Union~~, at the choice of that issuer, either the Member State where the crypto- assets are intended to be offered to the public for the first time or the Member State where the first application for admission to trading on a trading platform for crypto- assets is made;

Amendment 254 #

Proposal for a regulation
Article 3 – paragraph 1 – point 24 – point a

(a) the authority, designated by each Member State in accordance with Article 81 for issuers and offerors of crypto- assets, issuers and offerors of asset- referenced tokens and crypto-asset service providers;

Amendment 255 #

Proposal for a regulation
Article 3 – paragraph 1 – point 24 – point b

(b) the authority, designated by each Member State, for the application of Directive 2009/110/EC for issuers and offerors of e- money tokens;

Amendment 256 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 3 – paragraph 1 – point 26

(26) ‘qualifying holding’ means any direct or indirect holding in an issuer or offeror of asset-referenced tokens or in a crypto-asset service provider which represents at least 10 % of the capital or the voting rights, as set out in Articles 9 and 10 of Directive 2004/109/EC of the European Parliament and of the Council53, taking into account the conditions regarding aggregation thereof laid down in paragraphs 4 and 5 of Article 12 of that Directive, or which makes it possible to exercise a significant influence over the management of the investment firm in which that holding subsists. _________________ 53 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (OJ L 390, 31.12.2004, p. 38).

Amendment 257 #

Lídia PEREIRA

Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)

(28a) ‘Loyalty or reward programme’ means a contracted mechanism that offers rewards to members for the participation in the programme. This means the use of redeemable points or credits that are primarily obtained through participation in a loyalty or reward programme, where each of the following conditions is met: i) the holder of the crypto-assets may not transfer them to other holders without the offeror’s permission, and ii) the crypto- assets are non-fractionable; and iii) the crypto-assets don’t have investment purposes, as the crypto assets are primarily used for the purchase of goods or services or other benefits in connection with a loyalty or reward programme;

Amendment 258 #

Proposal for a regulation
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 259 #

Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)

(28a) ‘client’ means any natural or legal person to whom a crypto-asset provider provides a crypto-asset service;

Amendment 26 #

Proposal for a regulation
Recital 4

(4) The lack of a~~n overall Union~~ framework for crypto-assets can lead to a lack of users’ confidence in those assets, which will hinder the development of a market in those assets and can lead to missed opportunities in terms of innovative digital services, alternative payment instruments or new funding sources for ~~Union~~ companies. In addition, companies using crypto-assets will have no legal certainty on how their crypto-assets will be treated in the different Member States, which will undermine their efforts to use crypto-assets for digital innovation. The lack of an overall Union framework on crypto-assets could also lead to regulatory fragmentation, which will distort competition in the Single Market, make it more difficult for crypto-asset service providers to scale up their activities on a cross-border basis and will give rise to regulatory arbitrage. The crypto-asset market is still modest in size and does not yet pose a threat to financial stability. It is, however, likelyAs the crypto-asset market is increasingly accessible to individual investors, the issue of its impact on financial stability in the future must be addressed. It is possible that a subset of crypto- assets which aim to stabilise their price by linking their value to a specific asset or a basket of assets could be widely adopted by consumers. Such a development could raise additional challenges to financial stability, monetary policy transmission or monetary sovereignty.

Amendment 260 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 3 – paragraph 1 – point 28 a (new)

(28a) "central counterparty" (CCP) means "CCP" as defined in point 1 of Article 2 of Regulation 648/2012/EU;

Amendment 261 #

Proposal for a regulation
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 262 #

Proposal for a regulation
Article 3 – paragraph 1 – point 28 b (new)

(28b) "central securities depository" (CSD) means "central securities depository" as defined in point 1 of Article 2 (1) of Regulation 909/2014/EU;

Amendment 263 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 3 – paragraph 1 – point 28 c (new)

(28c) "regulated market" means "regulated market" as defined in point 21 of Article 4 (1) of Directive 2014/65/EU;

Amendment 264 #

Proposal for a regulation
Article 3 – paragraph 2

~~2. The Commission is empowered to adopt~~ delegated ~~acts in accordance with Article 121 to specify technical elements of the definitions laid down in paragraph 1, and to adjust those definitions to market developments and technological developments.~~

Amendment 265 #

Proposal for a regulation
Article 3 a (new)

Article 3a Environmental sustainability of crypto- assets 1. Crypto-assets issued, offered or admitted to trading in the Union shall meet the environmental sustainability criteria in accordance with this Article. 2. Where a crypto-asset relies on an environmentally unsustainable consensus mechanism, this consensus mechanism shall only be operated at small scale. 3. A consensus mechanism shall be deemed environmentally unsustainable if it might have a significant environmental impact when operated at sufficiently large scale, considering the consumption of energy, the use of real resources, carbon emissions, electronic waste and specificities of the incentive design. 4. An environmentally unsustainable consensus mechanism shall be deemed to be operated at small scale if, due to the limited scale of its operations, its environmental impact can be safely assumed not to cause significant harm to any of the environmental objectives set out in Regulation (EU) 2020/852 [Taxonomy Regulation] as well as not to jeopardise the achievement of the EU objectives of the Paris Agreement. 5. A crypto-asset shall be deemed to rely on a certain consensus mechanism also if it relies on a digital infrastructure which relies on that consensus mechanism. In that case, the full environmental impact of the digital infrastructure’s operation of the consensus mechanism shall be counted towards the crypto-asset for the purpose of assessing the criterion in paragraph 2. 6. The Commission is empowered to adopt delegated acts in accordance with Article 121 to determine environmentally unsustainable consensus mechanisms as well as criteria to determine whether they are operated at small scale. Where environmentally unsustainable consensus mechanisms are currently in use at large scale, the Commission may set an appropriate transition period to allow for a potential transition to more sustainable alternatives.

Amendment 266 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. No ~~issuer of~~person shall offer crypto-assets, other than asset-referenced tokens or e- money tokens, ~~shall,~~ in the Union, ~~offer such crypto-assets~~ to the public, or seek an admission of such crypto-assets to trading on a trading platform for crypto- assets, unless that ~~issuer~~person:

Amendment 267 #

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. No issuer of crypto-assets, other than asset-referenced tokens or e-money tokens, shall, in the Union, offer such crypto-assets to the public, or seek an admission of such crypto-assets to trading on a trading platform for crypto-assets, unless that ~~issue~~offeror:

Amendment 268 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 4 – paragraph 1 – introductory part

1. No issuer or offeror of crypto- assets, other than asset-referenced tokens or e-money tokens, shall, in the Union, offer such crypto-assets to the public, or seek an admission of such crypto-assets to trading on a trading platform for crypto- assets, unless that issuer or offeror:

Amendment 269 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU

Proposal for a regulation
Article 4 – paragraph 1 – point a

(a) is a legal entity, a natural person having its residence in the Union, or other entity established or having seat in the Union and subject to the rights and obligations of the Union;

Amendment 27 #

Proposal for a regulation
Recital 4

(4) The lack of an overall Union framework for crypto-assets can lead to a lack of users’ confidence in those assets, which will hinder the development of a market in those assets and can lead to missed opportunities in terms of innovative digital services, alternative payment instruments or new funding sources for Union companies. In addition, companies using crypto-assets will have no legal certainty on how their crypto-assets will be treated in the different Member States, which will undermine their efforts to use crypto-assets for digital innovation. The lack of an overall Union framework on crypto-assets could also lead to regulatory fragmentation, which will distort competition in the Single Market, make it more difficult for crypto-asset service providers to scale up their activities on a cross-border basis and will give rise to regulatory arbitrage. The crypto-asset market is still modest in size and does not yet pose a threat to financial stability. It is, however, likely that a subset of crypto- assets which aim to stabilise their price by linking their value to a specific asset or a basket of assets could be widely adopted by consumers. Such a development could raise additional challenges to financial stability~~, monetary policy transmission or monetary sovereignty~~.

Amendment 270 #

Proposal for a regulation
Article 4 – paragraph 1 – point a

(a) is a legal entity or a decentralised autonomous organisation;

Amendment 271 #

Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)

(ba) has received authorisation from a competent authority;

Amendment 272 #

Proposal for a regulation
Article 4 – paragraph 1 – point c

(c) has notified ~~that crypto-asset white paper~~and obtained the approval by ESMA of the crypto-asset key information sheet in accordance with Article 7;

Amendment 273 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 4 – paragraph 1 – point e c (new)

(ec) issues crypto-assets which are generated through ‘proof of stake’ mechanisms;

Amendment 276 #

Proposal for a regulation
Article 4 – paragraph 2 – introductory part

2. Paragraph 1~~, points (b) to (d)~~ shall not apply where:

Amendment 277 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 4 – paragraph 2 – point a

~~(a) the crypto-assets are offered for free;~~deleted

Amendment 278 #

Proposal for a regulation
Article 4 – paragraph 2 – point b

~~(b) the crypto-assets are automatically created through mining as a reward for the maintenance of the DLT or the validation of transactions;~~deleted

Amendment 279 #

Eero HEINÄLUOMA, Pedro MARQUES, Victor NEGRESCU, Aurore LALUCQ

Proposal for a regulation
Article 4 – paragraph 2 – point b

~~(b) the crypto-assets are automatically created through mining as a reward for the maintenance of the DLT or the validation of transactions;~~deleted

Amendment 28 #

Victor NEGRESCU

Proposal for a regulation
Recital 4

(4) The lack of an overall Union framework for crypto-assets can lead to a lack of users’ confidence in those assets, which will hinder the development of a market in those assets and can lead to missed opportunities in terms of innovative digital services, alternative payment instruments or new funding sources for Union companies. The EU should be a global leader on this matter and should provide adequate funding for this technology while being prudent with the risks associated with this technology. In addition, companies using crypto-assets will have no legal certainty on how their crypto-assets will be treated in the different Member States, which will undermine their efforts to use crypto-assets for digital innovation. The lack of an overall Union framework on crypto-assets could also lead to regulatory fragmentation, which will distort competition in the Single Market, make it more difficult for crypto-asset service providers to scale up their activities on a cross-border basis and will give rise to regulatory arbitrage. The crypto-asset market is still modest in size and does not yet pose a threat to financial stability. It is, however, likely that a subset of crypto- assets which aim to stabilise their price by linking their value to a specific asset or a basket of assets could be widely adopted by consumers. Such a development could raise additional challenges to financial stability, monetary policy transmission or monetary sovereignty.

Amendment 280 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Aurore LALUCQ

Proposal for a regulation
Article 4 – paragraph 2 – point c

~~(c) the crypto-assets are unique and not fungible with other crypto-assets;~~deleted

Amendment 281 #

Proposal for a regulation
Article 4 – paragraph 2 – point c

~~(c) the crypto-assets are unique and not fungible with other crypto-assets;~~deleted

Amendment 282 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 4 – paragraph 2 – point c

(c) the crypto-assets are unique and not fungible with other crypto-assets; are not fractionable and transferable directly to other holders without the issuer’s permission, are accepted only by the issuer, including merchant’s loyalty schemes, represent IP rights, guarantees, certificate authenticity of a unique physical asset, or any other right not linked to the ones that financial instruments bear, and are not accepted to trading at a crypto-asset exchange;

Amendment 283 #

Proposal for a regulation
Article 4 – paragraph 2 – point d

~~(d) the crypto-assets are offered to fewer than 150 natural or legal persons per Member State where such persons are acting on their own account;~~deleted

Amendment 284 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 4 – paragraph 2 – point d

(d) the crypto-assets are offered to fewer than 1500 natural or legal persons per Member State where such persons are acting on their own account;

Amendment 285 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 4 – paragraph 2 – point e

(e) over a period of 12 months, the total consideration of an offer to the public of crypto-assets in the Union does not exceed EUR 1 000 000, or the equivalent amount in another currency or in crypto-assets;deleted

Amendment 286 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 4 – paragraph 2 – point e

(e) over a period of 12 months, the total consideration of an offer to the public of crypto-assets in the Union does not exceed EUR 18 000 000, or the equivalent amount in another currency or in crypto- assets;

Amendment 287 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Engin EROGLU

Proposal for a regulation
Article 4 – paragraph 2 – point e

Amendment 288 #

Proposal for a regulation
Article 4 – paragraph 2 – point e

(e) over a period of 12 months, the total consideration of an offer to the public of crypto-assets in the Union does not exceed EUR 15 000 000, or the equivalent amount in any other currency or in crypto- assets;

Amendment 289 #

Proposal for a regulation
Article 4 – paragraph 2 – point e

(e) over a period of 12 months, the total consideration of an offer to the public of crypto-assets in the Union does not exceed EUR 12 000 000, or the equivalent amount in another currency or in crypto- assets;

Amendment 29 #

Proposal for a regulation
Recital 4

(4) The lack of an overall Union framework for crypto-assets can lead to a lack of users’ confidence in those assets, which will hinder the development of a market in those assets and can lead to missed opportunities in terms of innovative digital services, alternative payment instruments or new funding sources for Union companies. In addition, companies using crypto-assets will have no legal certainty on how their crypto-assets will be treated in the different Member States, which will undermine their efforts to use crypto-assets for digital innovation. The lack of an overall Union framework on crypto-assets could also lead to regulatory fragmentation, which will distort competition in the Single Market, make it more difficult for crypto-asset service providers to scale up their activities on a cross-border basis and will give rise to regulatory arbitrage. The crypto-asset market is still modest in size and does not yet pose a threat to financial stability. It is, however, likely that a subset of crypto- assets which aim to stabilise their price by linking their value to a specific asset or a basket of assets could be widely adopted by consumers. Such a development could raise additional challenges to financial stability, monetary policy transmission or monetary sovereignty. Regulation should be seen as a way of protecting consumers but also as a way of facilitating, rather than hindering, innovation and economic initiative. Failure to provide appropriate Union regulation of crypto currencies would threaten the competitiveness of the Union and its Member States at a global level and would jeopardise the Union’s ambitions of becoming a leader in the field of sustainable development, technology and digitisation.

