2020/0265(COD) | [ParlTrack]

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

(c) ESMBA;

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

(36) To address the risks to financial stability of the wider financial system, issuers of asset-referenced tokens should be subject to capital requirements. Those capital requirements should be proportionate to the issuance size of the asset-referenced tokens and therefore calculated as a percentage of the reserve of assets that back the value of the asset- referenced tokens. Competent authorities should however be able to increase ~~or decrease~~ the amount of own fund requirements required on the basis of, inter alia, the evaluation of the risk-assessment mechanism of the issuer, the quality and volatility of the assets in the reserve backing the asset- referenced tokens or the aggregate value and number of asset- referenced tokens.

Amendment 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

(c) the transmission of necessary information by and to the EBSMA.

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

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] can operate for a period of 6 months after [please insert date of entry into application] before Articles 4 to 14 shall apply.

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

(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 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

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 the information specified in Article 54.2(d-r), Articles 57 and 58.

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 #

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 #

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

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

(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~~n official currency;

Amendment 208 #

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

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~~n official currency;

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

(c) the exchange of crypto-assets for f~~iat currency that is legal tender~~unds;

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 #

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

(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 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

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 295 #

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 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

(5) A dedicated and harmonised framework is therefore necessary at Union level to provide specific rules for crypto- assets and related activities and services and to clarify the applicable legal framework. Such harmonised framework should also cover services related to crypto-assets where these services are not yet covered by Union legislation on financial services. Such a framework should support innovation and fair competition, while ensuring a high level of consumer protection and market integrity in crypto-asset markets. A clear framework should enable crypto-asset service providers to scale up their business on a cross-border basis and should facilitate their access to banking services to run their activities smoothly. It should also ensure financial stability and address monetary policy risks that could arise from crypto- assets that aim at stabilising their price by referencing a currency, an asset or a basket of such. While increasing consumer protection, market integrity and financial stability through the regulation of offers to the public of crypto-assets or services related to such crypto-assets, a Union framework on markets in crypto-assets should ~~not regul~~ensure thate the underlying technology a~~nd should allow for the use of both permissionless and permission-based distributed ledger~~re climate friendly and in line with the EU green deal objectives.

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

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 within 14 days at the latest.

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

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 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

(c) the criteria for requiring higher own funds ~~or for allowing lower own funds~~, as set out in paragraph 3.

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

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

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

(9) A distinction should be made between three sub-categories of crypto- assets, which should be subject to more specific requirements. The first sub- category consists of a type of crypto-asset which is intended to provide digital access to a good or service, available on DLT, and that is only accepted by the issuer of that token (‘utility tokens’). Such ‘utility tokens’ have non-financial purposes related to the operation of a digital platform and digital services and should be considered as a specific type of crypto-assets. A second sub-category of crypto-assets are ‘asset-referenced tokens’. Such asset- referenced tokens aim at maintaining a stable value by referencing several currencies that are legal tender, one or several commodities~~, one or several crypto-assets,~~ or a basket of such assets. By stabilising their value, those asset- referenced tokens often aim at being used by their holders as a means of payment to buy goods and services and as a store of value. A third sub-category of crypto- assets are crypto-assets that are intended primarily as a means of payment aim at stabilising their value by referencing only one fiat currency. The function of such crypto-assets is very similar to the function of electronic money, as defined in in Article 2, point 2, of Directive 2009/110/EC of the European Parliament and of the Council35 . Like electronic money, such crypto-assets are electronic surrogates for coins and banknotes and are used for making payments. These crypto- assets are defined as ‘electronic money tokens’ or ‘e-money tokens’. _________________ 35Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7).

Amendment 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

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 assets.deleted

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

(9) A distinction should be made between three sub-categories of crypto- assets, which should be subject to more specific requirements. The first sub- category consists of a type of crypto-asset which is intended to provide digital access to a good or service, available on DLT, and that is only accepted by the issuer of that token (‘utility tokens’). Such ‘utility tokens’ have non-financial purposes related to the operation of a digital platform and digital services and should be considered as a specific type of crypto-assets. A second sub-category of crypto-assets are ‘asset-referenced tokens’. Such asset- referenced tokens aim at maintaining a stable value by referencing several currencies that are legal tender, one or several commodities, one or several crypto-assets, or a basket of such assets. By stabilising their value, those asset- referenced tokens often aim at being used by their holders as a means of ~~payment~~exchange 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~~exchange aim at stabilising their value by referencing only one fiat currency. The function of such crypto-assets is very similar to the function of electronic money, as defined in in Article 2, point 2, of Directive 2009/110/EC of the European Parliament and of the Council35. Like electronic money, such crypto-assets are electronic surrogates for coins and banknotes and are used for making payments. These crypto- assets are defined as ‘electronic money tokens’ or ‘e-money tokens’. _________________ 35Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009, p. 7).

Amendment 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

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 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

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~~ to ensure a direct claim or redemption rights on the issuer of those asset-referenced tokens or on the reserve assets.

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

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 572 #

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 573 #

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

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 574 #

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 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

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 579 #

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 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

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 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

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 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

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 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 #

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 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 3

3. Where the EBSMA is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1, as specified in accordance with paragraph 6, the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home Member State. The EBSMA shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 621 #

Proposal for a regulation
Article 39 – paragraph 3

3. Where ~~the EB~~ESMA is of the opinion that asset-referenced tokens meet the criteria referred to in paragraph 1, as specified in accordance with paragraph 6, ~~the EB~~ESMA shall prepare a draft decision to that effect and notify that draft decision to the issuers of those asset-referenced tokens and the competent authority of the issuer’s home Member State. ~~The EB~~ESMA shall give issuers of such asset-referenced tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. ~~The EB~~ESMA shall duly consider those observations and comments.

Amendment 622 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 4

4. The EBSMA shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.

Amendment 623 #

Proposal for a regulation
Article 39 – paragraph 4

4. ~~The EB~~ESMA shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.

Amendment 624 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 5 – subparagraph 1 – introductory part

5. The supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to the EBSMA one month after the notification of the decision referred to in paragraph 4.

Amendment 625 #

Proposal for a regulation
Article 39 – paragraph 5 – subparagraph 1 – introductory part

5. The supervisory responsibilities on issuers of significant asset-referenced tokens shall be transferred to ~~the EB~~ESMA one month after the notification of the decision referred to in paragraph 4.

Amendment 626 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 5 – subparagraph 2

The EBSMA and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences.

Amendment 627 #

Proposal for a regulation
Article 39 – paragraph 5 – subparagraph 2

~~The EB~~ESMA and the competent authority concerned shall cooperate in order to ensure the smooth transition of supervisory competences.

Amendment 628 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point i

i) the threshold for the customer base shall ~~not be lower than two~~be twenty million of natural or legal persons;

Amendment 629 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point ii

ii) the threshold for the value of the asset-referenced token issued or, where applicable, the market capitalisation of such an asset-referenced token shall ~~not be lower than~~be EUR 10 billion;

Amendment 63 #

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 crypto-assets. Issuer of crypto-assets may be a legal or natural person who issues any type of crypto-assets. Offeror of crypto-assets shall be 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. Sometimes the issuance and exchange of crypto-assets may be decentralized, and this shall be reflected and considered by the regulations. Such decentralized issuers shall not be required to organise in a single legal entity and shall not be subject to regulation until the offering of the crypto-assets to the public is centralized.

Amendment 630 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point ii

ii) the threshold for the value of the asset-referenced token issued or, where applicable, the market capitalisation of such an asset-referenced token shall not be lower than EUR 1.2 billion;

Amendment 631 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point iii

iii) the threshold for the number and value of transactions in those asset- referenced tokens shall ~~not be lower than 500 000~~be 5 million transactions per day or EUR 1~~00 m~~ billion per day respectively;

Amendment 632 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point iii

iii) the threshold for the number and value of transactions in those asset- referenced tokens shall not be lower than 5050 000 transactions per day or EUR 1010 million per day respectively;

Amendment 633 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point iv

iv) the threshold for the size of the reserve assets as referred to in point (d) shall ~~not be lower than~~be EUR 10 billion;

Amendment 634 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point iv

iv) the threshold for the size of the reserve assets as referred to in point (d) shall not be lower than EUR 1.2 billion;

Amendment 635 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point v

v) the threshold for the number of Member States where the asset-referenced tokens are used, including for cross- border payments and remittances, or where the third parties as referred to in Article 30(5), point (h), are established shall not be lower than seven;deleted

Amendment 636 #

Proposal for a regulation
Article 39 – paragraph 6 – point a – point v

v) the threshold for the number of Member States where the asset-referenced tokens are used, including for cross-border payments and remittances, or where the third parties as referred to in Article 30(5), point (h), are established shall ~~not be lower than se~~be fiven;

Amendment 637 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 6 – point a a (new)

(aa) The European Commission, consulting EBA and ESMA, shall review the relevant thresholds at least every two years and make a legislative proposal to adjust those thresholds if appropriate.

Amendment 638 #

Proposal for a regulation
Article 39 – paragraph 6 – point c

(c) the content and format of information provided by competent authorities to EBSMA under paragraph 2.

Amendment 639 #

Proposal for a regulation
Article 39 – paragraph 6 – point c

(c) the content and format of information provided by competent authorities to EBSMA under paragraph 2.

Amendment 64 #

Proposal for a regulation
Recital 11 a (new)

(11a) Notes that regulations confined to crypto-asset issuers alone do not resolve all the problems. Rules for holders of crypto-assets are vital, particularly in order to prevent market manipulation.

Amendment 640 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 39 – paragraph 6 – point d

(d) the procedure and timeframe for the decisions taken by the EBSMA under paragraphs 3 to 5.

Amendment 641 #

Proposal for a regulation
Article 39 – paragraph 6 – point d

(d) the procedure and timeframe for the decisions taken by ~~the EB~~ESMA under paragraphs 3 to 5.

Amendment 642 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 1 – subparagraph 1

1. Applicant issuers of asset- referenced tokens that apply for an authorisation as referred to in Article 16, may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. In that case, the competent authority shall immediately notify the request from the prospective issuer to the EBSMA.

Amendment 643 #

Proposal for a regulation
Article 40 – paragraph 1 – subparagraph 1

1. Applicant issuers of asset- referenced tokens that apply for an authorisation as referred to in Article 16, may indicate in their application for authorisation that they wish to classify their asset-referenced tokens as significant asset-referenced tokens. In that case, the competent authority shall immediately notify the request from the prospective issuer to ~~the EB~~ESMA.