Amendment 290 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 4 – paragraph 2 – point f

~~(f) the offer to the public of the crypto-assets is solely addressed to qualified investors and the crypto-assets can only be held by such qualified investors.~~deleted

Amendment 291 #

Proposal for a regulation
Article 4 – paragraph 2 – point f

~~(f) the offer to the public of the crypto-assets is solely addressed to qualified investors and the crypto-assets can only be held by such qualified investors.~~deleted

Amendment 292 #

Proposal for a regulation
Article 4 – paragraph 2 – point f a (new)

(fa) the crypto assets are specific- purpose crypto assets that can only be used for purchases of a specific store or network of stores, cannot be transferred between holders and do not have a wider general-purpose use-case;

Amendment 293 #

Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 2

For the purpose of point (a), crypto-assets shall not be considered to be offered for free where purchasers are required to provide or to undertake to provide personal data to the issuer or offeror in exchange for those crypto-assets, or where the issuer or offeror of those crypto-assets receives from the prospective holders of those crypto-assets any third party fees, commissions, monetary benefits or non- monetary benefits in exchange for those crypto-assets.

Amendment 294 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 2

Amendment 295 #

Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 2

Amendment 296 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1 a (new)

Where utility tokens in operation are offered to third parties for the sole purpose of ensuring access to the relevant good or service, they may be offered directly by issuers or offerors to third parties.

Amendment 297 #

Proposal for a regulation
Article 4 – paragraph 3

3. ~~Where the offer to the public of crypto-assets, other than asset-referenced tokens or e-money tokens, concerns utility tokens for a service that is not yet in operation, t~~The duration of the public offer as described in the crypto-asset white paper shall not exceed 12 months.

Amendment 298 #

Proposal for a regulation
Article 4 – paragraph 3

3. Where the offer to the public of crypto-assets, other than asset-referenced tokens or e-money tokens, concerns utility tokens for agoods or services that is not yet in operation, the duration of the public offer as described in the crypto-asset white paper shall not exceed 12 months.

Amendment 299 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. The operator of a trading platform shall be liable to comply with this Article when crypto-assets are admitted to trading on its own initiative. The operator of a trading platform shall ensure compliance and be liable for such compliance when a person seeking admission of a crypto-assets to trading is established in a third country. In such case, the operator of the trading platform shall ensure that the person seeking admission of a crypto-assets to trading provides all the necessary information to enable the operator to comply with the requirements set out in this Article.

Amendment 30 #

Proposal for a regulation
Recital 4 a (new)

(4a) The European Union seeks to fulfil a leading role on the world stage in the field of innovation and long-term economic growth. Cryptographic assets are rarely and inconsistently regulated in individual countries, which reduces the confidence of a number of companies and consumers in this area. Thanks to the creation of harmonised and predictable legal frameworks in all 27 Member States, the European Union will be able to attract a significant amount of investment and increase its competitiveness and leading position in the field of technology and innovation. By recognising and accepting the value of blockchain technology, the Union would set itself apart and put itself in a favourable position compared with world economies that are still reluctant or openly hostile towards crypto-assets.

Amendment 300 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. If the offeror of crypto-assets or crypto-asset service provider publicly offers crypto-assets other than asset- referenced tokens or e-money tokens, or requests that such crypto-assets be authorised for trading on a trading platform for crypto-assets, this entity is obliged to observe the requirements of this regulation in relation to such crypto- assets, not the crypto-asset issuers.

Amendment 301 #

Proposal for a regulation
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 302 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. No additional white paper shall be required in any subsequent offer of crypto-assets or when seeking admission to trading within a period of twelve months from the date of the initial offer as long as a white paper is available in accordance with Article 5, updated in accordance with Article 11, and the offeror responsible for drawing up such white paper consents to its use by means of a written agreement.

Amendment 303 #

Proposal for a regulation
Article 4 – paragraph 3 a (new)

3a. Where the issuer is a decentralised autonomous organisation, competent authorities shall ensure that steps comparable to those set out in Paragraph 1, points (b) to (d) have been taken.

Amendment 304 #

Proposal for a regulation
Article 4 – paragraph 3 b (new)

3b. 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 305 #

Proposal for a regulation
Article 4 a (new)

Article 4a Paragraph 4 new. The crypto-asset white paper shall specify a minimum amount necessary to carry out the offer to the public of crypto-assets (‘soft cap’). Where subscriptions fail to reach the soft cap by the end of the subscription period, the offer to the public of crypto-assets shall lapse and all funds collected shall be returned to the investors. The soft cap shall be set at an amount no less than EUR 100 000. This system shall offer sufficient guarantees ensuring its reliability, operability and efficiency. The issuer of crypto-assets, other than asset- referenced tokens ore-money tokens, shall put in place a procedure to record all incoming subscriptions received during the offer, in order to be able to calculate at any time the consolidated proceed from the offer, taking into account all funds and crypto-assets raised, and monitor whether the soft cap is reached. The issuer ensures that the funds and crypto- asset collected via the offering cannot be transferred to the recipient of the funds and digital assets or used by said recipient if the minimum amount necessary to complete the issue (soft cap), as defined by the token issuer in the information document, is not reached.

Amendment 306 #

Proposal for a regulation
Article 5 – title

5 Content and form of the ~~crypto- asset white paper~~key information sheet

Amendment 307 #

Proposal for a regulation
Article 5 – paragraph 1 – point a

(a) a detailed description of the issuer ~~and a presenta~~, including a summary of key financial information regarding the issuer and a detailed description of the main participants involved in the project's design and development;

Amendment 308 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK, Gilles BOYER, Stéphanie YON-COURTIN

Proposal for a regulation
Article 5 – paragraph 1 – point a

(a) a detailed description of the issuer and of the offeror, when different, and a presentation of the main participants involved in the project's design and development, when known;

Amendment 309 #

Proposal for a regulation
Article 5 – paragraph 1 – point a

(a) a detailed description of the issuer and offeror, when different, and a presentation of the main participants involved in the project's design and development;

Amendment 31 #

Proposal for a regulation
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 dedicated 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 ensure proportionate treatment of crypto-asset issuers and service providers, allowing equal opportunities for new market entry and development in the Member States. 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 regulate the underlying technology and should allow for the use of both permissionless and permission-based distributed ledgers. At the same time, it shall be recognised that some tokens do not represent payment means or investment assets and as such, shall be allowed to be issued and offered freely in the Union in so far as they are not offered as an investment or payment. Union legislation shall not set unnecessary and disproportionate regulatory burden on all use cases of the technology, if the Union and the Member States aim to remain competitive in a market which is naturally global. Sound regulation would preserve Member States’ competitiveness in the global financial and technology markets, and provide considerable benefits to their customers accessing cheaper, faster, and safer financial and asset-management services.

Amendment 310 #

Proposal for a regulation
Article 5 – paragraph 1 – point a

(a) a detailed description of the issuer and offeror (if different entities) and a presentation of the main participants involved in the project's design and development;

Amendment 311 #

Proposal for a regulation
Article 5 – paragraph 1 – point a a (new)

(aa) a detailed description of the issuer, including a summary of key financial information regarding the issuer, a detailed description of the issuer’s project, and a presentation of the main participants involved in the project's design and development;

Amendment 312 #

Proposal for a regulation
Article 5 – paragraph 1 – point a a (new)

(aa) if different from the issuer, the identification of the offeror, a description of the offeror’s relationship with the issuer, and a summary of key financial information regarding the offeror;

Amendment 313 #

Proposal for a regulation
Article 5 – paragraph 1 – point a a (new)

(aa) information about the offeror or the person seeking admission to trading if different from the issuer;

Amendment 314 #

Proposal for a regulation
Article 5 – paragraph 1 – point a b (new)

(ab) if different from the issuer, the identification of the offeror, a description of the offeror’s relationship with the issuer, and a summary of key financial information regarding the offeror;

Amendment 315 #

Proposal for a regulation
Article 5 – paragraph 1 – point a b (new)

(ab) the relevant key financial information on the issuer, or offeror or person seeking admission to trading, as applicable, for the purpose of assessing the ability to fulfil its obligations in relation to potential liability claims;

Amendment 316 #

Proposal for a regulation
Article 5 – paragraph 1 – point a c (new)

(ac) where applicable, information about the crypto-asset service provider operating a trading platform;

Amendment 317 #

Proposal for a regulation
Article 5 – paragraph 1 – point b

(b) a detailed description of the ~~issuer’s~~crypto- asset project, the type of crypto-asset that will be offered to the public or for which admission to trading is sought, the reasons why the crypto-assets will be offered to the public or why admission to trading is sought and the planned use of the fiat currency or other crypto-assets collected via the offer to the public;

Amendment 318 #

Proposal for a regulation
Article 5 – paragraph 1 – point b a (new)

(ba) if different from the issuer and the offeror, the identification of the person which prepared the white paper and the reason why that person prepared the white paper;

Amendment 319 #

Proposal for a regulation
Article 5 – paragraph 1 – point b a (new)

(ba) an independent assessment of the likely energy consumption of the crypto- asset where the "proof of work" model is used;

Amendment 32 #

Proposal for a regulation
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 and respecting the sovereignty of the States. 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 regulate the underlying technology and should allow for the use of both permissionless and permission-based distributed ledgers.

Amendment 320 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

(d) a detailed description ofn the ~~rights and obligations attached to the crypto- assets and the procedures and conditions for exercising those rights~~planned amount of the issue, in particular the minimum amount allowing the project to be carried out (‘soft cap’), the target amount, and the maximum amount that will automatically close the subscriptions when reached (‘hard cap’);

Amendment 321 #

Proposal for a regulation
Article 5 – paragraph 1 – point d

(d) a detailed description of the rights and obligations attached to the crypto- assets and the procedures and conditions ~~for~~by which the issuer, offeror and the consumer may exercis~~ing~~e those rights;

Amendment 322 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 5 – paragraph 1 – point e

(e) information on the ~~underlying technology and standards applied by the issue~~effective arrangements in place to monitor and safeguard the funds, or of ther crypto- assets ~~allowing for the holding, storing and transfer of those crypto-assets~~, raised during such offer;

Amendment 323 #

Proposal for a regulation
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 324 #

Proposal for a regulation
Article 5 – paragraph 1 – point e

(e) information on the underlying technology, protocols, and standards applied by the issuer of the crypto-assets allowing for the holding, storing and transfer of those crypto-assets;

Amendment 325 #

Proposal for a regulation
Article 5 – paragraph 1 – point f a (new)

(fa) a description of any adverse impact by the issuer or the crypto-asset project, including its consensus mechanism and underlying technology, on sustainability factors in relation to any adverse impact on climate and other environmental, social and governance adverse impacts;

Amendment 326 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 5 – paragraph 1 – point f b (new)

(fb) a declaration by the issuer, offeror or person seeking admission to trading or where applicable the operator of a trading platform or its management body that, to the best of their knowledge, the information contained in the key information sheet is in accordance with the facts and that the key information sheet makes no omission likely to affect its import;

Amendment 327 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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

3. The crypto-asset white paper shall contain the following statement: “The issuer of the crypto-assets is solely responsible for the content of this crypto- asset white paper. This crypto-asset white paper has not been reviewed or approved by any competent authority in any Member State of the European Union”.deleted

Amendment 33 #

Proposal for a regulation
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~~provide proportionate treatment of the different types of crypto-assets and issuing set-ups, thus allowing equal opportunities for market entry and ongoing and future development. It should also ensure financial stability 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 regulate the underlying technology and should allow for the use of both permissionless and permission-based distributed ledgers. At the same time it shall be recognised that some tokens do not represent payment means or investment assets and as such, shall be allowed to be issued and offered freely in the Union in so far as they are not offered as an investment or payment. The issuers and offerors of such tokens are in all case required to comply with general consumer protection rules applicable in the Union and shall not represent a threat to consumer protection. Union legislation shall not set unnecessary and unproportionate regulatory burden on all use cases of the technology, if the Union and the Member States aim to remain attractive to participants and consumers.

Amendment 330 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 5 – paragraph 3

3. The crypto-asset white paper shall contain the following statement: “The ~~issue~~offeror of the crypto-assets is solely responsible for the content of this crypto- asset white paper. This crypto-asset white paper has not been reviewed or approved by any competent authority in any Member State of the European Union”.

Amendment 331 #

Proposal for a regulation
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 332 #

Proposal for a regulation
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 ~~issue~~offeror of those crypto-assets can guarantee such future value.

Amendment 333 #

Proposal for a regulation
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 and assumes legal liability if this guarantee is not met.

Amendment 334 #

Proposal for a regulation
Article 5 – paragraph 5 – point d a (new)

(da) where applicable, the crypto-asset key information sheet shall contain a clear risk warning that the crypto-assets are not covered by the investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council nor by the deposit guarantee schemes established in accordance with Directive 2014/49/EU of the European Parliament and of the Council;

Amendment 335 #

Proposal for a regulation
Article 5 – paragraph 5 – point d a (new)

(da) 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 336 #

Proposal for a regulation
Article 5 – paragraph 6

6. Every crypto-asset white paper shall contain a statement from the management body of the ~~issue~~offeror of the crypto-assets. That statement shall confirm that the crypto-asset white paper complies with the requirements of this Title and that, to the best knowledge of the management body, the information presented in the crypto-asset white paper is correct and that there is no significant omission.

Amendment 337 #

Proposal for a regulation
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 ~~or in a language customary in the sphere of international finance~~.

Amendment 338 #

Proposal for a regulation
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 or in ~~a language customary in the sphere of international finance~~English.

Amendment 339 #

Proposal for a regulation
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 or in ~~a language customary in the sphere of international finance~~English.

Amendment 34 #

Eero HEINÄLUOMA, Victor NEGRESCU, Paul TANG, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Recital 5

Amendment 340 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
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

(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 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
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 343 #

Proposal for a regulation
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 and offeror of the crypto-assets concerned.

Amendment 344 #

Proposal for a regulation
Article 7 – title

~~Notification of the crypto-asset white paper~~Scrutiny and approval of the crypto-asset key information sheet, and, where applicable, of the marketing communications

Amendment 345 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Article 7 – paragraph 1

1. ~~Competent authorities shall not require an ex ante approval of a crypto- asset white paper, nor of any marketing communications relating to it before their publication~~A crypto-asset key information sheet shall not be published unless it has been approved by ESMA.

Amendment 346 #

Proposal for a regulation
Article 7 – paragraph 1

1. Competent authorities shall ~~not require an ex ante~~ approv~~al of~~e a crypto- asset white paper, ~~nor~~and 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 347 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 7 – paragraph 1

1. ~~Competent authorities~~ESMA shall not require an ex ante approval of a crypto- asset white paper, nor of any marketing communications relating to it before their publication.