Amendment 644 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 2 – subparagraph 1

2. Where, on the basis of the programme of operation, the EBSMA is of the opinion that asset-referenced tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home Member State.

Amendment 645 #

Proposal for a regulation
Article 40 – paragraph 2 – subparagraph 1

2. Where, on the basis of the programme of operation, ~~the EB~~ESMA is of the opinion that asset-referenced tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), ~~the EB~~ESMA shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the applicant issuer’s home Member State.

Amendment 646 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 2 – subparagraph 2

The EBSMA shall give competent authority of the applicant issuer’s home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 647 #

Proposal for a regulation
Article 40 – paragraph 2 – subparagraph 2

~~The EB~~ESMA shall give competent authority of the applicant issuer’s home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. ~~The EB~~ESMA shall duly consider those observations and comments.

Amendment 648 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 3 – subparagraph 1

3. Where, on the basis of the programme of operation, the EBSMA is of the opinion that asset-referenced tokens do not meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home Member State.

Amendment 649 #

Proposal for a regulation
Article 40 – paragraph 3 – subparagraph 1

3. Where, on the basis of the programme of operation, ~~the EB~~ESMA is of the opinion that asset-referenced tokens do not meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), ~~the EB~~ESMA shall prepare a draft decision to that effect and notify that draft decision to the applicant issuer and the competent authority of the applicant issuer’s home Member State.

Amendment 65 #

Proposal for a regulation
Recital 12

(12) It is necessary to lay down specific rules for entities that provide services related to crypto-assets. A first category of such services consist of ensuring the operation of a trading platform for crypto- assets, exchanging crypto-assets against fiat official currencies that are legal tender or other crypto-assets by dealing on own account, and the service, on behalf of third parties, of ensuring the custody and administration of crypto- assets or ensuring the control of means to access to such crypto-assets. A second category of such services are the placing of crypto-assets, the reception or transmission of orders for crypto-assets, the execution of orders for crypto-assets on behalf of third parties and the provision of advice on crypto-assets. Any person that provides such crypto-asset services on a professional basis should be considered as a ‘crypto-asset service provider’.

Amendment 650 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 3 – subparagraph 2

The EBSMA shall give the applicant issuer and the competent authority of its home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 651 #

Proposal for a regulation
Article 40 – paragraph 3 – subparagraph 2

~~The EB~~ESMA shall give the applicant issuer and the competent authority of its home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. ~~The EB~~ESMA shall duly consider those observations and comments.

Amendment 652 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 4

4. The EBSMA shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.

Amendment 653 #

Proposal for a regulation
Article 40 – paragraph 4

4. ~~The EB~~ESMA shall take its final decision on whether an asset-referenced token is a significant asset-referenced token within three months after the notification referred to in paragraph 1 and immediately notify the issuers of such asset-referenced tokens and their competent authorities thereof.

Amendment 654 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 40 – paragraph 5

5. Where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4, the supervisory responsibilities shall be transferred to the EBSMA on the date of the decision by which the competent authority grants the authorisation referred to in Article 19(1).

Amendment 655 #

Proposal for a regulation
Article 40 – paragraph 5

5. Where asset-referenced tokens have been classified as significant in accordance with a decision referred to in paragraph 4, the supervisory responsibilities shall be transferred to ~~the EB~~ESMA on the date of the decision by which the competent authority grants the authorisation referred to in Article 19(1).

Amendment 656 #

Proposal for a regulation
Article 40 a (new)

Article 40a Quasi e-money tokens Where the ESMA considers that a significant asset-referenced token is being widely used for payments in the Union, it shall request an opinion to the EBA. Where EBA concludes, after consulting the ECB and the relevant central banks of Member States whose currency is not the euro, that the significant asset- referenced token has become widely used as a means of exchange, the asset- referenced token shall be re-classified as quasi-e-money token and the supervisory responsibilities shall be transferred to the EBA. The EBA shall require the issuer of significant quasi-e-money tokens to comply with the same requirements regarding the issuance and redeemability provided for issuers of e-money tokens in accordance with Article 4.4, without prejudice to the application of higher fines and sanctions for significant asset referenced tokens.

Amendment 657 #

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

Proposal for a regulation
Article 41 – paragraph 3

3. Issuers of significant asset- referenced tokens shall assess and monitor the liquidity needs to meet redemption requests or the exercise of rights, as referred to in Article 34, by holders of asset-referenced tokens. ~~For that purpose, i~~Issuers of significant asset-referenced tokens shall ~~establish, maintain and implement a liquidity management policy and procedures. That policy and those procedures shall ensure that the reserve assets have a resili~~also conduct liquidity stress testing, on a regular basis, and depending on the outcome of such tests, the EBA may decide to strengthent liquidity ~~profile that enable~~risk requirements. Where an issuer of significant asset- referenced tokens ~~to continue operating normally, including under liquidity stressed scenarios.~~offers two or more categories of crypto-asset tokens and/or provides crypto asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner.’

Amendment 658 #

Proposal for a regulation
Article 41 – paragraph 3

3. Issuers of significant asset- referenced tokens shall assess and monitor the liquidity needs to meet redemption requests or the exercise of rights, as referred to in Article 34, by holders of asset-referenced tokens. For that purpose, issuers of significant asset-referenced tokens shall establish, maintain and implement a liquidity management policy and procedures. That policy and those procedures shall ensure that the reserve assets have a resilient liquidity profile that enable issuer of significant asset- referenced tokens to continue operating normally, including under liquidity stressed scenarios. Issuers of significant asset-referenced tokens shall also conduct liquidity stress testing, on a regular basis, and depending on the outcome of such tests, the EBA may decide to strengthen liquidity risk requirements. Where an issuer of significant asset-referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner.’ .

Amendment 659 #

Proposal for a regulation
Article 41 – paragraph 4

4. The ~~percentage referred to in Article 31(1), point (b), shall be set at 3% of the average amount of the reserve assets for issuers of significant asset- referenced token~~minimum own funds requirements referred to in Article 31(1) shall be multiplied with a factor of 1.5. The percentage of the reserve assets referred to in Article 31(1), point (b), shall be calculated over a period of 12 months.

Amendment 66 #

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

Proposal for a regulation
Recital 13

(13) To ensure that all offers to the public of crypto-assets, other than asset- referenced tokens or e-money tokens, in the Union, or all the admissions of such crypto-assets to trading on a trading platform for crypto-assets are properly monitored and supervised by competent authorities, all issuers of crypto-assets should be legal entities whose corporate structure should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries.

Amendment 660 #

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

Proposal for a regulation
Article 41 – paragraph 4

4. The percentage referred to in Article 31(1), point (b), shall be set at 3% of the average amount of the reserve assets for issuers of significant asset-referenced tokens. In addition, issuers of significant asset-referenced tokens shall conduct, on a regular basis, stress testing that shall take into account severe but plausible financial (such as interest rate shocks) stress scenarios and non-financial (such as operational risk) stress scenarios. Where an issuer of significant asset referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto-asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner. Based on the outcome of such stress tests, the EBA where relevant, may impose additional own funds requirements on top of the 3% requirement. Moreover, issuers of significant asset-referenced tokens shall also conduct liquidity stress testing, on a regular basis, and depending on the outcome of such tests, the EBA may decide to strengthen liquidity risk requirements.

Amendment 661 #

Proposal for a regulation
Article 41 – paragraph 4

4. The percentage referred to in Article 31(1), point (b), shall be set at 3 % of the average amount of the reserve assets for issuers of significant asset-referenced tokens. In addition, issuers of significant asset-referenced tokens shall conduct, on a regular basis, stress testing that shall take into account severe but plausible financial (such as interest rate shocks) stress scenarios and non-financial(such as operational risk) stress scenarios. Where an issuer of significant asset referenced tokens offers two or more categories of crypto-asset tokens and/or provides crypto-asset services, these stress tests shall cover all of these activities in a comprehensive and holistic manner. Based on the outcome of such stress tests, the EBA where relevant, may impose additional own funds requirements on top of the 3%requirement.

Amendment 662 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 41 – paragraph 6 – subparagraph 1 – introductory part

6. ~~The EB~~ESMA, in close cooperation with ~~ESM~~the EBA, shall develop draft regulatory technical standards specifying:

Amendment 663 #

Proposal for a regulation
Article 41 – paragraph 6 – subparagraph 1 – introductory part

6. The ~~EBA, in close cooperation with~~ ESMA, shall develop draft regulatory technical standards specifying:

Amendment 664 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 41 – paragraph 6 – 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 665 #

Proposal for a regulation
Article 41 – paragraph 6 – subparagraph 2

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

Amendment 666 #

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

Proposal for a regulation
Article 41 – paragraph 6 a (new)

6a. The EBA, in close cooperation with ESMA, shall issue guidelines with a view to establishing the common reference parameters of the stress test scenarios to be included in the stress tests in accordance with paragraphs 3 and 4. The guidelines should be updated periodically taking into account the latest market developments.’

Amendment 667 #

Proposal for a regulation
Title IV – Chapter 1 – title

1 Requirements to be fulfilled by all ~~issue~~offerors of electronic money tokens

Amendment 668 #

Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1 – introductory part

1. No electronic money tokens shall be offered to the public in the Union or shall be admitted to trading on a trading platform for crypto-assets unless the ~~issuer~~offerors of such electronic money tokens:

Amendment 669 #

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

Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1 – point c a (new)

(ca) does not have a parent undertaking, or a subsidiary, that is established in: i)a third country which is listed as a high- risk third country that has strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council; ii)a third country that is listed in Annex I or annex II of the EU list of non- cooperative jurisdictions for tax purposes; iii) third jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits.

Amendment 67 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 13

(13) To ensure that all offers to the public of crypto-assets, other than asset- referenced tokens or e-money tokens, in the Union, or all the admissions of such crypto-assets to trading on a trading platform for crypto-assets are properly monitored and supervised by competent authorities, all issuers of crypto-assets should be legal entities. The European Commission needs to address crypto- currency mining and should monitor crypto-currency mining activities in the EU while initiating information campaigns for citizens with regard to miners that use computer resources of users without their consent.