Amendment 348 #

Proposal for a regulation
Article 7 – paragraph 1

1. Competent authorities shall not require an ex ante approval of a crypto- asset white paper, nor of any marketing communications relating to it before their publication. It shall, however, be possible for issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, to ask the competent authority for ex-ante approval of a white paper. The approval of the crypto-asset white paper shall be valid throughout the Union.

Amendment 349 #

Proposal for a regulation
Article 7 – paragraph 1

1. Competent authorities shall ~~not~~ require an ex ante approval of a crypto- asset white paper, ~~nor~~and of any marketing communications relating to it before their publication.

Amendment 35 #

Proposal for a regulation
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. We should ensure the proportionate treatment of issuers of crypto-assets and service providers, guaranteeing an equal chance of market access and development in the Member States. 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 regulate the underlying technology and should allow for the use of both permissionless and permission-based distributed ledgers. Union legislation does not impose unnecessary and disproportionate regulatory burdens in all cases of the use of technology since the Union and the Member States seek to maintain competitiveness on a global market. Correct regulation maintains the competitiveness of the Member States on international financial and technological markets and provides clients with significant benefits in terms of access to cheaper, faster and safer financial services and asset management.

Amendment 350 #

Proposal for a regulation
Article 7 – paragraph 2

2. Issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, shall notify their crypto-asset white paper, and, in case of marketing communications as referred to in Article 6, such marketing communications, to the ~~competent authority of their home Member State~~ESMA at least 20 working days before publication of the crypto-asset white paper. ~~That competent authority~~ESMA may exercise the powers laid down in Article 82(1).

Amendment 351 #

Proposal for a regulation
Article 7 – paragraph 2

2. Issuers, offerors or persons seeking admission to trading of crypto-assets, other than asset-referenced tokens or e- money tokens, or the operator of a trading platform, where applicable, shall notify their crypto-asset white paper, and, in case of marketing communications as referred to in Article 6, such marketing communications, to ~~the competent authority of their home Member State at least 20 working days before publication of the crypto-asset white paper. That competent authority~~ESMA. ESMA may exercise the powers laid down in Article 82(1).

Amendment 352 #

Proposal for a regulation
Article 7 – paragraph 2

2. ~~Issue~~Offerors of crypto-assets, other than asset-referenced tokens or e-money tokens, shall notify their crypto-asset white paper, and, in case of marketing communications as referred to in Article 6, such marketing communications, to the competent authority of their home Member State at least 20 working days before publication of the crypto-asset white paper. That competent authority may exercise the powers laid down in Article 82(1).

Amendment 353 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 7 – paragraph 3 – point a

(a) a financial instrument as defined in Article 4(1), point (15), of Directive 2014/65/EU or a crypto-asset which is deemed to be equivalent to a financial instrument in accordance with the criteria to be specified by ESMA in accordance with Article 2a;

Amendment 354 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
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 355 #

Proposal for a regulation
Article 7 – paragraph 3 – point d a (new)

(da) payment instruments with restrictions on spending under point (k) in the first paragraph of Article 3 of Directive (EU) 2015/2366;

Amendment 356 #

Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1

4. Issuers, offerors or persons seeking admission to trading of crypto-assets, other than asset-referenced tokens or e- money tokens, shall, together with the notification referred to in paragraphs 2 and 3, ~~provide the competent authority of their home Member State with a list of host Member States, if any, where~~inform ESMA of the starting date of they intend toed offer ~~their crypto-assets~~ to the public or intend ~~to seek~~ed admission to trading on such a trading platform for crypto-assets. ~~They~~ESMA shall ~~also inform their home Member State of the st~~notify the issuer, the offeror or the person asking for admission to trading of its decision regartding ~~date of the intended offer to~~the approval of the crypto-asset key information sheet within 10 working days of the psub~~lic or intended admission to trading on such a trading platform for crypto-assets~~mission of the draft crypto-asset key information sheet. Where ESMA fails to take a decision within such time limit, such failure shall not be deemed to constitute approval of the application.

Amendment 357 #

Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1

4. ~~Issue~~Offerors of crypto-assets, other than asset-referenced tokens or e-money tokens, shall, together with the notification referred to in paragraphs 2 and 3, provide the competent authority of their home Member State with a list of host Member States, if any, where they intend to offer their crypto-assets to the public or intend to seek admission to trading on a trading platform for crypto-assets. They shall also inform their home Member State of the starting date of the intended offer to the public or intended admission to trading on such a trading platform for crypto-assets.

Amendment 358 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 7 – paragraph 5

5. ~~Competent authorities shall communicate to ESMA the crypto-asset white papers that have been notified to them and the date of their notification.~~ ESMA shall make the notified crypto-asset white papers available in the register referred to in Article 57.

Amendment 359 #

Proposal for a regulation
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 36 #

Proposal for a regulation
Recital 5 a (new)

(5a) The consensus mechanisms used for the validation of transactions can have a substantial environmental impact. This is particularly the case for the consensus mechanism known as proof-of-work, which requires participating miners to solve computational puzzles and compensates them proportional to their computational effort. Rising prices of the associated crypto-asset create incentives for increases in computational power as well as the frequent replacement of mining hardware. As a result, proof-of- work is often associated with high energy consumption, a material carbon footprint and significant generation of electronic waste. These characteristics could undermine European and global efforts to achieve the climate and sustainability goals. The best-known application of the proof-of-work consensus mechanism is Bitcoin. According to most estimates, the energy consumption of the Bitcoin network equals that of entire countries. Moreover, between the period of 1 January 2016 and 30 June 2018, the Bitcoin network was responsible for up to 13 million metric tons of CO2 emissions. The increasing energy consumption was accompanied by a growth in mining equipment and a generation of significant of electronic waste. It is therefore urgent to introduce environmental sustainability criteria for crypto-assets. The Commission should identify those consensus mechanisms that could pose a threat to the environment having regard to energy consumption, carbon emissions, depletion of real resources, electronic waste and the specific incentive structures. These unsustainable consensus mechanisms should only be applied at small scale.

Amendment 360 #

Proposal for a regulation
Article 8 – paragraph 1

1. Issuers offerors or persons seeking admission to trading of crypto-assets, other than asset-referenced tokens or e- money tokens, shall 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 361 #

Proposal for a regulation
Article 8 – paragraph 1

1. Issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, shall publish their crypto-asset white paper, and, where applicable, their marketing communications, following authorisation, 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 362 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 8 – paragraph 1

1. ~~Issue~~Offerors of crypto-assets, other than asset-referenced tokens or e-money tokens, shall 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

2. The published crypto-asset white paper, and, where applicable, the marketing communications, shall be identical to the version ~~notifi~~approved toby the relevant competent authority in accordance with Article 7, or, where applicable, modified in accordance with Article 11.

Amendment 364 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 8 – paragraph 2

2. The published crypto-asset white paper, and, where applicable, the marketing communications, shall be identical to the version ~~notified to the relevant competent authority~~approved by ESMA in accordance with Article 7, or, where applicable, modified in accordance with Article 11.

Amendment 365 #

Proposal for a regulation
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 366 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 10 – paragraph 2

2. Issuers of crypto-assets, other than asset-referenced tokens or e-money tokens, that have published a crypto-asset white paper in accordance with Article 8, and where applicable Article 11, shall not be subject to any further information requirements, with regard to the offer of those crypto-assets or the admission of such crypto-assets to a trading platform for crypto-assets.deleted

Amendment 367 #

Proposal for a regulation
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 368 #

Proposal for a regulation
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. Any such modification requires authorisation from the competent authority.

Amendment 369 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 11 – paragraph 1 a (new)

1a. The issuer, offeror or person seeking admission to trading of crypto- assets, other than asset-referenced tokens or e-money tokens, shall immediately notify to ESMA the modified crypto-asset key information sheet, and where applicable, modified marketing communications, including the reasons for such modification. ESMA shall notify the issuer, the offeror or the person asking for admission to trading of its decision regarding the approval of the crypto-asset key information sheet within 5 working days of the submission of the draft crypto-asset key information sheet.

Amendment 37 #

Proposal for a regulation
Recital 5 a (new)

(5a) When thinking about its harmonised framework, the Union should also consider the need for a global conference on the regulation of crypto- assets in order to find jointly agreed solutions and avoid legislative ‘dumping’ that would jeopardise the financial and banking stability of Member States, and to prevent the creation of legislative discrepancies that are detrimental to consumer protection.

Amendment 370 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL, Ondřej KOVAŘÍK

Proposal for a regulation
Article 11 – paragraph 2

2. ~~The issuer~~Once, approved, the issuer or offeror or person seeking admission to trading, shall immediately inform the public on its website of the notification to ESMA of a modified crypto-asset ~~white paper with the competent authority of its home Member State~~key information sheet and shall provide a summary of the reasons for which it has notified a modified crypto- asset white paper.

Amendment 371 #

Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1

1. Issuers of crypto-assets, other than asset-referenced tokens and e-money tokens, shall offer a right of withdrawal to any consumer who buys such crypto-assets directly from the issuer or from a crypto- asset service provider placing crypto-assets on behalf of that issuer, and in case of modification of the white paper by the issuer.

Amendment 372 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
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 373 #

Proposal for a regulation
Article 13 – title

Obligations of issuers and offerors of crypto-assets, other than asset-referenced tokens or e- money tokens

Amendment 374 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 13 – paragraph 1 – introductory part

1. Issuers and offerors of crypto- assets, other than asset-referenced tokens or e-money tokens, shall:

Amendment 375 #

Proposal for a regulation
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 376 #

Proposal for a regulation
Article 13 – paragraph 2

2. ~~Issue~~Offerors of crypto-assets, other than asset-referenced tokens or e-money tokens, shall act in the best interests of the holders of such crypto-assets and shall treat them equally, unless any preferential treatment is disclosed in the crypto-asset white paper, and, where applicable, the marketing communications.

Amendment 377 #

Eero HEINÄLUOMA, Pedro MARQUES, Joachim SCHUSTER, Victor NEGRESCU

Proposal for a regulation
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, ~~issue~~offerors of such crypto-assets shall ensure that any funds collected from purchasers or potential purchasers are duly returned to them as soon as possible.

Amendment 378 #

Proposal for a regulation
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 379 #

Proposal for a regulation
Article 13 – paragraph 3

Amendment 38 #

Proposal for a regulation
Recital 5 b (new)

(5b) In line with the objectives of the Sustainable Finance Agenda, sustainability disclosures requirements as defined in Regulation (EU) 2019/2088 and the EU Taxonomy for sustainable activities should also apply to crypto assets as well as crypto-asset service provider and issuers.

Amendment 380 #

Proposal for a regulation
Article 14 – title

Liability of ~~issue~~offerors of crypto-assets, other than asset-referenced tokens or e-money tokens for the information given in a crypto-asset white paper

Amendment 381 #

Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 1

1. Where an ~~issue~~offeror of crypto-assets, other than asset-referenced tokens or e- money tokens, or its management body has infringed Article 5, by providing in its crypto-asset white paper or in a modified crypto-asset white paper information which is not complete, fair or clear or by providing information which is misleading, a holder of crypto-assets may claim damages from that ~~issue~~offeror of crypto-assets, other than asset-referenced tokens or e- money tokens, or its management body for damage caused to her or him due to that infringement.

Amendment 382 #

Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 1

1. Where an issuer of crypto-assets, other than asset-referenced tokens or e- money tokens, or its management body or the operator of an exchange that has admitted the crypto-assets to trading at its own initiative has infringed Article 5, by providing in its crypto-asset white paper or in a modified crypto-asset white paper information which is not complete, fair or clear or by providing information which is misleading, a holder of crypto-assets may claim damages from that issuer of crypto- assets, other than asset-referenced tokens or e- money tokens, or its management body or the operator of an exchange that has admitted the crypto-assets to trading at its own initiative for damage caused to her or him due to that infringement.

Amendment 383 #

Proposal for a regulation
Article 14 – paragraph 2

2. It shall be the responsibility of the holders of crypto-assets to present evidence indicating that the issuer of crypto-assets, other than asset-referenced tokens or e-money tokens, has infringed Article 5 and that such an infringement had an impact on his or her decision to buy, sell or exchange the said crypto- assets.deleted

Amendment 384 #

Proposal for a regulation
Article 14 – paragraph 2

2. It shall be the responsibility of the holders of crypto-assets to present evidence indicating that the ~~issue~~offeror of crypto-assets, other than asset-referenced tokens or e- money tokens, has infringed Article 5 and that such an infringement had an impact on his or her decision to buy, sell or exchange the said crypto-assets.

Amendment 385 #

Proposal for a regulation
Article 15 – paragraph 1

1. No ~~issuer of asset-referenced tokens shall, within the Union, offer such~~person or legal entity shall offer asset-referenced tokens to the public, or seek an admission of such assets to trading on a trading platform for crypto- assets in the Union, unless ~~such~~the issuers ~~have~~of such asset-referenced token has been authorised to do so in accordance with Article 19 by the competent authority of their home Member State.

Amendment 386 #

Proposal for a regulation
Article 15 – paragraph 1

1. No issuer of asset-referenced tokens shall, within the Union, offer such tokens to the public, or seek an admission of such assets to trading on a trading platform for crypto-assets, unless such issuers have been authorised to do so in accordance with Article 19 by ~~the competent authority of their home Member State~~ESMA.

Amendment 387 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Article 15 – paragraph 2 a (new)

2a. Legal entities referred to in paragraph 2 shall 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) a jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits.

Amendment 388 #

Proposal for a regulation
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

~~(b) the offer to the public of the asset- referenced tokens is solely addressed to qualified investors and the asset- referenced tokens can only be held by such qualified investors.~~deleted

Amendment 39 #

Proposal for a regulation
Recital 6

(6) Union legislation on financial services should ~~not favour one particular technology~~based on the principle ‘same business, same risks, same rules’ and follow a technologically neutral approach. Crypto-assets that qualify as ‘financial instruments’ as defined in Article 4(1), point (15), of Directive 2014/65/EU should therefore remain regulated under the general existing Union legislation, including Directive 2014/65/EU, regardless of the technology used for their issuance or their transfer. Moreover, crypto-assets that have the same or highly similar features to financial instruments should be treated as equivalent to financial instruments, insofar they provide profit or governance rights or a claim on a future cash flow, and should therefore be subject to the Union financial sector legislation and not to this Regulation. In order to achieve legal clarity with regard to which crypto- assets fall under the scope of this Regulation and which crypto-assets are excluded, the ESMA should specify the conditions under which a crypto-asset should be treated as a financial instrument because of its substance and regardless of its form.

Amendment 390 #

Proposal for a regulation
Article 15 – paragraph 3 – subparagraph 1 – point b

~~(b) the offer to the public of the asset- referenced tokens is solely addressed to qualified investors and the asset- referenced tokens can only be held by such qualified investors.~~deleted

Amendment 391 #

Proposal for a regulation
Article 15 – paragraph 3 – subparagraph 1 – point b

(b) the offer to the public of the asset- referenced tokens is solely addressed to ~~qualified~~institutional investors and the asset- referenced tokens can only be held by such ~~qualified~~institutional investors.

Amendment 392 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 15 – paragraph 3 – subparagraph 2

~~Issue~~Offerors of such asset-referenced tokens shall, however, produce a crypto-asset white paper as referred to in Article 17 and notify that crypto-asset white paper, and where applicable, their marketing communications, to the competent authority of their home Member State in accordance with Article 7.

Amendment 393 #

Proposal for a regulation
Article 15 – paragraph 4

4. Paragraph 1 shall not apply where the issuers of asset-referenced tokens are authorised as a credit institution in accordance with Article 8 of Directive 2013/36/EU. Such issuers shall, however, produce a crypto-asset white paper as referred to in Article 17, and submit that crypto-asset white paper for approval by the competent authority of their home Member State in accordance with paragraph 7.deleted

Amendment 394 #

Proposal for a regulation
Article 15 – paragraph 5

5. The authorisation granted by ~~the competent authority~~ESMA shall be valid for the entire Union and shall allow an issuer to offer the asset- referenced tokens for which it has been authorised throughout the Union, or to seek an admission of such asset-referenced tokens to trading on a trading platform for crypto-assets.

Amendment 395 #

Proposal for a regulation
Article 15 – paragraph 6

6. The approval granted by the competent authority of the issuers’ crypto- asset white paper under Article 19 or on a modified crypto-asset white paper under Article 21 shall be valid for the entire Union.deleted

Amendment 396 #

Proposal for a regulation
Article 15 – paragraph 7 – subparagraph 1

7. The EBSMA shall~~, in close cooperation with ESMA,~~ develop draft regulatory technical standards to specify the procedure for the approval of a crypto- asset white paper referred to in paragraph 4.

Amendment 397 #

EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after the entry into force].

Amendment 398 #

Proposal for a regulation
Article 15 – paragraph 7 a (new)

7a. Concerning asset-referenced tokens issues as decentralised crypto- assets or where the issuer(s) are located in third countries, a crypto-asset service provider operating a trading platform may also be authorised as offeror when it admits such asset-referenced tokens to trading on its own initiative. The authorisation of such offeror shall not be limited by to trading on the trading platform in question and shall not be limit other entities from applying for authorisation to offer the crypto-assets.

Amendment 399 #

Proposal for a regulation
Article 15 – paragraph 7 a (new)

7a. In the case of asset-reference tokens issued as decentralised crypto- assets, a crypto-asset service provider operating a trading platform may also be authorised as offeror when it admits such asset-referenced tokens to trading on its own initiative. The authorisation of such offeror shall not be limited to trading on the said trading platform and shall not limit other entities from applying for authorisation to offer the crypto-assets.

Amendment 40 #

Proposal for a regulation
Recital 6

(6) Union legislation on financial services should not favour one particular technology. Crypto-assets that qualify as ‘financial instruments’ as defined in Article 4(1), point (15), of Directive 2014/65/EU or as ´deposits´ as defined in Article 2 (1), point (3) of Directive 2014/49/EU of the European Parliament and the Council should therefore remain regulated under the general existing Union legislation, including Directive 2014/65/EU and Directive 2014/49/EU respectively, regardless of the technology used for their issuance or their transfer.

Amendment 400 #

Proposal for a regulation
Article 16 – paragraph 1

1. Issuers of asset-referenced tokens shall submit their application for an authorisation as referred to in Article 15 to ~~the competent authority of their home Member State~~ESMA.

Amendment 401 #

Proposal for a regulation
Article 16 – paragraph 2 – point d

(d) an independent and reasoned legal opinion that the asset- referenced tokens do not qualify as financial instruments, electronic money, deposits or structured deposits;

Amendment 402 #

Proposal for a regulation
Article 16 – paragraph 2 – point e a (new)

(ea) a description of the applicant crypto-asset service provider’s internal control mechanisms and procedures, referred to in [Article 30a], to ensure compliance with the obligations in relation to money laundering and terrorist financing under Directive(EU) 2015/849 of the European Parliament and of the Council;

Amendment 403 #

Proposal for a regulation
Article 16 – paragraph 2 – point e b (new)

(eb) a description of the policies and procedures to identify, manage and disclose any conflicts of interests;

Amendment 404 #

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
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 408 #

Proposal for a regulation
Article 16 – paragraph 2 a (new)

2a. Issuers that have already been authorised to issue an asset-referenced token previously, shall not be required to re-submit the information laid down in paragraph 2 if the issuer confirms that the information is still correct.

Amendment 409 #

Proposal for a regulation
Article 16 – paragraph 4 – subparagraph 1

4. The EBSMA shall~~, in close cooperation with ESMA,~~ develop draft regulatory technical standards to specify the information that an application shall contain, in addition to the information referred to in paragraph 2.

Amendment 41 #

Proposal for a regulation
Recital 6

(6) Union legislation on financial services should not favour one particular technology. Crypto-assets that qualify as ‘financial instruments’ as defined in Article 4(1), point (15), of Directive 2014/65/EU should therefore remain regulated under the general existing Union legislation, including Directive 2014/65/EU, regardless of the technology used for their issuance or their transfer. EU consumers will certainly still use blockchain technology and services provided via crypto-assets. The use of DLT is not compulsory since the technology is still being developed but crypto-asset service providers should have the option to use off-chain business models when this is appropriate and safe.

Amendment 410 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 16 – paragraph 4 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after the entry into force].

Amendment 411 #

Proposal for a regulation
Article 16 – paragraph 5 – subparagraph 1

5. The EBA shall, in close cooperation with ESMA, develop draft implementing technical standards to establish standard forms, templates and procedures for the application for authorisation, including the standard requirements to be met by the legal opinion referred to in point (d) of paragraph 2,in order to ensure uniformity across the Union.

Amendment 412 #

Proposal for a regulation
Article 16 – paragraph 5 – subparagraph 1

5. The EBSMA shall~~, in close cooperation with ESMA,~~ develop draft implementing technical standards to establish standard forms, templates and procedures for the application for authorisation.

Amendment 413 #

Proposal for a regulation
Article 16 – paragraph 5 – subparagraph 2

The EBSMA shall submit those draft implementing technical standards to the Commission by [please insert date 12 months after the entry into force].

Amendment 414 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Article 16 a (new)

Article 16a 1. An ART is deemed to be used as a means of payment in the meaning of Art 3(1)(3a). 2. Unless an ART purports to maintain a stable value by referring in part or in full, to at least the value of one or several official currencies of a country, the issuer of an ART may refute the presumption set out in Para. 1. To refute the presumption set out in Para. 1the issuer of an ART shall present objective grounds that the ART will not be allowed or is technically unable to be used as a means of payment. 3. The Competent Authority of the home Member State shall decide whether the issuer of an ART has refuted the presumption set out in Para. 1 in the procedures established in Articles 18 to 21. 4. The EBA shall, in close cooperation with ESMA and the European System of Central Banks, develop draft regulatory technical standards specifying objective grounds that shall refute the presumption set out in Para. 1. When specifying the objective grounds referred to in Para. 1, the EBA shall take into account:(a) the various types of business models of issuers of ARTs and their related ecosystem;(b) technological definitions on the DLT or similar technology, such as denomination, holding constraints or other restraints on potential buyers;(c) levels of volatility;(d) the usage of the token;(e) additional factors such as money supply, number of transactions and customers, average transaction size, marketing methods, concentration on certain financial institutions or volatility of ARTs. The EBA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after entry into force]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Amendment 415 #

Proposal for a regulation
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 416 #

Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point e

(e) detailed information on the nature and enforceability of the rights of holders, including ~~any direct~~(i) redemption right ~~or any claims,~~s that holders of asset- referenced tokens ~~and any legal or natural person as referred in Article 35(3), may have on the~~have against the issuer in accordance with [paragraph 1 of Article 32]; (ii) any other rights that holders of asset- resfer~~ve assets or against the issuer~~enced tokens may have against the issuer or in respect of the reserve assets, including how such rights may be treated in insolvency procedures. ;

Amendment 417 #

Eero HEINÄLUOMA, Joachim SCHUSTER, Pedro MARQUES, Victor NEGRESCU

Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point e

(e) detailed information on the nature and enforceability of rights, including ~~any~~: (i) information on the direct redemption right or any claims~~, that holders of asset-referenced tokens and any legal or natural person as~~ granted in accordance with Article 32; (ii) any other rights that holders of asset- referre~~d in Article 35(3)~~nced tokens, may have on the reserve assets or against the issuer, including how such rights may be treated in insolvency procedures.

Amendment 418 #

Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point f

~~(f) where the issuer does not offer a direct right on the reserve assets, detailed information on the mechanisms referred to in Article 35(4) to ensure the liquidity of the asset-referenced tokens;~~deleted

Amendment 419 #

Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 1 – point f

(f) ~~where the issuer does not offer a direct right on the reserve assets, de~~detailed information on the stabil~~ed information on the~~isation mechanisms referred to in Article 35(4), including, where applicable, any proposed arrangements to ensure the liquidity of the asset-referenced tokens;

Amendment 42 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Recital 7

(7) C~~rypto-assets issued by central banks acting in their monetary authority capacity~~onsiders it necessary to carry out evaluations to determine whether virtual currency issues by the ECB or by other public authorities should ~~not~~ be subject to the Union framework covering crypto-assets~~, and neither should services related to crypto- assets that are provided by such central banks or other public authorities~~.

Amendment 420 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
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

For the purposes of point (e), where no direct claim or redemption right has been granted to all the holders of asset- referenced tokens, the crypto-asset white paper shall contain a clear and unambiguous statement that all the holders of the crypto-assets do not have a claim on the reserve assets, or cannot redeem those reserve assets with the issuer at any time.deleted

Amendment 423 #

Proposal for a regulation
Article 17 – paragraph 1 – subparagraph 2

Amendment 424 #

Proposal for a regulation
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 ~~or in a language customary in the sphere of international finance~~.

Amendment 425 #

Proposal for a regulation
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 or in ~~a language customary in the sphere of international finance~~English.

Amendment 426 #

Proposal for a regulation
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 427 #

Proposal for a regulation
Article 18 – paragraph 1

1. ~~Competent authorities~~ESMA shall, within 20 working days of recei~~ving~~pt of an application for authorisation as referred to in Article 16 ~~shall, within 20 working days of receipt of such application~~, assess whether that application, including the crypto-asset ~~white paper~~key information sheet referred to in Article 16(2), point (i), is complete. They shall immediately notify the applicant issuer of whether the application, including the crypto-asset ~~white paper~~key information sheet, is complete. Where the application, including the crypto-asset ~~white paper~~key information sheet, is not complete, it~~hey~~ shall set a deadline by which the applicant issuer is to provide any missing information.

Amendment 428 #

Proposal for a regulation
Article 18 – paragraph 2

2. ~~The competent authorities~~ESMA shall, within 3 months from the receipt of a complete application, assess whether the applicant issuer complies with the requirements set out in this Title and take a fully reasoned draft decision granting or refusing authorisation. Within those three months, competent authorities may request from the applicant issuer any information on the application, including on the crypto- asset ~~white paper~~key information sheet referred in Article 16(2), point (i).

Amendment 429 #

Proposal for a regulation
Article 18 – paragraph 3

3. ~~Competent authorities~~ESMA shall, after the three months referred to in paragraph 2, transmit ~~their~~its draft decision to the applicant issuer, and ~~their~~its draft decision and the application file to the EBA~~, ESMA~~ and the ECB. Where the applicant issuer i~~s established~~ntends to make an offer of crypto- assets to the public or is seeking admission to trading in a Member State the currency of which is not the euro, or where a currency that is not the euro is included in the reserve assets, ~~competent authorities~~ the ESMA shall consult the central bank of that Member State. Applicant issuers shall have the right to provide ~~their competent authority~~ESMA with observations and comments on their draft decisions.

Amendment 43 #

Proposal for a regulation
Recital 7

(7) Crypto-assets ~~issued~~and 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 430 #

Proposal for a regulation
Article 18 – paragraph 3

3. Competent authorities shall, after the three months referred to in paragraph 2, transmit their draft decision to the applicant issuer, and their draft decision and the application file to the EBA~~, ESMA and the ECB~~ and ESMA. Where the applicant issuer is established in a Member State the currency of which is not the euro, or where a currency that is not the euro is included in the reserve assets, competent authorities shall consult the central bank of that Member State. Applicant issuers shall have the right to provide their competent authority with observations and comments on their draft decisions.

Amendment 431 #

Proposal for a regulation
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~~n opinion on the application and transmit their ~~non-binding~~ opinions to the ~~competent authority concerned. That competent authority~~ESMA. ESMA shall duly consider those ~~non-binding~~ opinions and the observations and comments of the applicant issuer and refuse the authorisations in the cases indicated in Article 19 (2).

Amendment 432 #

Proposal for a regulation
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~~of receiveding the draft decision and the application file, issue a ~~non- binding~~n opinion on the application and transmit their ~~non-binding~~ opinions to the competent authority concerned. ~~That~~Opinions should be non-binding with the exception of those of the ECB and the Member States’ central banks on monetary policy and financial stability issues. The competent authority shall duly consider those ~~non-binding~~ opinions and the observations and comments of the applicant issuer.