Amendment 670 #

Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1 – point c b (new)

(cb) issues electronic money tokens which are generated through ‘proof of stake’ mechanisms.

Amendment 671 #

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

Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 2

For the purpose of point (a), an ‘electronic money institution’ as defined in Article 2(1) of Directive 2009/110/EC shall be authorised to issue ‘e-money tokens’ and e-money tokens shall be deemed to be ‘electronic money’ as defined in Article 2(2) of Directive 2009/110/EC.deleted

Amendment 672 #

Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 2 a (new)

An e-money token offered to the public in the Union or admitted to trading on a trading platform of crypto-assets may reference a fiat currency of legal tender other than a currency of the Union.

Amendment 673 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 43 – paragraph 1 a (new)

1a. The decision on whether to authorise e-money tokens linked to the euro should be made by the ECB, while the decision on whether to authorise e- money tokens linked to another EU currency should be made by the central bank of the currency in question. The ECB or the central bank of the currency in question should refuse such authorisation if it cannot exclude a threat to financial stability or monetary sovereignty in the euro area or in the area of the currency in question because of the business model, anticipated market volume or other detrimental circumstances of the proposed e-money token. The ECB or the central bank of the currency in question should adopt its decision within three months of receiving a complete application for authorisation and inform the applicant issuer of that decision within five working days of its adoption.

Amendment 674 #

Proposal for a regulation
Article 43 – paragraph 2

2. Paragraph 1 shall not apply to: (a) e-money tokens that are marketed, distributed and held by qualified investors and can only be held by qualified investors; (b) if the average outstanding amount of e-money tokens does not exceed EUR 5 000 000, or the corresponding equivalent in another currency, over a period of 12 months, calculated at the end of each calendar day. For the purpose of point (b), where the Member State has set a threshold lower than EUR 5 000 000 in accordance with Article 9 (1)(a) of Directive 2009/110/EC, such a threshold shall apply. In the case referred to in points (a) and (b), the issuers of electronic money tokens shall produce a crypto-asset white paper and notify such crypto-asset white paper to the competent authority in accordance with Article 46.deleted

Amendment 675 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 43 – paragraph 2

2. Paragraph 1 shall not apply to: (a) e-money tokens that are marketed, distributed and held by qualified investors and can only be held by qualified investors; (b) if the average outstanding amount of e-money tokens does not exceed EUR 5 000 000, or the corresponding equivalent in another currency, over a period of 12 months, calculated at the end of each calendar day. For the purpose of point (b), where the Member State has set a threshold lower than EUR 5 000 000 in accordance with Article 9 (1)(a) of Directive 2009/110/EC, such a threshold shall apply. In the case referred to in points (a) and (b), the issuers of electronic money tokens shall produce a crypto-asset white paper and notify such crypto-asset white paper to the competent authority in accordance with Article 46.deleted

Amendment 676 #

Proposal for a regulation
Article 43 – paragraph 2 – subparagraph 1 – point b

(b) if the average outstanding amount of e-money tokens does not exceed EUR 5 000 000, or the corresponding equivalent in another fiat currency, over a period of 12 months, calculated at the end of each calendar day.

Amendment 677 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 43 – paragraph 2 – subparagraph 2

~~For the purpose of point (b), where the Member State has set a threshold lower than EUR 5 000 000 in accordance with Article 9 (1)(a) of Directive 2009/110/EC, such a threshold shall apply.~~deleted

Amendment 678 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 43 – paragraph 2 a (new)

2a. E-money tokens offered to the public in Member States or admitted to trading on a trading platform for crypto- assets may reference any global currency that is legal tender.

Amendment 679 #

Proposal for a regulation
Article 43 – paragraph 2 a (new)

2a. An e-money token offered to the communities in the Union or admitted to trading on a trading platform may reference any global currency that is legal tender.

Amendment 68 #

Proposal for a regulation
Recital 13

(13) To ensure that all offers to the public of crypto-assets, other than asset- referenced tokens or e-money tokens, in the Union, or all the admissions of such crypto-assets to trading on a trading platform for crypto-assets are properly monitored and supervised by competent authorities, all issuers of crypto-assets should be legal entities. To promote and not hinder decentralised issuance of crypto-assets, this requirement may not and shall not apply to decentralised issuers of crypto-assets until and unless the issuance of such crypto-assets is centralised.

Amendment 680 #

Proposal for a regulation
Article 43 a (new)

Article 43a By [please insert the date 18 months after date of entry into application], EBA shall, after consulting all relevant stakeholders and reflecting all interests involved, issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 concerning the prudential treatment of payment ART issued by credit institutions or electronic money institutions.

Amendment 681 #

Proposal for a regulation
Article 44 – title

~~Issuance~~Offering and redeemability of electronic money tokens

Amendment 682 #

Proposal for a regulation
Article 44 – paragraph 1

1. By derogation of Article 11 of Directive 2009/110/EC, only the following requirements regarding the ~~issuance~~offering and redeemability of e-money tokens shall apply to issuers of e-money tokens.

Amendment 683 #

Proposal for a regulation
Article 44 – paragraph 1

1. By derogation of Article 11 of Directive 2009/110/EC, ~~only~~ the following requirements regarding the issuance and redeemability of e-money tokens shall apply to issuers of e-money tokens.

Amendment 684 #

Proposal for a regulation
Article 44 – paragraph 2

2. Holders of e-money tokens shall be provided with a claim on the issuer or offeror of such e-money tokens. Any e- money token that does not provide all holders with a claim shall be prohibited. The white paper clearly establishes the party against which the e-money token holders may file a claim.

Amendment 685 #

Proposal for a regulation
Article 44 – paragraph 2

2. Holders of e-money tokens ~~shall be provided with a claim on the iss~~are entitled to claim redemption at any moment and at par valuer, of ~~such e-money tokens. Any e-money token that does not provide all holders with a claim shall be prohibited~~the monetary value of thee-money tokens held, either in cash or by credit transfer.

Amendment 686 #

Proposal for a regulation
Article 44 – paragraph 3

3. ~~Issue~~Offerors of such e-money tokens shall ~~issue~~offer e-money tokens at par value and on the receipt of funds within the meaning of Article 4(25) of Directive 2015/2366.

Amendment 687 #

Proposal for a regulation
Article 44 – paragraph 4

4. Upon request by the holder of e- money tokens, the respective issuer must redeem, at any moment and at par value, the monetary value of the e-money tokens held to the holders of e-money tokens, either in cash or by credit transfer.deleted

Amendment 688 #

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

Proposal for a regulation
Article 44 – paragraph 4

4. Upon request by the holder of e- money tokens, the respective ~~issuer~~offeror or issuer, as applicable, must redeem, at any moment and at par value, the monetary value of the e-money tokens held to the holders of e-money tokens, either in cash or by credit transfer.

Amendment 689 #

Proposal for a regulation
Article 44 – paragraph 5

5. Issuers of e-money tokens shall prominently state the conditions of redemption, including any fees relating thereto, in the crypto-asset white paper as referred to in Article 46. In any event, redemption shall be immediate or within no more than two working days.

Amendment 69 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Recital 13 a (new)

(13a) The European Union and member states should invest more in providing fiscal education and information to EU citizens about crypto-assets and crypto- currency. Specific communication campaigns underlining the risks of crypto-currency should also be put in place. The crypto-assets managers or sellers have the responsibility in adequately informing their customers and EU citizens about the risks of crypto- currency and crypto-assets.

Amendment 690 #

Proposal for a regulation
Article 44 – paragraph 5

5. Issuers of e-money tokens shall prominently state the conditions of redemption, including any fees relating thereto, in the crypto-asset white paper as referred to in Article 46. Issuers will also refrain from issuing crypto-assets on a protocol that uses a proof-of-work mechanism.

Amendment 691 #

Proposal for a regulation
Article 44 – paragraph 5

5. Redemption may not be subject to a fee. Issuers of e-money tokens shall prominently state the conditions of redemption~~, including any fees relating thereto,~~ in the crypto-asset white paper as referred to in Article 46.

Amendment 692 #

Proposal for a regulation
Article 44 – paragraph 5

5. ~~Issue~~Offerors of e-money tokens shall prominently state the conditions of redemption, including any fees relating thereto, in the crypto-asset white paper as referred to in Article 46.

Amendment 693 #

Proposal for a regulation
Article 44 – paragraph 6

~~6. Redemption may be subject to a fee only if stated in the crypto-asset white paper. Any such fee shall be proportionate and commensurate with the actual costs incurred by issuers of e-money tokens.~~deleted

Amendment 694 #

Proposal for a regulation
Article 44 – paragraph 6

~~6. Redemption may be subject to a fee only if stated in the crypto-asset white paper. Any such fee shall be proportionate and commensurate with the actual costs incurred by issuers of e-money tokens.~~deleted

Amendment 695 #

Proposal for a regulation
Article 44 – paragraph 6

6. Redemption may be subject to a fee only. if stated in the crypto-asset white paper and only in any of the following cases: (a) where redemption is requested before the termination of the contract; (b) where the contract provides for a termination date and the electronic money holder terminates the contract before that date; or (c) where redemption is requested more than one year after the date of termination of the contract. Any such fee shall be proportionate and commensurate with the actual costs incurred by issuers of e-money tokens.

Amendment 696 #

Proposal for a regulation
Article 44 – paragraph 6

6. Redemption may be subject to a fee only if stated in the crypto-asset white paper~~. Any such fee shall be propor~~ and only in any of the following cases: (a) where redemption is requested before the termination of the contract; (b) where the contract provides for a termination date and ~~commensurate with the actual costs incurred by issuers of e-money tokens~~the electronic money holder terminates the contract before that date; or (c) where redemption is requested more than one year after the date of termination of the contract.