Amendment 433 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
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 434 #

Proposal for a regulation
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~~n opinion on the application and transmit their non-binding opinions to the competent authority concerned. Opinions shall be non-binding with the exception of those of the ECB and the Member States’ central banks on the application of monetary policy and ensuring the secure handling of payments. That competent authority shall duly consider those non-binding opinions and the observations and comments of the applicant issuer. If the ECB or, where applicable, a central bank referred to in paragraph 3, issues a negative opinion due to monetary policy or payment considerations, the competent authority must refuse the application for authorisation and inform the applicant issuer of the decision.

Amendment 435 #

Proposal for a regulation
Article 18 – paragraph 4

4. The EBA, and 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. That competent authority shall duly consider those non-binding opinions and the observations and comments of the applicant issuer.

Amendment 436 #

Proposal for a regulation
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. That competent authority shall duly consider those non-binding opinions and the observations and comments of the applicant issuer. If the ECB (or the central bank in the relevant cases) delivers a negative opinion because of monetary policy considerations, the competent authority should refuse the application for authorisation and inform the applicant issuer of the decision.

Amendment 437 #

Proposal for a regulation
Article 19 – paragraph 1

1. Competent authorities shall, within ~~one month~~six weeks after having received the non- binding opinion 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 438 #

Proposal for a regulation
Article 19 – paragraph 1

1. ~~Competent authorities~~ESMA shall, within one month after having received the ~~non- binding~~ opinion 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 439 #

Proposal for a regulation
Article 19 – paragraph 1

1. Competent authorities shall, within one month ~~after having~~of receiveding the ~~non- binding~~ opinion 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 44 #

Proposal for a regulation
Recital 7

(7) Crypto-assets and central bank money based on DLT or in a digital form issued 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 based on DLT or in a digital form that are provided by such central banks or other public authorities.

Amendment 440 #

Proposal for a regulation
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 441 #

Proposal for a regulation
Article 19 – paragraph 1 a (new)

1a. If the competent authority fails to take a decision pursuant to paragraph 1, such failure shall not constitute a silent approval of the application.

Amendment 442 #

2. ~~Competent authorities~~ESMA shall refuse authorisation where there are objective and demonstrable grounds for believing that:

Amendment 443 #

Proposal for a regulation
Article 19 – paragraph 2 – point b

(b) tThe applicant ~~issuer fails to meet or is likely to~~offeror fails to meet any of the requirements of this Title;

Amendment 444 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Joachim SCHUSTER, Pedro MARQUES, Aurore LALUCQ

Proposal for a regulation
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~~based on criteria as specified in the Regulation.

Amendment 445 #

Proposal for a regulation
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 446 #

Proposal for a regulation
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 of Member States, based on criteria as shall be specified in a delegated or implementing act issued in accordance with article 121.

Amendment 447 #

Proposal for a regulation
Article 19 – paragraph 2 – point c a (new)

(ca) the EBA has assessed that the asset-referenced token has a payment function and gives a negative opinion;

Amendment 448 #

Proposal for a regulation
Article 19 – paragraph 2 – point c b (new)

(cb) the ECB or the national central banks of the ESCB give a negative opinion within their exclusive competence for the conduct of the monetary policy, and the promotion of the smooth operation of payment systems.

Amendment 449 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 19 – paragraph 3 – introductory part

3. Competent authorities shall inform the EBA, ESMA and ~~the ECB and, where applicable,~~ the central banks referred to in Article 18(3), of all authorisations granted. ESMA shall include the following information in the register of crypto-assets and crypto-asset service providers referred to in Article 57:

Amendment 45 #

Proposal for a regulation
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 450 #

Proposal for a regulation
Article 19 – paragraph 3 – introductory part

3. ~~Competent authorities~~The ESMA shall inform the EBA~~, ESMA~~ and the ECB and, where applicable, the central banks referred to in Article 18(3), of all authorisations granted. ESMA shall include the following information in the register of crypto-assets and crypto-asset service providers referred to in Article 57:

Amendment 451 #

Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1 – introductory part

1. Competent authorities shall have the power to withdraw the authorisation of issuers of asset-referenced tokens in any of the following situations:

Amendment 452 #

Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1 – point g a (new)

(ga) the issuer fails to have in place effective measures and procedures to prevent, detect and investigate illicit activities connected to its asset-referenced tokens;

Amendment 453 #

Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1 – point g a (new)

(ga) the issuer's activities pose a serious risk to financial stability, market integrity, consumer protection or monetary policy transmission;

Amendment 454 #

Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1 – point g b (new)

(gb) the issuer’s activity poses a threat to financial stability, market integrity or investor and consumer protection.

Amendment 455 #

Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1 – point g c (new)

(gc) the ECB or the national central banks of the ESCB within their exclusive competences, issue a negative opinion that the asset-referenced tokens pose a serious threat to monetary policy transmission or monetary sovereignty and the smooth operation of payment systems.

Amendment 456 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Joachim SCHUSTER, Pedro MARQUES, Aurore LALUCQ

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 4

The competent authority may also consult the EBA, ESMA ~~and the ECB,~~ and, where applicable, the central banks of Member States the currency of which is not euro.

Amendment 457 #

Proposal for a regulation
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 458 #

Proposal for a regulation
Article 22 – paragraph 1 – subparagraph 1

1. WThe~~re an~~ issuer of asset-referenced tokens or its management body ~~has infringed Article 17, by~~is solely responsible for the information provid~~ing~~ed in its crypto-asset ~~white paper~~key information sheet or in a modified crypto- asset ~~white paper~~key information ~~which is not complete, fair or clear or by providing information which is misleading, a~~sheet and shall be held legally liable to pay compensation for any claim, loss or damage resulting from providing information which is not complete, fair or clear or misleading, in infringement of Article17. A holder of such asset- referenced tokens may claim damages from that issuer of asset- referenced tokens or its management body for damage caused to her or him due to that infringement, in accordance with the applicable national law as determined by the relevant rules of private international law.

Amendment 459 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, France JAMET

Proposal for a regulation
Article 22 – paragraph 2

2. It shall be the responsibility of the holders of asset-referenced tokens to present evidence indicating that the issuer of asset-referenced tokens has infringed Article 17 and that such an infringement had an impact on his or her decision to buy, sell or exchange the said asset- referenced tokens.deleted

Amendment 46 #

Proposal for a regulation
Recital 8

(8) Any legislation adopted in the field of crypto-assets should be specific, future- proof and be able to keep pace with innovation and technological developments and be based on incentivising approaches in order to ensure a consistent national legal competence, as well as rapid development for the industry. ‘Crypto- assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto- assets which ~~currently~~ fall outside the scope of current Union legislation on financial services. Such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. Any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the Financial Action Task Force (FATF)34. ~~For the same reason~~In order to avoid damaging or infringing Member States’ national competences in relation to control over their fiscal and monetary policies, any list of crypto-asset services should also encompass virtual asset services that are likely to raise money- laundering concerns and that are identified as such by the FATF. _________________ 34FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France (www.fatf- gafi.org/recommendations.html).

Amendment 460 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Article 23 a (new)

Article 23a Payment asset referenced tokens 1. Issuers of Payment asset referenced tokens (Payment ART) are subject to the rules and requirements set out in Title IV of this Regulation unless provided otherwise in this article. 2. Payment ART shall not be deemed to be ‘electronic money’ as defined in Article 2(2) of Directive2009/110/EC. 3. Each unit of Payment ART created shall be pledged at par value with an official currency unit of an EU member state. 4. Issuers of Payment ART shall issue Payment ART at par value and on the receipt of funds within the meaning of Article 4(25) of Directive 2015/2366. 5. Holders of Payment ART are entitled to claim redemption at any moment and at par value, of the monetary value of the Payment ART held, either in cash or by credit transfer. 6. Issuers of Payment ART shall prominently state the conditions of redemption in the crypto-asset white paper as referred to in Article 46. 7. Where the issuer of a Payment ART token does not fulfil legitimate redemption requests from holders of Payment ART within 30 days, the holder is entitled to claim redemption to any following third party entities that has been in contractual arrangements with issuers of Payment ART: (a) entities ensuring the safeguarding of funds received by issuers of Payment ART in exchange Payment ART in accordance with Article 7 of Directive 2009/110/EC; (b) any natural or legal persons in charge of distributing e-money tokens on behalf of issuers of e-money tokens.

Amendment 461 #

Eero HEINÄLUOMA, Pedro MARQUES, Joachim SCHUSTER, Victor NEGRESCU

Proposal for a regulation
Article 23 a (new)

Article 23a Requirements applicable to issuers of Payment ART 1. Issuers of Payment ART are subject to the rules and requirements set out in Title IV of this Regulation unless provided otherwise in this article. 2. Payment ART shall not be deemed to be ‘electronic money’ as defined in Article 2(2) of Directive 2009/110/EC. 3. Each unit of Payment ART created shall be pledged at par value with an official currency unit of an EU member state. 4. Issuers of Payment ART shall issue Payment ART at par value and on the receipt of funds within the meaning of Article 4 (25) of Directive 2015/2366. 5. Holders of Payment ART are entitled to claim redemption at any moment and at par value, of the monetary value of the Payment ART held, either in cash or by credit transfer. 6.Redemption may not be subject to a fee. Issuers of Payment ART shall prominently state the conditions of redemption in the crypto-asset whitepaper as referred to in Article 46. 7. Where the issuer of a Payment ART token does not fulfil legitimate redemption requests from holders of Payment ART within 30 days, the holder is entitled to claim redemption to any following third party entities that has been in contractual arrangements with issuers of Payment ART:(a) entities ensuring the safeguarding of funds received by issuers of Payment ART in exchange Payment ART in accordance with Article 7 of Directive 2009/110/EC;(b) any natural or legal persons in charge of distributing e- money tokens on behalf of issuers of e- money tokens.

Amendment 462 #

Proposal for a regulation
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 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 25 – paragraph 2

2. Where no direct claim or redemption right has been granted to all the holders of asset-referenced tokens, the marketing communications shall contain a clear and unambiguous statement that all the holders of the asset-referenced tokens do not have a claim on the reserve assets or cannot redeem those reserve assets with the issuer at any time.deleted

Amendment 464 #

Proposal for a regulation
Article 26 – paragraph 1

1. ~~Issue~~Offerors of asset-referenced tokens shall ~~at least every month and~~keep in a clear, accurate and transparent manner disclose on their website the amount of asset- referenced tokens in circulation and the value and the composition of the reserve assets referred to in Article 32. Such information shall be updated regularly, at minimum every three months.

Amendment 465 #

Proposal for a regulation
Article 26 – paragraph 1

1. ~~Issue~~Offerors of asset-referenced tokens shall at least every month and in a clear, accurate and transparent manner disclose on their website the amount of asset- referenced tokens in circulation and the value and the composition of the reserve assets referred to in Article 32.

Amendment 466 #

Proposal for a regulation
Article 26 – paragraph 2

2. Issuers of asset-referenced tokens shall publish as soon as possible ~~and in a~~on their website a brief, clear, accurate and transparent ~~manner disclose~~summary onf the~~ir website the outcome of the audit of~~ audit report as well as the full audit report in relation to the reserve assets referred to in Article 32.

Amendment 467 #

Proposal for a regulation
Article 26 – paragraph 2

2. Issuers of asset-referenced tokens shall ~~as soon as possible and~~not 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 468 #

Proposal for a regulation
Article 26 a (new)

Article 26a Reporting obligations to ESMA Issuers of asset-referenced tokens shall regularly report to ESMA on the developments in the markets in relation of their asset-referenced tokens. An issuer of asset-referenced tokens provide the following information to ESMA for each asset reference token: (a) the customer base; (b) the value and market capitalisation of the asset referenced tokens; (c) the size of the reserve; (d) the average number of transactions per day; (e) the average number of transactions linked with the purchase of goods or services.

Amendment 469 #

Proposal for a regulation
Article 27 – paragraph 1

1. Issuers of asset-referenced tokens shall establish and maintain effective and transparent procedures for the prompt, fair and consistent handling of complaints received from holders of asset-referenced tokens and other interested parties, including consumer associations. Where the asset-referenced tokens are distributed, totally or partially, by third- party entities as referred to in Article 30(5) point (h), issuers of asset-referenced tokens shall establish procedures to facilitate the handling of such complaints between holders of asset-referenced tokens and such third-party entities.

Amendment 47 #

Proposal for a regulation
Recital 8

(8) Any legislation adopted in the field of crypto-assets should be specific, future- proof ~~and~~, be able to keep pace with innovation and technological developments, and to be founded on an incentive-based approach to secure continued legal adequacy of Member States alongside the rapid innovation of the industry. ‘Crypto-assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto-assets which currently fall outside the scope of Union legislation on financial services. Such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. Any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the Financial Action Task Force (FATF)34 . For the same reason, any list of crypto-asset services should also encompass virtual asset services that are likely to raise money- laundering concerns and tha~~t are identified as such by the FATF~~rm the monetary policies of Member States. _________________ 34FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France (www.fatf- gafi.org/recommendations.html).

Amendment 470 #

Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 1

5. The ~~EBA, in close cooperation with~~ ESMA, shall develop draft regulatory technical standards to specify the requirements, templates and procedures for complaint handling.

Amendment 471 #

Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by ... [please insert date 12 months after the date of entry into force of this Regulation].

Amendment 472 #

Proposal for a regulation
Article 28 – paragraph 1 – subparagraph 1 – introductory part

1. Issuers of asset-referenced tokens shall ~~maintain and implement~~implement and maintain effective policies and procedures to prevent, identify, manage and disclose conflicts of interest between themselves and:

Amendment 473 #

Proposal for a regulation
Article 28 – paragraph 1 – subparagraph 1 – point d

(d) any natural persons who either own, directly or indirectly, more than 20% of the asset-~~back~~referenced 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 474 #

Proposal for a regulation
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

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 476 #

Proposal for a regulation
Article 28 – paragraph 5 – subparagraph 1 – introductory part

5. The EBSMA shall develop draft regulatory technical standards to specify:

Amendment 477 #

Proposal for a regulation
Article 28 – paragraph 5 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by ... [please insert date 12 months after the date of entry into force of this Regulation].

Amendment 478 #

Proposal for a regulation
Article 30 – paragraph 3

3. Natural persons who either own, directly or indirectly, more than 20% 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 and be fit and proper for the purpose of anti-money laundering and combatting the financing of terrorism.

Amendment 479 #

Proposal for a regulation
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 48 #

Proposal for a regulation
Recital 8

(8) Any legislation adopted in the field of crypto-assets should be specific, future- proof an, should be able to keep pace with innovation and technological developments and should be based on incentives by providing adequate legal solutions for innovation within the sector. ‘Crypto- assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto- assets which currently fall outside the scope of Union legislation on financial services. Such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. Any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the Financial Action Task Force (FATF)34. For the same reason, any list of crypto-asset services should also encompass virtual asset services that are likely to raise money-laundering concerns and ~~that are identified as such by the FATF~~damage the monetary policy of the Member States. _________________ 34FATF (2012--2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France (www.fatf- gafi.org/recommendations.html).

Amendment 480 #

Proposal for a regulation
Article 30 – paragraph 5 – subparagraph 1 – point b

(b) the custody of the reserve assets, including the segregation of assets, as specified in Article 33;

Amendment 481 #

Proposal for a regulation
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 482 #

Proposal for a regulation
Article 30 – paragraph 10

10. Issuers of asset-~~backed crypto- asset~~referenced tokens shall have systems and procedures in place that are adequate to safeguard the security, integrity and confidentiality of information as required by Regulation (EU) 2021/xx of the European parliament and of the Council56 . Those systems shall record and safeguard relevant data and information collected and produced in the course of the issuers’ activities. _________________ 56Proposal 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 483 #

Proposal for a regulation
Article 30 – paragraph 11

11. ~~Issue~~Offerors of asset-referenced tokens shall ensure that they are ~~regularly~~ audited by independent auditors when this is required by applicable law. The results of those audits shall be communicated to the management body of the ~~issue~~offeror concerned and made available to the competent authority.

Amendment 484 #

Proposal for a regulation
Article 30 – paragraph 11

11. Issuers of asset-referenced tokens shall ensure that they are regularly audited by independent ~~auditors~~external auditors, at least annually. The results of those audits shall be communicated to the management body of the issuer concerned and ~~made available to the competent author~~the ESMA at the latest within 4 weeks of the date of the valuation and shall be made publicly available without delay, unless the competent authority has requested a delay of such publication in the interest of the holders and financial stability.

Amendment 485 #

Proposal for a regulation
Article 30 – paragraph 12 – subparagraph 1 – introductory part

12. The ~~EBA, in close cooperation with~~ ESMA, shall develop draft regulatory technical standards specifying the minimum content of the governance arrangements on:

Amendment 486 #

Proposal for a regulation
Article 30 – paragraph 12 –subparagraph 1 – introductory part

12. The EBA, in close cooperation with ESMA and Member States, shall develop draft regulatory technical standards specifying the minimum content of the governance arrangements on:

Amendment 487 #

Proposal for a regulation
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 488 #

Proposal for a regulation
Article 30 – paragraph 12 – subparagraph 1 – point d

(d) the required auditable documentation and the audits referred to in paragraph 11;

Amendment 489 #

Proposal for a regulation
Article 30 – paragraph 12 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after entry into force].

Amendment 49 #

Proposal for a regulation
Recital 8

(8) Any legislation adopted in the field of crypto-assets should be specific, future- proof and be able to keep pace with innovation and technological developments. ‘Crypto-assets’ and ‘distributed ledger technology’ should therefore be defined as widely as possible to capture all types of crypto-assets, which have or may have a financial use, can be transferred between holders and which currently fall outside the scope of Union legislation on financial services. Such legislation should also contribute to the objective of combating money laundering and the financing of terrorism. Any definition of ‘crypto-assets’ should therefore correspond to the definition of ‘virtual assets’ set out in the recommendations of the Financial Action Task Force (FATF)34 . For the same reason, any list of crypto-asset services should also encompass virtual asset services that are likely to raise money- laundering concerns and that are identified as such by the FATF. _________________ 34FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France (www.fatf- gafi.org/recommendations.html).

Amendment 490 #

Proposal for a regulation
Article 30 – paragraph 12 a (new)

12a. When devising the RTS on governance arrangements referred to in paragraph 12, ESMA shall take into account the provisions in existing EU financial services legislation such as Directive 2014/65/EU.

Amendment 491 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 1 – point a

~~(a) EUR 350 000;~~deleted

Amendment 492 #

Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 1 – point a

(a) EUR 35200 000;

Amendment 493 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Joachim SCHUSTER, Pedro MARQUES

Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 1 – point b

(b) 25% of the average amount of the reserve assets referred to in Article 32.

Amendment 494 #

Proposal for a regulation
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 495 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 31 – paragraph 3 – point g a (new)

(ga) any vulnerability revealed by the results of the stress test referred to in Article 31a.

Amendment 496 #

Proposal for a regulation
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 497 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 31 – paragraph 4 – subparagraph 1 – introductory part

4. The ~~EBA, in close cooperation with~~ ESMA, shall develop draft regulatory technical standards further specifying:

Amendment 498 #

Proposal for a regulation
Article 31 – paragraph 4 – subparagraph 1 – point c

Amendment 499 #

Proposal for a regulation
Article 31 – paragraph 4 – subparagraph 1 – point c a (new)

(ca) the common reference parameters of the stress test scenarios to be included in the stress tests taking into account the factors specified in paragraph 1. The draft regulatory standards shall be updated at least every two years taking into account the latest market developments”.

Amendment 50 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Recital 8 a (new)

(8a) This regulation should only apply to crypto-assets that may be transferred among holders without the issuers permission. Crypto-assets that are unique and not fungible with other crypto-assets, which are not fractionable and are accepted only by the issuer, including merchant’s loyalty schemes, represent IP rights, guarantees, certificate authenticity of a unique physical asset, or any other right not linked to the ones that financial instruments bear, and are not accepted to trading at a crypto-asset exchange, should be excluded from the scope of this Regulation. However, this Regulation should explicitly apply if the non-fungible token grants to the holder or its issuer specific rights linked to those of financial instruments, such as profit rights or other entitlements. In these cases, the tokens may then be assessed and treated as “security tokens”, and be subject, as well as the issuer, to various requirements under relevant financial market regulations, such as Directive (EU) 2015/849 (the AMLD), Directive 2014/65/EU (the MiFID II), Regulation (EU) 2017/1129 (the Prospectus Regulation), Regulation (EU) No 596/2014 (the MAR) and the Directive 2014/57/EU (the MAD).

Amendment 500 #

Proposal for a regulation
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 501 #

Proposal for a regulation
Article 31 – paragraph 4 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after entry into force].

Amendment 502 #

Proposal for a regulation
Article 31 a (new)

Article 31a Stress testing 1. Issuers of asset-referenced tokens shall have in place sound stress testing processes that identify possible events or future changes in financial conditions which could have unfavourable effects on the asset-referenced token. Without prejudice to the provisions on digital operational resilience testing laid down in Regulation (EU) 2021/xx of the European Parliament and of the Council [DORA],the issuer of asset referenced tokens shall conduct, on a regular basis, stress testing that consider the effects of severe plausible scenarios. The stress test scenarios shall at least take into consideration reference parameters that include the following factors: (a) hypothetical changes in the level of liquidity of the assets held in the portfolio of the asset-referenced tokens; (b) hypothetical changes in the level of credit risk of the assets held in the portfolio of the asset-referenced tokens; (c) hypothetical movements of the interest rates and exchange rates; (d) hypothetical levels of redemption; (e) hypothetical widening or narrowing of spreads among indices to which interest rates of portfolio assets are tied; (f) hypothetical macrosystemic shocks affecting the economy as a whole. 2. Where the stress test reveals any vulnerability, the issuer of the asset- referenced tokens shall draw up a report with the results of the stress testing and an action plan and submit them to the ESMA. Where necessary, the issuer of the asset-referenced tokens shall take action to strengthen the robustness of the asset- referenced tokens, including actions that reinforce the liquidity or the quality of the assets of the asset-referenced tokens and shall immediately inform the ESMA of the measures taken.

Amendment 503 #

Proposal for a regulation
Article 32 – paragraph 1

1. Issuers of asset-references tokens shall at all times constitute and maintain a reserve of assets. to cover the claims from holders in respect to the asset referenced tokens in circulation. The aggregate value of reserve assets shall always be at least equal to the aggregate face value of the claims on the issuer from holders of asset- referenced tokens in circulation. For the purpose of calculating the aggregate face value of token holders’ claims, and for any valuation of the reserve assets under paragraph 5 of this Article, Article 30(11), point (c) of Article 35(2), Article 41 and Article 42, the face value of claims, and the value of funds and other reserve assets, including other crypto-assets, shall be expressed in the same official currency

Amendment 504 #

Proposal for a regulation
Article 32 – paragraph 1

1. Issuers of asset-references tokens shall at all times constitute and maintain a reserve of assets. The aggregate value of reserve assets shall always be at least equal to the aggregate face value of the claims on the issuer from holders of asset- referenced tokens in circulation. For the purpose of calculating the aggregate face value of tokenholders’ claims, and for any valuation of the reserve assets under paragraph 5, Article 30(11), point (c) of Article 35(2a), Article 41 and Article 42, the face value of claims, and the value of funds and other reserve assets, including other crypto-assets, shall be expressed in the same official currency.

Amendment 505 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 32 – paragraph 1

Amendment 506 #

Proposal for a regulation
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 507 #

Proposal for a regulation
Article 32 – paragraph 1 a (new)

1a. Issuers of asset-referenced tokens shall insulate the reserve assets against claims of other creditors in the interest of the holders of the asset-reference tokens.

Amendment 508 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 32 – paragraph 1 a (new)

1a. The reserve shall be composed and managed so as to cover at all times the risks associated to the claims from holders of the asset referred token.

Amendment 509 #

Proposal for a regulation
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 51 #

Proposal for a regulation
Recital 8 a (new)

(8a) This legislation should not apply to crypto-assets that are unique and not fungible with other crypto-assets, such as digital art and collectibles, whose value is inherent in the crypto-asset’s unique characteristics and the utility it gives to the token holder. The fractional parts of a unique and non-fungible crypto-asset should not be considered unique and not fungible. The sole attribution of a unique identifier to a crypto-asset is not sufficient to classify it as unique or not fungible. Similarly, it also does not apply to crypto- assets representing services, digital or physical assets that are unique, indivisible and not fungible, such as product guarantees, personalised products or services, or real estate

Amendment 510 #

Proposal for a regulation
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 511 #

Proposal for a regulation
Article 32 – paragraph 5

5. Without prejudice to Article 30(11), issuers of asset-referenced tokens shall mandate an independent audit of the reserve assets every six months, as of the date of its authorisation as referred to in Article 19. The result of the audit shall be notified to the competent authority without delay, at the latest within six weeks of the reference date of the valuation. The result of the audit shall be published within two weeks of the date of notification to the competent authority. The competent authority may instruct the issuer to delay the publication in the event that (a) the issuer has been required to implement recovery arrangement or measures in accordance with Article 41a(3); (b) the issuer has been required to implement an orderly wind-down of its activities in accordance with Article 42; (c) it is deemed necessary to protect the economic interests of holders of the asset- referenced token; (d) it is deemed necessary to avoid a significant adverse effect on the financial system of the home Member State or another Member State.

Amendment 512 #

Proposal for a regulation
Article 32 – paragraph 5

5. Without prejudice to Article 30(11), issuers of asset-referenced tokens shall mandate an independent audit of the reserve assets every six months, as of the date of its authorisation as referred to in Article 19. The result of the audit shall be notified to the competent authority without delay, at the latest within six weeks of the reference date of the valuation. The result of the audit shall be published within two weeks of the date of notification to the competent authority. The competent authority may instruct the issuer to delay the publication in the event that (a) the issuer has been required to implement recovery arrangement or measures in accordance with this regulation (b) the issuer has been required to implement an orderly wind-down of its activities in accordance with this regulation ; (c) it is deemed necessary to protect the economic interests of holders of the asset- referenced token; (d) it is deemed necessary to avoid a significant adverse effect on the financial system of the home Member State or another Member State.

Amendment 513 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 1– point a

(a) the reserve assets are legally and operationally segregated from the issuers’ own assets and insulated in the interest of the holders of asset-referenced tokens, in particular in the event of insolvency;

Amendment 514 #

Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 1 – point d a (new)

(da) concentration risks in the custody of reserve assets are avoided.

Amendment 515 #

Proposal for a regulation
Article 33 – paragraph 2 – point b a (new)

(ba) an investment firm registered in the Union in accordance with Directive (EU) 2019/2034 and Regulation (EU) 2019/2033 that provides the ancillary service of safekeeping and administration of financial instruments for the account of clients as defined in Annex I, Section B of Directive (EU) 2014/65.

Amendment 516 #

Proposal for a regulation
Article 33 – paragraph 4 – subparagraph 1 – point d a (new)

(da) excessive concentration risks in the custody of the reserve assets are avoided;

Amendment 517 #

Proposal for a regulation
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

~~(a) the credit institutions or the crypto-asset service providers have functionally and hierarchically separated the performance of their custody tasks from their potentially conflicting tasks;~~deleted

Amendment 519 #

Proposal for a regulation
Article 33 – paragraph 7 – point b

(b) the potential conflicts of interest have been properly identified, managed, monitored and disclosed by the issuer of the asset-referenced tokens to the holders of the asset-referenced tokens, in accordance with Article 28.deleted

Amendment 52 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Recital 8 b (new)

(8b) For the crypto-assets that are unique and not fungible with other crypto-assets, which are not fractionable and are accepted only by the issuer, represent IP rights, guarantees, certificate authenticity of a unique physical asset such as a piece of art, or any other right not linked to the ones that financial instruments bear, and are not accepted to trading at a crypto-asset exchange, it is proposed to consider whether an EU - wide bespoke regime should be proposed by the European Commission.

Amendment 520 #

Proposal for a regulation
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, concentration and credit risk. The investments shall be capable of being liquidated rapidly with minimal adverse price effect.