Amendment 697 #

Proposal for a regulation
Article 44 – paragraph 7 – introductory part

7. Where the issuers of an e-money tokens does not fulfil legitimate redemption requests from holders of e-money tokens within ~~the time period specified in the crypto-asset white paper and which shall not exceed 30 days, the obligation set out in paragraph 3 applie~~30days, the holder is entitled to claim redemption of funds to any following third party entities that has been in contractual arrangements with issuers of e- money tokens:

Amendment 698 #

Proposal for a regulation
Article 44 – paragraph 7 – introductory part

7. Where issuers or offerors of e- money tokens does not fulfil legitimate redemption requests from holders of e- money tokens within the time period specified in the crypto-asset white paper and which shall not exceed 30 days, the obligation set out in paragraph 3 applies to any following third party entities that has been in contractual arrangements with ~~issue~~offerors of e- money tokens:

Amendment 699 #

Proposal for a regulation
Article 44 – paragraph 7 – point a

(a) entities ensuring the safeguarding of funds received by ~~issue~~offerors of e-money tokens in exchange for e-money tokens in accordance with Article 7 of Directive 2009/110/EC;

Amendment 70 #

Proposal for a regulation
Recital 13 a (new)

(13a) Some types of crypto-assets are not issued by legal entities, but are managed by decentralised autonomous organisations (DAOs). Provided that such crypto assets are compatible with the requirements of this regulation and do not pose a risk for financial stability, market integrity or investor protection, competent authorities may decide to admit such crypto-assets for trading on a European trading platform for crypto-assets.

Amendment 700 #

Proposal for a regulation
Article 44 – paragraph 7 – point b

(b) any natural or legal persons in charge of distributing e-money tokens on behalf of issuers or offerors of e-money tokens.

Amendment 701 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 44 – paragraph 7 – point b a (new)

(ba) issuers of e-money tokens, if different from the offeror;

Amendment 702 #

Proposal for a regulation
Article 45

By derogation to Article 12 of Directive 2009/110/EC, no issuer of e-money tokens or crypto-asset service providers shall grant interest or any other benefit related to the length of time during which a holder of e-money tokens holds such e- money tokens.Article 45 deleted Prohibition of interests

Amendment 703 #

Proposal for a regulation
Article 46 – title

46 Content and form of the crypto- asset ~~white paper~~key information sheet for electronic money tokens

Amendment 704 #

Proposal for a regulation
Article 46 – paragraph 1

1. Before offering e-money tokens to the public in the EU or seeking an admission of such e-money tokens to trading on a trading platform, the issuer of e-money tokens shall ~~publish~~obtain approval for its a crypto- asset ~~white paper~~key information sheet and, once approved, it shall publish it on its website.

Amendment 705 #

Proposal for a regulation
Article 46 – paragraph 1

1. Before the offer~~ing~~or offers e-money tokens to the public in the EU or seek~~ing~~s an admission of such e-money tokens to trading on a trading platform, the issuer of e-money tokens shall publish a crypto-asset white paper on its website.

Amendment 706 #

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

Proposal for a regulation
Article 46 – paragraph 2 – point a

(a) a description of the issuer(s) of e- money tokens, when known;

Amendment 707 #

Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Victor NEGRESCU

Proposal for a regulation
Article 46 – paragraph 2 – point a a (new)

(aa) a description of the offeror of e- money tokens;

Amendment 708 #

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

Proposal for a regulation
Article 46 – paragraph 2 – point a a (new)

(aa) a description of the offeror of e- money tokens;

Amendment 709 #

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

Proposal for a regulation
Article 46 – paragraph 2 – point b

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

Amendment 71 #

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

Proposal for a regulation
Recital 14

(14) In order to ensure consumer protection, prospective purchasers of crypto-assets should be informed about the characteristics, functions and risks of crypto-assets they intend to purchase. When making a public offer of crypto- assets in the Union or when seeking admission of crypto-assets to trading on a trading platform for crypto-assets, issuers of crypto-assets should produce, notify to their competent authority and publish an information document (‘a crypto-asset white paper’) containing mandatory disclosures. Such crypto-asset white paper should contain general information on the issuer and offeror, when different, on the project to be carried out with the capital raised, on the public offer of crypto-assets or on their admission to trading on a trading platform for crypto- assets, on the rights and obligations attached to the crypto-assets, on the underlying technology used for such assets and on the related risks. To ensure fair and non- discriminatory treatment of holders of crypto-assets, the information in the crypto-asset white paper, and where applicable in any marketing communications related to the public offer, shall be fair, clear and not misleading.

Amendment 710 #

Proposal for a regulation
Article 46 – paragraph 2 – point e

(e) the information on the underlying technology and standards met by the issuer of e-money tokens allowing for the holding, storing and transfer of such e- money tokens; as well as the guarantee that these tokens are not generated by a proof of work mechanism.

Amendment 711 #

Proposal for a regulation
Article 46 – paragraph 2 – point e a (new)

(ea) the information regarding the governance of the issuance of e-money tokens as decentralised crypto-assets, when applicable;

Amendment 712 #

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

Proposal for a regulation
Article 46 – paragraph 2 – point f

(f) the risks relating to the issuer of(s) of the e- money ~~issuer~~tokens, the offeror of the e- money tokens, the e-money tokens and the implementation of the project, including the technology;

Amendment 713 #

Proposal for a regulation
Article 46 – paragraph 2 – point f

(f) the risks relating to the issuer of e- money issuer, offerors of e-money, the e- money tokens and the implementation of the project, including the technology;

Amendment 714 #

Proposal for a regulation
Article 46 – paragraph 2 – point f a (new)

(fa) a declaration by the issuer 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 715 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 46 – paragraph 2 – point g a (new)

(ga) information on the validation mechanism or consensus process, namely how the e-money token is generated through “proof of stake” mechanisms

Amendment 716 #

Eero HEINÄLUOMA, Paul TANG, Victor NEGRESCU, Pedro MARQUES

Proposal for a regulation
Article 46 – paragraph 2 – point g b (new)

(gb) description of sustainability indicators in relation to adverse impacts on the climate and other environmental, social and governance-related adverse impacts related to the issuance of the e- money token

Amendment 717 #

Proposal for a regulation
Article 46 – paragraph 4

4. Every crypto-asset white paper shall also include a statement from the management body of the ~~issue~~offeror of e- money confirming that the crypto-asset white paper complies with the requirements of this Title and specifying that, to their best knowledge, the information presented in the crypto-asset white paper is correct and that there is no significant omission.

Amendment 718 #

Proposal for a regulation
Article 46 – paragraph 5 – point b

(b) the conditions of redemption, including any fees relating thereto and the parties against which redemption rights may be exercised. .

Amendment 719 #

Proposal for a regulation
Article 46 – paragraph 7

7. The crypto-asset white paper shall be drawn up in at least one of the official languages of the home Member State or in ~~a language customary in the sphere of international finance~~English.

Amendment 72 #

Proposal for a regulation
Recital 14

(14) In order to ensure consumer protection, prospective purchasers of crypto-assets should be informed about the characteristics, functions and risks of crypto-assets they intend to purchase. When making a public offer of crypto- assets in the Union or when seeking admission of crypto-assets to trading on a trading platform for crypto-assets, issuers of crypto-assets should produce, notify to their competent authority and publish an information document (‘a crypto-asset white paper’) containing mandatory disclosures. Such crypto-asset white paper should contain general information on the issuer, on the project to be carried out with the capital raised, on the public offer of crypto-assets or on their admission to trading on a trading platform for crypto- assets, on the rights and obligations attached to the crypto-assets, on the underlying technology used for such assets and on the related risks. To ensure fair and non-discriminatory treatment of holders of crypto-assets, the information in the crypto-asset white paper, and where applicable in any marketing communications related to the public offer, shall be fair, clear and not misleading. This white paper should be approved by the competent authority.

Amendment 720 #

Proposal for a regulation
Article 46 – paragraph 7

7. The crypto-asset white paper shall be drawn up in at least one of the official languages of the home Member State orand in a language customary in the sphere of international finance.

Amendment 721 #

Proposal for a regulation
Article 46 – paragraph 9 – subparagraph 1

9. The issuer of e-money tokens shall notify its draft crypto-asset ~~white paper~~key information sheet , and where applicable their marketing communications, to the relevant competent authority as referred to in Article 3(1) point (24)(b) ~~at least 20 working days before its date of its publication~~. The relevant authority shall notify the issuer of its decision regarding the approval within 20 working days of the submission of the draft key information sheet.

Amendment 722 #

Proposal for a regulation
Article 46 – paragraph 9 – subparagraph 1

9. The ~~issue~~offeror of e-money tokens shall notify its draft crypto-asset white paper, and where applicable their marketing communications, to the relevant competent authority as referred to in Article 3(1) point (24)(b) at least 20 working days before its date of its publication.

Amendment 723 #

Proposal for a regulation
Article 47 – paragraph 1 – subparagraph 1

1. WThe~~re an~~ issuer of e-money tokens or its management body ~~has infringed Article 46, by~~is solely responsible for the information provid~~ing~~ed in its crypto- asset ~~white paper~~key information sheet or in a in a modified crypto-asset ~~white paper~~key information 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 by providing information which is misleading, ain infringement of Article 46. A holder of such e-money tokens may claim damages from that issuer of e-money 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 724 #

Proposal for a regulation
Article 47 – paragraph 1 – subparagraph 1

1. Where an ~~issue~~offeror of e-money tokens or its management body has infringed Article 46, 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 such e-money tokens may claim damages from that ~~issue~~offeror of e-money tokens or its management body for damage caused to her or him due to that infringement.

Amendment 725 #

Any contractual exclusion of civil liability contrary to this paragraph shall be deprived of any legal effect.

Amendment 726 #

Proposal for a regulation
Article 47 – paragraph 2

2. It shall be the responsibility of the holders of e-money tokens to present evidence indicating that the ~~issue~~offeror of e- money tokens has infringed Article 46 and that such an infringement had an impact on his or her decision to buy, sell or exchange the said e-money tokens.

Amendment 727 #

Proposal for a regulation
Article 48 – paragraph 2

2. The marketing communications shall contain a clear and unambiguous statement that all the holders of the e- money tokens have a redemption right at any time and at par value on the ~~issue~~offeror.

Amendment 728 #

Proposal for a regulation
Article 49

Funds received by issuers of e-money tokens in exchange of e-money tokens and that are invested in secure, low-risk assets in accordance with Article 7(2) of Directive 2009/110/EC shall be invested in ~~assets~~highly liquid financial instruments with minimal market and credit risks in accordance with Article 34(4) of this Regulation, instead of Article 7(2) of Directive2009/110/EC, denominated in the same currency as the one referenced by the e-money token.’

Amendment 729 #

Proposal for a regulation
Article 49

Funds received by issuers or offerors of e- money tokens in exchange of e-money tokens and that are invested in secure, low- risk assets in accordance with Article 7(2) of Directive 2009/110/EC shall be invested in assets denominated in the same currency as the one referenced by the e-money token.