Amendment 521 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 522 #

Proposal for a regulation
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 523 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
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 working day’s prior notice;

Amendment 524 #

Proposal for a regulation
Article 34 – paragraph 4 –subparagraph 1 – point c a (new)

(ca) liquidity requirements establishing which percentage of the reserve assets should be made up 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 working day’s prior notice;

Amendment 525 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 526 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
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 five working days’ prior notice or cash which is able to be withdrawn by giving five working days’ prior notice;

Amendment 527 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 five working days’ prior notice, or cash which is able to be withdrawn by giving five working days’ prior notice;

Amendment 528 #

Proposal for a regulation
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 529 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c c (new)

(cc) concentration requirements preventing the issuer from investing more than a certain percentage of assets issued by a single body;

Amendment 53 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 9

Amendment 530 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1– point c c (new)

(cc) concentration requirements preventing the issuer from investing more than a certain percentage of assets issued by a single body;

Amendment 531 #

Proposal for a regulation
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 532 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c d (new)

(cd) concentration requirements preventing the issuer from keeping in custody more than a certain percentage of crypto-assets or assets with crypto-assets service providers or credit institutions belonging to the same group, as defined in Article 2(11) of Directive 2013/34/EU of the European Parliament and of the Council1a. _________________ 1aDirective 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).

Amendment 533 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
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 534 #

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 – point c d (new)

(cd) issuer from keeping in custody more than a certain percentage of crypto- assets or assets with crypto-asset service providers or credit institutions which belong to the same group, as defined in Article 2(11) of Directive 2013/34/EU of the European Parliament and of the Council(*);

Amendment 535 #

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 1 a (new)

The ESMA shall devise suitable thresholds to determine liquidity and concentration requirements. When doing so, the ESMA shall take into account the relevant thresholds laid down in Directive 2009/65/EC.

Amendment 536 #

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 2

EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after entry into force].

Amendment 537 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Aurore LALUCQ, Pedro MARQUES

Proposal for a regulation
Article 34 – paragraph 4 – subparagraph 3

~~Power is~~ delegated ~~to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.~~

Amendment 538 #

Proposal for a regulation
Article 35 – paragraph 1

Amendment 539 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 35 – paragraph 1

1. ~~Issuers~~Each unit of asset-referenced tokens shall establish, maintain and implement clear and detailed policies and procedures on the rights granted to holders of asset- referenced tokens, including any direct claim or redemption rights on the issuer of those asset-referenced tokens or on the reserve assets created shall be pledged at par value with an official currency unit of an EU Member State.

Amendment 54 #

Proposal for a regulation
Recital 9

Amendment 540 #

Proposal for a regulation
Article 35 – paragraph 1

1. Issuers of asset-referenced tokens shall ~~establish, maintain and implement clear and detailed policies and procedur~~redeem these tokens at the request o~~n the rights granted to holders of asset- referenced tokens, including any direct claim or redemption rights on the iss~~f any holder at all times at a price that is not lower than the face valuer of th~~ose asset-referenced tokens or on the reserve assets~~e holder’s claim on the issuer.

Amendment 541 #

Proposal for a regulation
Article 35 – paragraph 1

Amendment 542 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, Marco ZANNI

Proposal for a regulation
Article 35 – paragraph 1

1. Issuers of asset-referenced tokens shall grant holders redemption rights on the reserve assets and shall establish, maintain and implement clear and detailed policies and procedures ~~on the rights granted to holders of~~that outline the redemption of the asset- referenced tokens~~, including any direct claim or redemption rights on the issuer of those asset-referenced token~~ at market value. The redemption request shall be processed without undue delay and without undue costs for on the ~~reserve assets~~holder.

Amendment 543 #

Proposal for a regulation
Article 35 – paragraph 1

1. Issuers of asset-referenced tokens shall establish, maintain and implement clear and detailed policies and procedures on the rights granted to holders of asset- referenced tokens, including ~~any~~ direct claim or redemption rights on the issuer of those asset-referenced tokens or ~~on the reserve asset~~any direct claim or redemption rights on the reserve assets. Issuers of asset-referenced tokens shall grant the right of redemption of asset- referenced tokens, either immediately or, at the latest, within two working days.

Amendment 544 #

Proposal for a regulation
Article 35 – paragraph 1

Amendment 545 #

Proposal for a regulation
Article 35 – paragraph 1 a (new)

1a. Holders of asset-referenced tokens shall be provided with a permanent right of redemption on the issuer of such asset- referenced tokens. Any asset-referenced token that does not provide all holders with a permanent redemption right shall be prohibited. Upon request by the holder of asset-referenced tokens, the respective issuers shall redeem , at any moment and at market value, the monetary value of the asset-referenced tokens held to the holders of asset-referenced tokens, either in cash or by credit transfer. Such right of redemption shall be granted without prejudice to the application of restrictive measures imposed on the issuer under other Union or national legislation and in particular in accordance with anti- money laundering and anti-terrorist financing rules, which may require the issuer to take appropriate action to freeze the funds or take any specific measure linked to the prevention and investigation of crimes.

Amendment 546 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Aurore LALUCQ, Pedro MARQUES

Proposal for a regulation
Article 35 – paragraph 1 b (new)

1b. By way of derogation from paragraph 1a, issuers of asset-referenced tokens may, in accordance with the conditions set out in the crypto-asset key information sheet and only in exceptional cases temporarily suspend the redemption of its tokens, where such suspension is in the interests of the holders of the asset referenced tokens. In the event of a temporary suspension, the issuers of asset referenced tokens shall, without delay, communicate their decision to the ESMA. The ESMA may require the suspension of the redemption of tokens in the interest of the holders of the asset-referenced tokens or of the public.

Amendment 547 #

Proposal for a regulation
Article 35 – paragraph 2

2. Where holders of asset-referenced tokens are granted rights as referred to in paragraph 1, 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; (e) the fees applied by the issuers of asset- referenced tokens when the holders exercise those rights. The fees referred to in point (e) shall be proportionate and commensurate with the actual costs incurred by the issuers of asset-referenced tokens.deleted

Amendment 548 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

2. ~~Where holders~~By way of derogation from paragraph 1: (a) the issuer of an asset- referenced ~~tokens are granted rights as referred to in paragraph 1, i~~token may, in accordance with the applicable national law and subject to the conditions set out in the crypto-asset white paper, temporarily suspend the redemption of its tokens. In the event of a temporary suspension, the issuer shall, without delay, communicate its decision to its home Member State competent authorities. (b) the issuer’s home Member State may allow its competent authorities to require the suspension of the redemption of tokens in the interest of the tokenholders or of the public. The temporary suspension referred to in point (a) of the first subparagraph shall be provided for only in exceptional cases where circumstances so require and where suspension is justified having regard to the interests of the tokenholders. Issuers of asset-referenced tokens shall establish a policy setting out:

Amendment 549 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

2. ~~Where holders of asset-referenced tokens are granted rights as referred to in paragraph 1, issuers of asset-referenced tokens shall establish a policy setting out~~By way of derogation from paragraph 1:

Amendment 55 #

Proposal for a regulation
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, and their issuers shall be exempt from the application of the Regulation unless offered for investment purposes. Specific types of utility tokens, such as those used to ensure access to services, reward schemes to customers, mining reward tokens, and others, shall be exempt from regulation even if offered publicly as soon as this offering is not made for investment or payment purposes. 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’. The definition of the different crypto-assets regulated by this Regulation shall not allow for arbitrary decision as to the type of such crypto-assets. The crypto-assets that are the subject of this regulation shall be defined, first, based on objective technical criteria and second, on their intended use directly linked to such technical design and criteria. The in- practice use of the various concepts of crypt-assets would in most cases be difficult to predict in the emerging and rapidly innovating market. Furthermore, an objective approach shall be adopted when defining whether a token is a non- financial instrument and subject to this Regulation or a financial instrument, and therefore subject to other applicable Union legislation on the markets and financial instruments. Such legal certainty is crucial to attract investments and procure fast development while preserving consumer and investors’ protection. _________________ 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 550 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

2. ~~Where holders of asset-referenced tokens are granted rights as referred to in paragraph 1, i~~Issuers of asset-referenced tokens shall establish a policy setting out:

Amendment 551 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

2. ~~Where holders of asset-referenced tokens are granted rights as referred to in paragraph 1, i~~Issuers of asset-referenced tokens shall establish a policy setting out:

Amendment 552 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

2. ~~Where hold~~Issuers of asset-referenced token~~s are granted rights as~~ shall issue asset-referrenced to ~~in paragraph 1, issuers of asset-refe~~ken at par value and on the rence~~d tokens shall establish a policy setting out:~~ipt of funds within the meaning of Article 4(25) of Directive 2015/2366.

Amendment 553 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1– point a

~~(a) the conditions, including thresholds, periods and timeframes, for holders of asset-referenced tokens to exercise those rights;~~deleted

Amendment 554 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point a

(a) the ~~conditions, including thresholds, periods and timeframes, for holders of asset-referenced tokens to exercise those rights;~~issuer of an asset-referenced token may, in accordance with the applicable national law and subject to the conditions set out in the crypto-asset white paper, temporarily suspend the redemption of its tokens. In the event of a temporary suspension, the issuer shall, without delay, communicate its decision to its home Member State competent authorities.

Amendment 555 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point b

(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;deleted

Amendment 556 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1– point b

(b) the ~~mechanisms and procedur~~issuer’s home Member State may allow its competent authorities to ~~ensu~~require the ~~redempt~~suspension of the ~~asset- referenced~~redemption of tokens, in~~cluding in stressed market circumstances, in case of an orderly wind-down of the issuer of asset-~~ the interest of the token holders or of the public. The temporary suspension refer~~enc~~red to~~kens as referred to in Article 42, or in case of a cessation of activities by such issuer;~~ in point (a) of the first subparagraph shall be provided for only in exceptional cases where circumstances so require and where suspension is justified having regard to the interests of the token holders.

Amendment 557 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point c

~~(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;~~deleted

Amendment 558 #

Proposal for a regulation
Article 35 – paragraph 2 –subparagraph 1– point c

~~(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;~~deleted

Amendment 559 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point c

(c) ~~the valuation, or the principles of~~methodology and criteria to ensure a fair, reliable and transparent valuation, of the asset-referenced tokens and of the reserve assets when th~~ose rights are exercised by the holder of~~e issuer offers the right to redeem the asset- referenced tokens at market value, and its verification by an independent auditor;

Amendment 56 #

Proposal for a regulation
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 and~~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 ~~against~~with 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 560 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point d

~~(d) the settlement conditions when those rights are exercis~~deleted;

Amendment 561 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1– point d

~~(d) the settlement conditions when those rights are exercis~~deleted;

Amendment 562 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point e

~~(e) the fees applied by the issuers of asset-referenced tokens when the holders exercise those rights.~~deleted

Amendment 563 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point e

~~(e) the fees applied by the issuers of asset-referenced tokens when the holders exercise those rights.~~deleted

Amendment 564 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point e

~~(e) the fees applied by the issuers of asset-referenced tokens when the holders exercise those rights.~~deleted

Amendment 565 #

Proposal for a regulation
Article 35 – paragraph 2 –subparagraph 1 – point e

~~(e) the fees applied by the issuers of asset-referenced tokens when the holders exercise those rights.~~deleted

Amendment 566 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 2

~~The fees referred to in point (e) shall be proportionate and commensurate with the actual costs incurred by the issuers of asset-referenced tokens.~~deleted

Amendment 567 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 2

~~The fees referred to in point (e) shall be proportionate and commensurate with the actual costs incurred by the issuers of asset-referenced tokens.~~deleted

Amendment 568 #

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 2

~~The fees referred to in point (e) shall be proportionate and commensurate with the actual costs incurred by the issuers of asset-referenced tokens.~~deleted

Amendment 569 #

Proposal for a regulation
Article 35 – paragraph 2 a (new)

2a. 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, or in case of an orderly redemption of asset-referenced tokens; (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 57 #

Proposal for a regulation
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 and at par value against the currency referencing those tokens. E- money tokens may be linked to any global fiduciary currency classed as legal tender. 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. However, since different crypto- assets are associated with different risks and challenges, the stabilisation of crypto- assets to a single fiduciary currency allows for its safe use for both consumers and investors. _________________ 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 570 #

Proposal for a regulation
Article 35 – paragraph 3

3. Where issuers of asset-referenced tokens do not grant rights as referred to in paragraph 1 to all the holders of asset- referenced tokens, the detailed policies and procedures shall specify the natural or legal persons that are provided with such rights. The detailed policies and procedures shall also specify the conditions for exercising such rights and the obligations imposed on those persons. Issuers of asset-referenced tokens shall establish and maintain appropriate contractual arrangements with those natural or legal persons who are granted such rights. Those contractual arrangements shall precisely set out the roles, responsibilities, rights and obligations of the issuers of asset- referenced tokens and each of those natural or legal persons. A contractual arrangement with cross-jurisdictional implications shall provide for an unambiguous choice of law.deleted

Amendment 571 #

Proposal for a regulation
Article 35 – paragraph 3

Amendment 572 #

Proposal for a regulation
Article 35 – paragraph 3

Amendment 573 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Aurore LALUCQ, Pedro MARQUES

Proposal for a regulation
Article 35 – paragraph 3

Amendment 574 #

Proposal for a regulation
Article 35 – paragraph 3

Amendment 575 #

Proposal for a regulation
Article 35 – paragraph 3 – subparagraph 1

~~Where issu~~Holders of asset-referenced tokens do not grant rights as referred to in paragraph 1 to all the holders of asset- referenced tokens, the detailed policies and procedures shall specify the natural or legal persons that are provided with such rights. The detailed policies and procedures shall also specify the conditions for exercising such rights and the obligations imposed on those persons are entitled to claim redemption at any moment and at par value, of the monetary value of the ART held, either in cash or by credit transfer.