Amendment 73 #

Proposal for a regulation
Recital 15

(15) In order to ensure a proportionate approach, the requirements to draw up and publish a crypto-asset white paper should not apply to offers of crypto-assets, other than asset-referenced tokens or e- money tokens, that are offered for free, or offers of crypto-assets that are exclusively offered to qualified investors as defined in Article 2, point (e), of Regulation (EU) 2017/1129 of the European Parliament and of the Council37 and can be exclusively held by such qualified investors, or that, per Member State, are made to a small number of persons, or that are unique and not fungible with other crypto-assets. _________________ 37Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).deleted

Amendment 730 #

Proposal for a regulation
Article 50 – paragraph 1

1. The EBSMA shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), and where at least three of those criteria are met.

Amendment 731 #

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

Proposal for a regulation
Article 50 – paragraph 1

1. The EBA shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), and where at least three of those criteria are met, and where the cross-border criterion for a given e-money token has been met (it is used in more than one Member State).

Amendment 732 #

Proposal for a regulation
Article 50 – paragraph 1

1. The EBA after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro shall classify e-money tokens as significant e-money tokens on the basis of the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), and where at least t~~hree~~wo of those criteria are met.

Amendment 733 #

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

Proposal for a regulation
Article 50 – paragraph 2

2. Competent authorities of the issuer’s home Member State shall provide the EBA, the ECB and the relevant central banks of Member States whose currency is not the euro with information on the criteria referred to in Article 39(1) ~~of this Article~~ and specified in accordance with Article 39(6) on at least a yearly basis.

Amendment 734 #

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

Proposal for a regulation
Article 50 – paragraph 2

2. Competent authorities of the issuer’ or offeror's home Member State shall provide the EBA with information on the criteria referred to in Article 39(1) of this Article and specified in accordance with Article 39(6) on at least a yearly basis.

Amendment 735 #

Proposal for a regulation
Article 50 – paragraph 2

2. Competent authorities of the ~~issue~~offeror’s home Member State shall provide the EBA with information on the criteria referred to in Article 39(1) of this Article and specified in accordance with Article 39(6) on at least a yearly basis.

Amendment 736 #

Proposal for a regulation
Article 50 – paragraph 2

2. Competent authorities of the issuer’s home Member State shall provide the EBSMA with information on the criteria referred to in Article 39(1) of this Article and specified in accordance with Article 39(6) on at least a yearly basis.

Amendment 737 #

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

Proposal for a regulation
Article 50 – paragraph 3

3. Where the EBA is of the opinion that e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the issuers or offerors of those e-money tokens and the competent authority of the issuer’ or offeror's home Member State. The EBA shall give issuers or offerors of such e- money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA shall duly consider those observations and comments.

Amendment 738 #

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

Proposal for a regulation
Article 50 – paragraph 3

3. Where the EBA is of the opinion that e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the ~~issue~~offerors of those e-money tokens and the competent authority of the ~~issue~~offeror’s home Member State. The EBA shall give ~~issue~~offerors of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA shall duly consider those observations and comments.

Amendment 739 #

Proposal for a regulation
Article 50 – paragraph 3

3. Where the EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, is of the opinion that e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e- money tokens and the competent authority of the issuer’s home Member State. The EBA shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall duly consider those observations and comments.

Amendment 74 #

Proposal for a regulation
Recital 15

(15) In order to ensure a proportionate approach, the requirements to draw up and publish a crypto-asset white paper should not apply to offers of crypto-assets, other than asset-referenced tokens or e-money tokens, that are decentralized or offered for free, or offers of crypto-assets that are exclusively offered to qualified investors as defined in Article 2, point (e), of Regulation (EU) 2017/1129 of the European Parliament and of the Council37 and can be exclusively held by such qualified investors, or that, per Member State, are made to a small number of persons, or that are unique and not fungible with other crypto-assets. Similar exceptions shall apply to asset-referenced tokens and e-money tokens. _________________ 37Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).

Amendment 740 #

Proposal for a regulation
Article 50 – paragraph 3

3. Where the EBSMA is of the opinion that e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the issuers of those e-money tokens and the competent authority of the issuer’s home Member State. The EBSMA shall give issuers of such e-money tokens and their competent authorities the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 741 #

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

Proposal for a regulation
Article 50 – paragraph 4

4. The EBA shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers or offerors of such e-money tokens and their competent authorities thereof.

Amendment 742 #

Proposal for a regulation
Article 50 – paragraph 4

4. The EBA shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the offerors of such e-money tokens and their competent authorities thereof.

Amendment 743 #

Proposal for a regulation
Article 50 – paragraph 4

4. The EBSMA shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 3 and immediately notify the issuers of such e-money tokens and their competent authorities thereof.

Amendment 744 #

Proposal for a regulation
Article 51 – paragraph 1 – subparagraph 1

1. An ~~issue~~offeror of e-money tokens, authorised as a credit institution or as an ‘electronic money institution’ as defined in Article 2(1) of Directive 2009/110/EC or applying for such authorisation, may indicate that they wish to classify their e- money tokens as significant e-money tokens. In that case, the competent authority shall immediately notify the request from the ~~issue~~offeror or applicant ~~issue~~offeror to EBA.

Amendment 745 #

Proposal for a regulation
Article 51 – paragraph 1 – subparagraph 1

1. An issuer of e-money tokens, authorised as a credit institution or as an ‘electronic money institution’ as defined in Article 2(1) of Directive 2009/110/EC or applying for such authorisation, may indicate that they wish to classify their e- money tokens as significant e-money tokens. In that case, the competent authority shall immediately notify the request from the issuer or applicant issuer to EBSMA.

Amendment 746 #

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

Proposal for a regulation
Article 51 – paragraph 1 – subparagraph 2

For the e-money tokens to be classified as significant, the ~~issue~~offeror or applicant ~~issue~~offeror of e-money tokens shall demonstrate, through a detailed programme of operations, that it is likely to meet at least three criteria referred to in Article 39(1), as specified in accordance with Article 39(6) and that it will be of a cross-border nature.

Amendment 747 #

Proposal for a regulation
Article 51 – paragraph 2 – subparagraph 1

2. Where, on the basis of the programme of operation, the EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, is of the opinion that the e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the issuer or applicant issuer’s home Member State. The EBA shall give the competent authority of the issuer or applicant issuer’s home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall duly consider those observations and comments.

Amendment 748 #

2. Where, on the basis of the programme of operation, the EBSMA is of the opinion that the e-money tokens meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the competent authority of the issuer or applicant issuer’s home Member State.

Amendment 749 #

Proposal for a regulation
Article 51 – paragraph 2 – subparagraph 2

The EBSMA shall give competent authority of the issuer or applicant issuer’s home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 75 #

Proposal for a regulation
Recital 15

(15) In order to ensure a proportionate approach, the requirements to draw up and publish a crypto-asset white paper should not apply to offers of crypto-assets, other than asset-referenced tokens or e-money tokens, that are offered for free, or offers of crypto-assets that are exclusively offered to qualified investors as defined in Article 2, point (e), of Regulation (EU) 2017/1129 of the European Parliament and of the Council37 and can be exclusively held by such qualified investors, or that, per Member State, are made to a small number of persons, or that are unique and not fungible with other crypto-assets. This regulation shall also not apply to crypto assets that have a very narrow and precise use case, that are designed for use in only a specific store or limited network of stores and that cannot be transferred between holders. Such specific-purpose crypto assets include inter alia public transport tokens and tokens for vouchers or loyalty schemes. _________________ 37Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).

Amendment 750 #

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

Proposal for a regulation
Article 51 – paragraph 3 – subparagraph 1

3. Where, on the basis of the programme of operation, the EBSMA is of the opinion that the e-money tokens do not meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBSMA shall prepare a draft decision to that effect and notify that draft decision to the issuer or applicant issuer and the competent authority of the issuer or applicant issuer’s home Member State.

Amendment 751 #

Proposal for a regulation
Article 51 – paragraph 3 – subparagraph 1

3. Where, on the basis of the programme of operation, the EBA after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro is of the opinion that the e-money tokens do not meet the criteria referred to in Article 39(1), as specified in accordance with Article 39(6), the EBA shall prepare a draft decision to that effect and notify that draft decision to the issuer or applicant issuer and the competent authority of the issuer or applicant issuer’s home Member State.

Amendment 752 #

Proposal for a regulation
Article 51 – paragraph 3 – subparagraph 2

The EBSMA shall give the issuer or applicant issuer and the competent authority of its home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBSMA shall duly consider those observations and comments.

Amendment 753 #

Proposal for a regulation
Article 51 – paragraph 3 – subparagraph 2

The EBA shall give the ~~issue~~offeror or applicant ~~issue~~offeror and the competent authority of its home Member State the opportunity to provide observations and comments in writing prior the adoption of its final decision. The EBA shall duly consider those observations and comments.

Amendment 754 #

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

Proposal for a regulation
Article 51 – paragraph 4

4. The EBA shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the ~~issuers~~offeror or applicant ~~issue~~offeror of such e- money tokens and their competent authorities thereof. The decision shall be immediately notified to the ~~issue~~offeror or applicant ~~issue~~offeror of e-money tokens and to the competent authority of its home Member State.

Amendment 755 #

Proposal for a regulation
Article 51 – paragraph 4

4. 4. The EBA, after consultation of the ECB and the relevant central banks of Member States whose currency is not the euro, shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the issuers or applicant issuer of such e-money tokens and their competent authorities thereof. ~~The decision shall be immediately notified to the issuer or applicant issuer of e-money tokens and to the competent authority of its home Member State.~~

Amendment 756 #

Proposal for a regulation
Article 51 – paragraph 4

4. The EBSMA shall take its final decision on whether an e-money token is a significant e-money token within three months after the notification referred to in paragraph 1 and immediately notify the issuers or applicant issuer of such e-money tokens and their competent authorities thereof. The decision shall be immediately notified to the issuer or applicant issuer of e-money tokens and to the competent authority of its home Member State.

Amendment 757 #

Proposal for a regulation
Article 52 – title

Specific additional obligations for ~~issue~~offerors of significant e-money tokens

Amendment 758 #

Proposal for a regulation
Article 52 – introductory part

~~Issue~~Offerors of at least one category of e- money tokens shall apply the following requirements applying to issuers of asset- referenced tokens or significant asset- referenced tokens:

Amendment 759 #

Proposal for a regulation
Article 52 – point b

(b) Article 41, paragraphs 1, 2, 3 and 34 of this Regulation;

Amendment 76 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Recital 16

(16) Small and medium-sized enterprises and start-ups should not be subject to excessive administrative burdens. Offers to the public of crypto- assets in the Union that do not exceed an adequate aggregate threshold over a period of 12 months should therefore be exempted from the obligation to draw up a crypto-asset white paper. However, EU horizontal legislation ensuring consumer protection, such as Directive 2011/83/EU of the European Parliament and of the Council38 , Directive 2005/29/EC of the European Parliament and of the Council39 or the Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts40 , including any information obligations contained therein, remain applicable to these offers to the public of crypto-assets where involving business-to- consumer relations. _________________ 38Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64). 39Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, p. 22) 40Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).

Amendment 760 #

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 1

1. Crypto-asset services shall only be provided by legal persons that have a registered office in a Member State of the Union and that have been authorised as crypto-asset service providers in accordance with Article 55Member States shall require crypto-asset service providers that intend to provide crypto-asset services, to obtain authorisation before commencing the provision of crypto-asset services. An authorisation shall only be granted to a legal person established in a Member State.

Amendment 761 #

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 1

1. Crypto-asset services shall only be provided by legal persons that have a registered office in a Member State of the Union and that have ~~bee~~an authoris~~ed as crypto-as~~ation which allows them to provide thoset service ~~provider~~s in accordance with Article 553a.

Amendment 762 #

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

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 1

1. Crypto-asset services shall only be provided by ~~legal persons that have a registered office in a Member State of the Union and that have been authorised as crypto-asset service providers in accordance with Article 55~~crypto asset service providers as defined in art 3 par 1 point 8. These providers will have a registered office in a Member State of the Union and does not have a parent undertaking, or a subsidiary, that is established in (a) third country which is listed as a high- risk third country having strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU)2015/849; (aa) third country which is listed in Annex I *or Annex II* of the EU list of non- cooperative jurisdictions for tax purposes;” (aaa) third country jurisdictions with a 0 % corporate tax rate or with no taxes on companies’ profits. The crypto asset service providers have been authorised as crypto-asset service providers in accordance with Article 55 and will only provide services linked to crypto assets which are not generated by a proof of work mechanism.

Amendment 763 #

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 1

1. Crypto-asset services shall only be provided by legal persons that have a registered office in a Member State of the Union and that have been authorised as crypto-asset service providers in accordance with Article 55.The ESMA shall require significant crypto-asset service providers who intend to provide crypto-asset services, to obtain authorisation before commencing the provision of crypto-asset services. ESMA shall ensure the supervision of the significant CASP in close cooperation with the competent authority of the home Member State. ESMA shall develop draft regulatory technical standards to determine the criteria to be taken account when assessing the significance of a CASP.

Amendment 764 #

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 2

Crypto-asset service providers shall, at all times, meet the conditions for their initial authorisation and shall notify ESMA without undue delay, of any material changes to the conditions for their authorisation.

Amendment 765 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 53 – paragraph 1 – subparagraph 2

Crypto-asset service providers shall, at all times, meet the conditions for their authorisation. Such authorisation shall be granted by the competent authority of the home Member State,.

Amendment 766 #

Eero HEINÄLUOMA

Proposal for a regulation
Article 53 – paragraph 1 a (new)

1a. The ESMA shall require significant crypto-asset service providers who intend to provide crypto-asset services, to obtain authorisation before commencing the provision of crypto-asset services. ESMA shall ensure the supervision of the significant CASP in close cooperation with the competent authority of the home Member State. ESMA shall develop draft regulatory technical standards to determine the criteria to be taken account when assessing the significance of a CASP.

Amendment 767 #

Proposal for a regulation
Article 53 – paragraph 1 a (new)

1a. A crypto-asset service provider, which has been authorised in accordance with Article 55, shall have its head office in the same Member State as its registered office and shall carry out at least part of its crypto-asset service business there.

Amendment 768 #

Proposal for a regulation
Article 53 – paragraph 2

2. Competent authorities that grant an authorisation under Article 55 shall ensure that such authorisation specifies the crypto-asset services that crypto-asset service providers are authorised to provide.deleted

Amendment 769 #

Proposal for a regulation
Article 53 – paragraph 2 a (new)

2a. The authorisation as a crypto-asset service provider referred to in paragraph 1 shall be valid for the entire Union and shall allow crypto-asset service providers to provide throughout the Union the crypto-asset services for which they have been authorised, either through the right of establishment, including through a branch, or through the freedom to provide services. Crypto-asset service providers that provide crypto-asset services on a cross-border basis shall not be required to have a physical presence in the territory of a host Member State.

Amendment 77 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Recital 16

(16) Small and medium-sized enterprises and start-ups should not be subject to excessive administrative burdens. Offers to the public of crypto- assets in the Union that do not exceed an adequate aggregate threshold over a period of 12 months should therefore be exempted from the obligation to draw up a crypto-asset white paper. However, EU horizontal legislation ensuring consumer protection, such as Directive 2011/83/EU of the European Parliament and of the Council38 , Directive 2005/29/EC of the European Parliament and of the Council39 or the Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts40 , including any information obligations contained therein, remain applicable to these offers to the public of crypto-assets where involving business-to- consumer relations. _________________ 38Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64). 39Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, p. 22) 40Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).

Amendment 770 #

Proposal for a regulation
Article 53 – paragraph 3 – subparagraph 1

3. An authorisation as a crypto-asset service provider shall be valid for the entire Union and shall allow crypto-asset service providers to provide throughout the Union the services for which they have been authorised, either through the right of establishment~~, including through a branch,~~ or through the freedom to provide services.

Amendment 771 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 53 – paragraph 3 – subparagraph 2

~~Crypto-asset service providers that provide crypto-asset services on a cross-border basis shall not be required to have a physical presence in the territory of a host Member State.~~deleted

Amendment 772 #

Proposal for a regulation
Article 53 – paragraph 3 – subparagraph 2

Crypto-asset service providers tsha~~t provide crypto-asset services on a cross-border basis shall not be required to have a physical presence in the territory of a host Member State~~ll be required to appoint a resident director and to have substantive management presence in the Union.

Amendment 773 #

Proposal for a regulation
Article 53 – paragraph 4

4. Crypto-asset service providers seeking to add crypto-asset services to their authorisation shall request the competent authorities that granted the authorisation for an extension of their authorisation by complementing and updating the information referred to in Article 54. ~~The request for extension shall be processed in accordance with Article 55.~~

Amendment 774 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

1. Legal persons that intend to provide crypto-asset services shall apply for authorisation as a crypto-asset service provider to the competent authority of the Member State where they have their registered office.deleted

Amendment 775 #

Proposal for a regulation
Article 54 – paragraph 1

1. ~~Legal persons that intend~~In order to be able to provide crypto- asset services ~~shall apply for authorisation as a crypto-asset service provider~~, crypto-asset service providers as defined in art 3 par 1 point 8 will apply for authorisation to the competent authority of the Member State where they have their registered office.

Amendment 776 #

Proposal for a regulation
Article 54 – paragraph 1

1. Legal persons that intend to provide crypto-asset services shall apply for authorisation as a crypto-asset service provider to ~~the competent authority of the Member State where they have their registered office~~ESMA.

Amendment 777 #

Proposal for a regulation
Article 54 – paragraph 2 – point a

(a) the name, including the legal name and any other commercial name to be used, the legal entity identifier of the applicant crypto-asset service provider, the website operated by that provider, and its physical address;deleted

Amendment 778 #

Proposal for a regulation
Article 54 – paragraph 2 – point a

(a) the name, including the legal name and any other commercial name to be used, the legal entity identifier of the applicant crypto-asset service provider, the website operated by that provider, a contact email address, a contact telephone number and its physical address;

Amendment 779 #

Proposal for a regulation
Article 54 – paragraph 2 – point a a (new)

(aa) name and contact details of a central contact person in charge of compliance with this Regulation and anti- money laundering obligations;

Amendment 78 #

Proposal for a regulation
Recital 16

(16) Small and medium-sized enterprises and start-ups should not be subject to excessive and disproportionate administrative burdens. Offers to the public of crypto- assets in the Union that do not exceed an adequate aggregate threshold over a period of 12 months should therefore be exempted from the obligation to draw up a crypto- asset white paper. However, EU horizontal legislation ensuring consumer protection, such as Directive 2011/83/EU of the European Parliament and of the Council38, Directive 2005/29/EC of the European Parliament and of the Council39 or the Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, including any information obligations contained therein40, remain applicable to these offers to the public of crypto-assets where involving business-to- consumer relations. _________________ 38Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64). 39Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, p. 22); 40Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).

Amendment 780 #

Proposal for a regulation
Article 54 – paragraph 2 – point b

~~(b) the legal status of the applicant crypto-asset service provider;~~deleted

Amendment 781 #

Proposal for a regulation
Article 54 – paragraph 2 – point c

~~(c) the articles of association of the applicant crypto-asset service provider;~~deleted

Amendment 782 #

Proposal for a regulation
Article 54 – paragraph 2 – point d

~~(d) a programme of operations setting out the types of crypto-asset services that the applicant crypto-asset service provider wishes to provide, including where and how these services are to be mark~~deleted;

Amendment 783 #

Proposal for a regulation
Article 54 – paragraph 2 – point e

~~(e) a description of the applicant crypto-asset service provider’s governance arrangements;~~deleted

Amendment 784 #

Proposal for a regulation
Article 54 – paragraph 2 – point e a (new)

(ea) a statement that the applicant crypto-asset service provider is not a subsidiary of a crypto-assets service provider or of the parent holding of such crypto-asset service provider, and is not controlled by a crypto-asset service provider-, located is in any of the following countries: (i) a third country which is listed as a high-risk third country that has strategic deficiencies in its regime on anti-money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council; (ii) a third country which is listed in Annex I or Annex II of the EU list of noncooperative jurisdictions for tax purposes.