Amendment 576 #

Proposal for a regulation
Article 35 – paragraph 3 – subparagraph 1

Issuers of asset-referenced tokens shall establish and maintain appropriate contractual arrangements with those natural or legal persons who are granted such rights. Those contractual arrangements shall precisely set out the roles, responsibilities, rights and obligations of the issuers of asset- referenced tokens and each of those natural or legal persons. A contractual arrangement with cross-jurisdictional implications shall provide for an unambiguous choice of law.deleted

Amendment 577 #

Proposal for a regulation
Article 35 – paragraph 4

4. Issuers of asset-referenced tokens that do not grant rights as referred to in paragraph 1 to all the holders of such asset-referenced tokens shall put in place mechanisms to ensure the liquidity of the asset-referenced tokens. For that purpose, they shall establish and maintain written agreements with crypto-asset service providers authorised for the crypto-asset service referred to in Article 3(1) point (12). The issuer of asset-referenced tokens shall ensure that a sufficient number of crypto-asset service providers are required to post firm quotes at competitive prices on a regular and predictable basis. Where the market value of asset- referenced tokens varies significantly from the value of the reference assets or the reserve assets, the holders of asset- referenced tokens shall have the right to redeem the crypto-assets from the issuer of crypto-assets directly. In that case, any fee applied for such redemption shall be proportionate and commensurate with the actual costs incurred by the issuer of asset-referenced tokens. The issuer shall establish and maintain contractual arrangements to ensure that the proceeds of the reserve assets are paid to the holders of asset-referenced tokens, where the issuer decides to stop operating or where it has been placed under an orderly wind-down, or when its authorisation has been withdrawn.deleted

Amendment 578 #

Proposal for a regulation
Article 35 – paragraph 4

Amendment 579 #

Proposal for a regulation
Article 35 – paragraph 4

Amendment 58 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES, Aurore LALUCQ

Proposal for a regulation
Recital 10

(10) Despite their similarities, electronic money and crypto-assets referencing a single fiat currency ~~differ in some important aspect~~are two fundamentally different things. 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 and at par value against the 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 580 #

Proposal for a regulation
Article 35 – paragraph 4

Amendment 581 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 1

~~Issuers of asset-referenced tokens that do not grant rights as referred to in paragraph 1 to all the hold~~Redemption may not be subject to a fee. Issuers of ~~such~~ asset-referenced tokens shall p~~ut in place mechanisms to ensure the liquidity of the asset-referenced tokens. For that purpose, they shall establish and maintain written ag~~rominently state the conditions of redements with crypto-asset service providers authorised for the crypto-asset service referred to in Article 3(1) point (12). The issuer of asset-referenced tokens shall ensure that a sufficient number of crypto-asset service providers are required to post firm quotes at competitive prices on a regular and predictable basisption in the crypto-asset white paper as referred to in Article 46.

Amendment 582 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 1

Issuers of asset-referenced tokens that do not grant rights as referred to in paragraph 1 to all the holders of such asset-referenced tokens shall put in place mechanisms to ensure the liquidity of the asset-referenced tokens. For that purpose, they shall establish and maintain written agreements with crypto-asset service providers authorised for the crypto-asset service referred to in Article 3(1) point (12). The issuer of asset-referenced tokens shall ensure that a sufficient number of crypto- asset service providers are required to post firm quotes at competitive prices on a regular and predictable basis.

Amendment 583 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 2

Where the market value of asset- referenced tokens varies significantly from the value of the reference assets or the reserve assets, the holders of asset- referenced tokens shall have the right to redeem the crypto-assets from the issuer of crypto-assets directly. In that case, any fee applied for such redemption shall be proportionate and commensurate with the actual costs incurred by the issuer of asset-referenced tokens.deleted

Amendment 584 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 2

Amendment 585 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 2

~~Where~~If issuers offer holders the possibility to acquire and redeem the token by paying in funds the sum equivalent to the market value of the asset-s referenced ~~tokens varies significantly from the value of the reference assets~~by the token, the issuer shall establish policies and procedures to: (a) Ensure a fair and transparent valuation by an independent person orf the ~~reserve assets, the holders of~~assets referenced by the asset-s referenced tokens ~~shall have the right to redeem the crypto-assets from the issuer of crypto-assets directly. In that case, any fee applied for such redemption shall be proportionate and commensurate wi~~; (b) adequately manage increase or decreases of the reserve to avoid any adverse impacts on the market of the assets included in the reserve. If issuers, when selling an asset -reference token, accept a payment in funds denominated in a given official currency of a country, they shall always provide the option to redeem the t~~he actual costs incurr~~oken in funds denominated byin the ~~issuer of asset-referenced tokens~~same official currency.

Amendment 586 #

Proposal for a regulation
Article 35 – paragraph 4 – subparagraph 3

The issuer shall establish and maintain contractual arrangements to ensure that the proceeds of the reserve assets are paid to the holders of asset-referenced tokens, where the issuer decides to stop operating or where it has been placed under an orderly wind-down, or when its authorisation has been withdrawn.deleted

Amendment 587 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Aurore LALUCQ, Pedro MARQUES

Proposal for a regulation
Article 35 – paragraph 4 a (new)

4a. If issuers offer holders the possibility to acquire and redeem the token by paying in funds the sum equivalent to the market value of the assets referenced by the token, the issuer shall establish policies and procedures to: (a) Ensure a fair and transparent valuation by an independent person of the assets referenced by the assets referenced tokens; (b) adequately manage increase or decreases of the reserve to avoid any adverse impacts on the market of the assets included in the reserve. If issuers, when selling an asset -reference token, accept a payment in funds denominated in a given official currency of a country, they shall always provide the option to redeem the token in funds denominated in the same official currency.

Amendment 588 #

Proposal for a regulation
Article 35 – paragraph 5

5. The EBA shall, in close cooperation with ESMA, develop draft regulatory technical standards specifying: (a) the obligations imposed on the crypto- asset service providers ensuring the liquidity of asset-referenced tokens as set out in the first subparagraph of paragraph 4; (b) the variations of value triggering a direct right of redemption from the issuer of asset-referenced tokens as set out in the second subparagraph of paragraph 4, and the conditions for exercising such a right. EBA shall submit those draft regulatory technical standards to the Commission by ... [please insert 12 months after the date of entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.deleted

Amendment 589 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT, France JAMET

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – introductory part

5. TWhe ~~EBA shall, in close cooperation with ESMA, develop draft regulatory technical standards specifying~~re the issuer of an asset- referenced token does not fulfil legitimate redemption requests from holders of asset-referenced token within 30 days, the holder is entitled to claim redemption to any following third party entities that has been in contractual arrangements with issuers of asset-referenced tokens:

Amendment 59 #

Proposal for a regulation
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 and at par value against the currency referencing those tokens. E- money tokens should reference any global currency that is legal tender. 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. However, since the various crypto-assets pose different risks and challenges for national economies, partly because of unknown factors in determining their value, stabilising crypto-assets to a single legal currency provides more secure uses for consumers and investors. _________________ 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 590 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – introductory part

5. The EBA shall, in close cooperation with ESMA and the ESCB, develop draft regulatory technical standards specifying:

Amendment 591 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – introductory part

5. The EBSMA shall~~, in close cooperation with ESMA,~~ develop draft regulatory technical standards specifying:

Amendment 592 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – point a

(a) ~~the obligations imposed on the crypto-asset service providers ensuring the liquidity of~~entities ensuring the safeguarding of funds received by issuers of asset- referenced token in exchange for asset- referenced token~~s as set out in the first subparagraph of paragraph 4~~ in accordance with Article 7 of Directive2009/110/EC;

Amendment 593 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – point b

(b) the variations of value triggering a direct right of redemption from the issuer of asset-referenced tokens as set out in the second subparagraph of paragraph 4, and the conditions for exercising such a rightany natural or legal persons in charge of distributing e-money tokens on behalf of issuers of e-money tokens.

Amendment 594 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – point b a (new)

(ba) the conditions which need to be met by the issuer after the adoption of the temporary suspension of the redemption of tokens as referred to in paragraph 2(a), once the suspension has been decided.

Amendment 595 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – point b a (new)

(ba) the conditions which need to be met by the issuer after the adoption of the temporary suspension of the redemption of the asset referenced tokens, once the suspension has been decided.

Amendment 596 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 1 – point b a (new)

(ba) (c) the conditions which need to be met by the issuer after the adoption of the temporary suspension of the redemption of tokens as referred to in paragraph 2(a), once the suspension has been decided.

Amendment 597 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 2

~~EBA shall submit those draft regulatory technical standards to the Commission by ... [please insert 12 months after the date of entry into force of this Regulation].~~deleted

Amendment 598 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 2

EBSMA shall submit those draft regulatory technical standards to the Commission by ... [please insert 12 months after the date of entry into force of this Regulation].

Amendment 599 #

Proposal for a regulation
Article 35 – paragraph 5 – subparagraph 3

~~Power is~~ delegated ~~to the Commission to adopt the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.~~

Amendment 60 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Aurore LALUCQ, Pedro MARQUES

Proposal for a regulation
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 and at par value against the currency referencing those tokens. E- money tokens can be referenced to any global fiat currency that is a legal tender. 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. However, as different crypto- assets raise different risks and challenges, stabilising crypto-assets to a fiat currency allows for safer uses for both consumers and investors. _________________ 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 600 #

Proposal for a regulation
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 601 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 36

~~Issuers of asset-referenced tokens or crypto-asset serv~~Article ~~providers shall not provide for interest or any other benefit related to the length of time during which a holder of asset-referenced tokens holds asset-referenced assets.~~36 deleted Prohibition of interest

Amendment 602 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 37 – paragraph 1

1. Any natural or legal person or such persons acting in concert (the ‘proposed acquirer’), who intends to acquire, directly or indirectly, a qualifying holding in an issuer of asset-referenced tokens or to further increase, directly or indirectly, such a qualifying holding so that the proportion of the voting rights or of the capital held would reach or exceed ~~10 %,~~ 20 %, 30 % or 50 %, or so that the issuer of asset- referenced tokens would become its subsidiary (the ‘proposed acquisition’), shall notify the competent authority of that issuer thereof in writing, indicating the size of the intended holding and the information required by the regulatory technical standards adopted by the Commission in accordance with Article 38(4).

Amendment 603 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 37 – paragraph 2

2. Any natural or legal person who has taken a decision to dispose, directly or indirectly, of a qualifying holding in an issuer of asset-referenced tokens (the ‘proposed vendor’) shall first notify the competent authority in writing thereof, indicating the size of such holding. Such a person shall likewise notify the competent authority where it has taken a decision to reduce a qualifying holding so that the proportion of the voting rights or of the capital held would fall below ~~10 %,~~ 20 %, 30 % or 50 % or so that the issuer of asset- referenced tokens would cease to be that person’s subsidiary.

Amendment 604 #

Proposal for a regulation
Article 38 – paragraph 4 – subparagraph 1

~~The EBA, in close cooperation with~~ ESMA, shall develop draft regulatory technical standards to establish an exhaustive list of information that is necessary to carry out the assessment referred to in Article 37(4), first subparagraph and that shall be provided to the competent authorities at the time of the notification referred to in paragraph 37(1). The information required shall be relevant for a prudential assessment, be proportionate and be adapted to the nature of the persons and the intended acquisition referred to in Article 37(1).

Amendment 605 #

Proposal for a regulation
Article 38 – paragraph 4 – subparagraph 2

The EBSMA shall submit those draft regulatory technical standards to the Commission by [please insert 12 months after the entry into force of this Regulation].

Amendment 606 #

Proposal for a regulation
Article 39 – paragraph 1 – introductory part

1. ~~The EBA shall classify~~A issuer of asset- referenced tokens ~~as significant~~shall be designated asset- referenced tokens ~~on the basis of the following criteria, as specified in accordance with paragraph 6 and~~as significant asset-referenced tokens where at least t~~hree~~wo of the following criteria are met:

Amendment 607 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 1 – introductory part

1. ~~The EB~~ESMA 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 three of the following criteria are met:

Amendment 608 #

Proposal for a regulation
Article 39 – paragraph 1 – introductory part

Amendment 609 #

Proposal for a regulation
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 t~~hree~~wo of the following criteria are met:

Amendment 61 #

Proposal for a regulation
Recital 10 a (new)

(10a) With the aim to establish a future- proof regulation and in order to avoid circumvention, the definition of asset- referenced token (ART) should include reference to any other value or right.

Amendment 610 #

Proposal for a regulation
Article 39 – paragraph 1 – point a

(a) ~~the size of~~ the customer base of the promoters of the asset-referenced tokens, the shareholders of the issuer of asset- referenced tokens or of any of the third- party entities referred to in Article 30(5), point (h) is at least 5 million;

Amendment 611 #

Proposal for a regulation
Article 39 – paragraph 1 – point b

(b) the value of the asset-referenced tokens issued or, where applicable, their market capitalisation is at least EUR 5 billion in the last financial year;

Amendment 612 #

Proposal for a regulation
Article 39 – paragraph 1 – point c

(c) the number and value of transactions in those asset-referenced tokens is at least [xxx] transactions per day or EUR 300 million per day respectively;

Amendment 613 #

Proposal for a regulation
Article 39 – paragraph 1 – point d a (new)

(da) the issuer of the asset-referenced tokens is a provider of core platforms services designated as gatekeeper in accordance with Regulation (EU).../... (Digital Markets Act);

Amendment 614 #

Proposal for a regulation
Article 39 – paragraph 1 – point d b (new)

(db) the asset-referenced tokens are used in at least 5 Member States;

Amendment 615 #

Christophe HANSEN

Proposal for a regulation
Article 39 – paragraph 1 – point e

(e) the significance of the cross- border activities of the issuer of the asset- referenced tokens, including the number of Member States where the asset- referenced tokens are used, the use of the asset-referenced tokens for cross-border payments and remittances and the number of Member States where the third-party entities referred to in Article 30(5), point (h), are established;deleted

Amendment 616 #

Proposal for a regulation
Article 39 – paragraph 1 – point f

(f) the interconnectedness with the financial system and its potential for systemic risk.

Amendment 617 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 2

2. Competent authorities that authorised an issuer of asset-referenced tokens in accordance with Article 19 shall provide the EBSMA with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis.

Amendment 618 #

Proposal for a regulation
Article 39 – paragraph 2

2. Competent authorities that authorised an issuer of asset-referenced tokens in accordance with Article 19 shall provide ~~the EB~~ESMA with information on the criteria referred to in paragraph 1 and specified in accordance with paragraph 6 on at least a yearly basis.

Amendment 619 #

Proposal for a regulation
Article 39 – paragraph 2 a (new)

2a. Where an issuer of assets referenced tokens authorised in accordance with Article 19 meets at least two of the thresholds in paragraph 2, it shall notify ESMA without undue delay and at the latest 7 days after those thresholds are satisfied and provide it with the relevant information identified in paragraph.

Amendment 62 #

Proposal for a regulation
Recital 11

(11) Given the different risks and opportunities raised by crypto-assets, it is necessary to lay down rules for issuers ~~of crypto-assets that should be any legal person who offers to the public any type of crypto-assets or seeks the admission of such crypto-assets to a trading platform for~~and offerors of crypto-assets.

Amendment 620 #