Amendment 785 #

Proposal for a regulation
Article 54 – paragraph 2 – point f

(f) for all natural persons involved in the management body of the applicant crypto-asset service provider, and for all natural persons who, directly or indirectly, hold 20% or more of the share capital or voting rights, proof of the absence of a criminal record in respect of infringements of national rules in the fields of commercial law, insolvency law, financial services law, anti-money laundering law, counter-terrorism legislation, and professional liability obligations;deleted

Amendment 786 #

Proposal for a regulation
Article 54 – paragraph 2 – point f

(f) for all natural persons involved in the management body of the applicant crypto-asset service provider, and for all natural persons who, directly or indirectly, hold 210% or more of the share capital or voting rights, or ownership interest in the crypto-asset service provider, including through bearer shareholdings, or through control via other means, information on their identities, proof of the absence of a criminal record in respect of infringements of national rules in the fields of commercial law, insolvency law, financial services law, anti-money laundering law, counter-terrorism legislation, and professional liability obligations;

Amendment 787 #

Proposal for a regulation
Article 54 – paragraph 2 – point f

(f) for all natural persons involved in the management body of the applicant crypto-asset service provider, and for all natural persons who, directly or indirectly, hold 205% or more of the share capital or voting rights, proof of the absence of a criminal record in respect of infringements of national rules in the fields of commercial law, insolvency law, financial services law, anti-money laundering law, counter-terrorism legislation, and professional liability obligations;

Amendment 788 #

Proposal for a regulation
Article 54 – paragraph 2 – point g

(g) proof that the natural persons involved in the management body of the applicant crypto-asset service provider collectively possess sufficient knowledge, skills and experience to manage that provider and that those natural persons are required to commit sufficient time to the performance of their duties;deleted

Amendment 789 #

Proposal for a regulation
Article 54 – paragraph 2 – point g

(g) proof that the natural persons involved in the management body of the applicant crypto-asset service provider ~~collectively possess sufficient~~are of good repute and possess appropriate knowledge~~, skills~~ and experience to manage that provider ~~and that those natural persons are required to commit sufficient time to the performance of their duties~~;

Amendment 79 #

Proposal for a regulation
Recital 17 a (new)

(17a) As an offer of crypto-assets will not necessarily be underwritten or guaranteed, there is a risk that the funds raised are eventually significantly lower than the total consideration initially targeted, and that the proceeds will be insufficient to fund the project envisaged by the issuer. In these circumstances, investors who subscribed to the offer should be protected. Issuers of crypto- assets should therefore be required to specify in their whitepaper a minimum subscription target (soft cap) and to return funds to investors expeditiously where their offer does not reach such target. This regulation should set out the minimum amount permissible for such a soft cap

Amendment 790 #

Proposal for a regulation
Article 54 – paragraph 2 – point g

(g) proof that the natural persons involved in the management body of the applicant crypto-asset service provider ~~collectively~~ possess sufficient knowledge, skills and experience to manage that provider and that those natural persons are required to commit sufficient time to the performance of their duties;

Amendment 791 #

Proposal for a regulation
Article 54 – paragraph 2 – point g a (new)

(ga) for the persons involved in the management body, a declaration of any potential conflicts of interest that may exist or arise in performing the duties and how those conflicts are managed;

Amendment 792 #

Proposal for a regulation
Article 54 – paragraph 2 – point h

~~(h) a description of the applicant crypto-asset service provider’s internal control mechanism, procedure for risk assessment and business continuity plan;~~deleted

Amendment 793 #

Proposal for a regulation
Article 54 – paragraph 2 – point i

~~(i) descriptions both in technical and non-technical language of applicant crypto-asset service provider’s IT systems and security arrangements;~~deleted

Amendment 794 #

Proposal for a regulation
Article 54 – paragraph 2 – point j

~~(j) proof that the applicant crypto- asset service provider meets the prudential safeguards in accordance with Article 60;~~deleted

Amendment 795 #

Proposal for a regulation
Article 54 – paragraph 2 – point k

~~(k) a description of the applicant crypto-asset service provider’s procedures to handle complaints from clients;~~deleted

Amendment 796 #

Proposal for a regulation
Article 54 – paragraph 2 – point l

~~(l) a description of the procedure for the segregation of client’s crypto-assets and funds;~~deleted

Amendment 797 #

Proposal for a regulation
Article 54 – paragraph 2 – point m

~~(m) a description of the procedure and system to detect market abuse.~~deleted

Amendment 798 #

Proposal for a regulation
Article 54 – paragraph 2 – point m

(m) where the applicant crypto-asset service provider intends to operate a trading platform for crypto-assets, a description of the procedure and system to detect market abuse.

Amendment 799 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 54 – paragraph 2 – point m a (new)

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

Amendment 80 #

Proposal for a regulation
Recital 18

(18) In order to enable supervision, issuers of crypto-assets should, before any public offer of crypto-assets in the Union or before those crypto-assets are admitted to trading on a trading platform for crypto- assets, notify their crypto-asset white paper and, where applicable, their marketing communications, to the competent authority of the Member State where they have their registered office ~~or a branch~~. Issuers that are established in a third country should notify their crypto-asset white paper, and, where applicable, their marketing communication, to the competent authority of the Member State where the crypto-assets are intended to be offered or where the admission to trading on a trading platform for crypto- assets is sought in the first place.

Amendment 800 #

Proposal for a regulation
Article 54 – paragraph 2 – point m b (new)

(mb) a description of the applicant crypto-asset service provider’s internal control mechanisms and procedures, referred to in Article 61 Article 61a, including the procedures to ensure compliance with the obligations in relation to money laundering and terrorist financing;

Amendment 801 #

Proposal for a regulation
Article 54 – paragraph 2 – point n

~~(n) where the applicant crypto-asset service provider intends to ensure the custody and administration of crypto- assets on behalf of third parties, a description of the custody policy;~~deleted

Amendment 802 #

Proposal for a regulation
Article 54 – paragraph 2 – point o

~~(o) where the applicant crypto-asset service provider intends to operate a trading platform for crypto-assets, a description of the operating rules of the trading platform;~~deleted

Amendment 803 #

Proposal for a regulation
Article 54 – paragraph 2 – point p

(p) where the applicant crypto-asset service provider intends to exchange crypto-assets for fiat currency or crypto- assets for other crypto-assets, a description of the non-discriminatory commercial policy;deleted

Amendment 804 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 54 – paragraph 2 – point p

(p) where the applicant crypto-asset service provider intends to exchange crypto-assets for fiat currency or crypto- assets for other crypto-assets, a description of the non-discriminatory commercial policy governing the relationship with clients, including a description of the methodology for determining the price of the crypto-assets they propose for exchange against funds or other crypto- assets;

Amendment 805 #

Proposal for a regulation
Article 54 – paragraph 2 – point p

(p) where the applicant crypto-asset service provider intends to exchange crypto-assets for fiat currency or crypto- assets for other crypto-assets, a description of the non-discriminatory commercial policy governing the relationship with clients as well as a description of the methodology for determining the price of the crypto assets they propose for exchange against funds or other crypto assets;

Amendment 806 #

Proposal for a regulation
Article 54 – paragraph 2 – point q

~~(q) where the applicant crypto-asset service provider intends to execute orders for crypto-assets on behalf of third parties, a description of the execution policy;~~deleted

Amendment 807 #

Proposal for a regulation
Article 54 – paragraph 2 – point r

(r) where the applicant intends to receive and transmit orders for crypto- assets on behalf of third parties, proof that the natural persons giving advice on behalf of the applicant crypto-asset service provider have the necessary knowledge and expertise to fulfil their obligations.deleted

Amendment 808 #

Proposal for a regulation
Article 54 – paragraph 2 – point r a (new)

(ra) (s) a description of the applicant crypto-asset service provider’s internal control mechanisms and procedures for risk assessment to comply with the obligations in relation to money laundering and terrorist financing under Directive (EU) 2015/849 of the European Parliament and of the Council, procedure for risk assessment and business continuity plan.

Amendment 809 #

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

Proposal for a regulation
Article 54 – paragraph 2 – point r a (new)

(ra) a description of the applicant crypto assets service provider’s internal control mechanisms and procedures for compliance with Directive 2015/849 of the European Parliament and the Council as well as a description of the internal procedures to report on a regular basis crypto transactions to the competent tax authorities.

Amendment 81 #

Proposal for a regulation
Recital 18

(18) In order to enable supervision, issuers of crypto-assets should, before any public offer of crypto-assets in the Union or before those crypto-assets are admitted to trading on a trading platform for crypto- assets, notify their crypto-asset white paper and, where applicable, their marketing communications, to the competent authority of the Member State where they have their registered office or a branch. Issuers that are established in a third country should notify their crypto-asset white paper, and, where applicable, their marketing communication, to the competent authority of the Member State where the crypto-assets are intended to be offered or where the admission to trading on a trading platform for crypto-assets is sought in the first place. In both cases, any public offer or admission to trading or a trading platform is dependent on authorisation by the competent authority.

Amendment 810 #

Proposal for a regulation
Article 54 – paragraph 3

3. Competent authorities shall not require an applicant crypto-asset service provider to provide any information they have already received pursuant to Directive 2009/110/EC, Directive 2014/65/EU, Directive 2015/2366/EU or national law applicable to crypto-asset services prior to the entry into force of this Regulation, provided that such information or documents are still up-to- date and are accessible to the competent authorities.deleted

Amendment 811 #

Proposal for a regulation
Article 54 – paragraph 3

3. Competent authorities shall not require an applicant crypto-asset service provider to provide any information they have already received pursuant to Directive 2009/110/EC, Directive 2014/65/EU, Directive 2015/2366/EU or national law applicable to crypto-asset services prior to the entry into force of this Regulation, provided that such information or documents are still up-to- date and are accessible to the competent authorities.deleted

Amendment 812 #

Proposal for a regulation
Article 55 – paragraph 1

1. Competent authorities shall, within 25 working days of receipt of the application referred to in Article 54(1), assess whether that application is complete by checking that the information listed in Article 54(2) has been submitted. Where the application is not complete, the authorities shall set a deadline by which the applicant crypto-asset service providers are to provide the missing information.deleted

Amendment 813 #

Proposal for a regulation
Article 55 – paragraph 1

1. Competent authorities shall, within 215 working days of receipt of the application referred to in Article 54(1), assess whether that application is complete by checking that the information listed in Article 54(2) has been submitted. Where the application is not complete, the authorities shall set a deadline by which the applicant crypto-asset service providers are to provide the missing information.

Amendment 814 #

Proposal for a regulation
Article 55 – paragraph 1

1. Competent authorities shall, within 25 working days of receipt of the application referred to in Article 54(1), assess whether that application is complete by checking that the information listed in Article 54(2) has been submitted. Where the application is not complete, ~~the authorities shall set a deadline by which~~ the applicant crypto-asset service providers ~~are~~will have a maximum of 10 working days to provide the missing information.

Amendment 815 #

Proposal for a regulation
Article 55 – paragraph 2

~~2. Competent authorities may refuse to review applications where such applications remain incomplete after the deadline referred to in paragraph 1.~~deleted

Amendment 816 #

Proposal for a regulation
Article 55 – paragraph 2

2. Competent authorities ~~may~~shall refuse to review applications where such applications remain incomplete after the deadline referred to in paragraph 1.

Amendment 817 #

Proposal for a regulation
Article 55 – paragraph 3

~~3. Competent authorities shall immediately notify applicant crypto-asset service providers of the fact that an application is complete.~~deleted

Amendment 818 #

Proposal for a regulation
Article 55 – paragraph 4

4. Before granting or refusing to an authorisation as a crypto-asset service provider, competent authorities shall consult the competent authorities of another Member State in any of the following cases: (a) the applicant crypto-asset service provider is a subsidiary of a crypto-asset service provider authorised in that other Member State; (b) the applicant crypto-asset service provider is a subsidiary of the parent undertaking of a crypto-asset service provider authorised in that other Member State; (c) the applicant crypto-asset service provider is controlled by the same natural or legal persons who control a crypto- asset service provider authorised in that other Member State.deleted

Amendment 819 #

Proposal for a regulation
Article 55 – paragraph 4 – point a

~~(a) the applicant crypto-asset service provider is a subsidiary of a crypto-asset service provider authorised in that other Member State;~~deleted

Amendment 82 #

Proposal for a regulation
Recital 19

(19) UAlthough undue administrative burdens should be avoided~~. Competent authorities should therefore not be required to approve a crypto-asset white paper~~, a crypto-asset white paper should be approved by the competent authority before its publication. CFurthermore, competent authorities should, ~~however,~~ after publication, have the power to request that additional information is included in the crypto-asset white paper, and, where applicable, in the marketing communications.

Amendment 820 #

Proposal for a regulation
Article 55 – paragraph 4 – point b

~~(b) the applicant crypto-asset service provider is a subsidiary of the parent undertaking of a crypto-asset service provider authorised in that other Member State;~~deleted

Amendment 821 #

Proposal for a regulation
Article 55 – paragraph 5

5. Competent authorities shall, within three months from the date of receipt of a complete application, assess whether the applicant crypto-asset service provider complies with the requirements of this Title and shall adopt a fully reasoned decision granting or refusing an authorisation as a crypto-asset service provider. That assessment shall take into account the nature, scale and complexity of the crypto-asset services that the applicant crypto-asset service provider intends to provide. Competent authorities may refuse authorisation where there are objective and demonstrable grounds for believing that: (a) the management body of the applicant crypto-asset service provider poses a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration of the interest of its clients and the integrity of the market; (b) the applicant fails to meet or is likely to fail to meet any requirements of this Title.deleted

Amendment 822 #

Proposal for a regulation
Article 55 – paragraph 5 – subparagraph 1

5. Competent authorities shall, within t~~hree~~wo months from the date of receipt of a complete application, assess whether the applicant crypto-asset service provider complies with the requirements of this Title and shall adopt a fully reasoned decision granting or refusing an authorisation as a crypto-asset service provider. That assessment shall take into account the nature, scale and complexity of the crypto-asset services that the applicant crypto-asset service provider intends to provide.

Amendment 823 #

Proposal for a regulation
Article 55 – paragraph 5 – subparagraph 2 – point a

(a) the management body of the applicant crypto-asset service provider poses a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration of the interest of its clients and the integrity of the market;

Amendment 824 #

Proposal for a regulation
Article 55 – paragraph 5 – subparagraph 2 – point a a (new)

(aa) the shareholders or members that have qualifying holdings are not deemed suitable, taking into account the need to ensure the sound and prudent management of the crypto-asset service provider;

Amendment 825 #

Proposal for a regulation
Article 55 – paragraph 6

6. Competent authorities shall inform ESMA of all authorisations granted under this Article. ESMA shall add all the information submitted in successful applications to the register of authorised crypto-asset service providers provided for in Article57. ESMA may request information in order to ensure that competent authorities grant authorisations under this Article in a consistent manner.deleted

Amendment 826 #

Proposal for a regulation
Article 55 – paragraph 6

6. Competent authorities shall inform ESMA of all authorisations granted under this Article. ESMA shall add all the information submitted in successful applications to the register of authorised crypto-asset service providers ~~provided for in Article57. ESMA may request information in order to ensure that competent authorities grant authorisations under this Article in a consistent manner~~in accordance with inArticle57.

Amendment 827 #

Proposal for a regulation
Article 55 – paragraph 7

~~7. Competent authorities shall notify applicant crypto-asset service providers of their decisions to grant or to refuse authorisation within three working days of the date of that decision.~~deleted

Amendment 828 #

Proposal for a regulation
Article 56 – paragraph 1

1. Competent authorities shall withdraw the authorisations in any of the following situations the crypto-asset service provider: (a) has not used its authorisation within 18 months of the date of granting of the authorisation; (b) has expressly renounced to its authorisation; (c) has not provided crypto-asset services for nine successive months; (d) has obtained its authorisation by irregular means, including making false statements in its application for authorisation; (e) no longer meets the conditions under which the authorisation was granted and has not taken the remedial actions requested by the competent authority within a set-time frame; (f) has seriously infringed this Regulation.deleted

Amendment 829 #

Proposal for a regulation
Article 56 – paragraph 1 – point e a (new)

(ea) fails to have in place effective measures and procedures to prevent, detect and investigate illicit activities connected to the provision of crypto-asset services; (eb) its activity poses a threat to financial stability, market integrity or investor and consumer protection;

Amendment 83 #

Proposal for a regulation
Recital 19

(19) Undue administrative burdens should be avoided. Competent authorities should ~~therefore not be required to approve a crypto-asset white paper before its publication. Competent authorities should, however~~, after publication, have the power to request that additional information is included in the crypto-asset white paper, and, where applicable, in the marketing communications.

Amendment 830 #

Proposal for a regulation
Article 56 – paragraph 2

2. Competent authorities shall also have the power to withdraw authorisations in any of the following situations: (a) the crypto-asset service provider or the members of its management body have infringed national law implementing Directive (EU) 2015/84962 in respect of money laundering or terrorist financing; (b) the crypto-asset service provider has lost its authorisation as a payment institution in accordance with Article 13 of Directive (EU) 2015/2366 or its authorisation as an electronic money institution granted in accordance with Title II of Directive 2009/110/EC and that crypto-asset service provider has failed to remedy the situation within 40 calendar days. _________________ 62 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73–117)deleted

Amendment 831 #

Proposal for a regulation
Article 56 – paragraph 3

3. Where a competent authority withdraws an authorisation, the competent authority designated as a single point of contact in that Member State in accordance with Article 81 shall notify ESMA and the competent authorities of the host Member States thereof without undue delay. ESMA shall register the information on the withdrawal of the authorisation in the register referred to in Article 57.deleted

Amendment 832 #

Proposal for a regulation
Article 56 – paragraph 4

~~4. Competent authorities may limit the withdrawal of authorisation to a particular service.~~deleted

Amendment 833 #

Proposal for a regulation
Article 56 – paragraph 5

5. Before withdrawing an the authorisation, competent authorities shall consult the competent authority of another Member State where the crypto- asset service provider concerned is: (a) a subsidiary of a crypto-asset service provider authorised in that other Member State; (b) a subsidiary of the parent undertaking of a crypto-asset service provider authorised in that other Member State; (c) controlled by the same natural or legal persons who control a crypto-asset service provider authorised in that other Member State.deleted

Amendment 834 #

6. The EBA, ESMA and any competent authority of a host Member State may at any time request that the competent authority of the home Member State examines whether the crypto-asset service provider still complies with the conditions under which the authorisation was granted.deleted

Amendment 835 #

Proposal for a regulation
Article 56 – paragraph 7

7. Crypto-asset service providers shall establish, implement and maintain adequate procedures ensuring the timely and orderly transfer of the clients’ crypto- assets and funds to another crypto-asset service provider when an authorisation is withdrawn.deleted

Amendment 836 #

Proposal for a regulation
Article 56 a (new)

Article 56a Provision of crypto-asset services at the exclusive initiative of the client 1. Whereas client established or situated in the Union initiates at its own exclusive initiative the provision of a crypto-asset service [or activity] by a third-country firm, the requirement for authorisation under Article 53 shall not apply to the provision of that service [or activity] by the third country firm to that person including a relationship specifically relating to the provision of that service or activity. Without prejudice to intragroup relations, where a third‐country firm, including through an entity acting on its behalf or having close links with such third‐country firm or any other person acting on behalf of such entity, solicits clients or potential clients in the Union, regardless of the means of communication used for solicitation, promotion or advertising in the Union, it shall not be deemed to be a service provided at the own exclusive initiative of the client. The presumption of the second subparagraph shall apply regardless of any contractual clause or disclaimer purporting to state, for example, that the third country firm will be deemed to respond to the exclusive initiative of the client 2. An initiative by a client as referred to in paragraph 1 shall not entitle the third‐country firm to market new categories of crypto-asset services.

Amendment 837 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 56 a (new)

Article 56a Provision of crypto-asset services at the exclusive initiative of the client 1. Where a client established or situated in the Union initiates at its own exclusive initiative the provision of a crypto-asset service [or activity] by a third-country firm, the requirement for authorisation under Article 53 shall not apply to the provision of that service [or activity] by the third country firm to that person including a relationship specifically relating to the provision of that service or activity. Without prejudice to intragroup relations, where a third‐country firm, including through an entity acting on its behalf or having close links with such third‐country firm or any other person acting on behalf of such entity, solicits clients or potential clients in the Union, regardless of the means of communication used for solicitation, promotion or advertising in the Union, it shall not be deemed to be a service provided at the own exclusive initiative of the client. The presumption of the second subparagraph shall apply regardless of any contractual clause or disclaimer purporting to state, for example, that the third country firm will be deemed to respond to the exclusive initiative of the client. 2. An initiative by a client as referred to in paragraph 1 shall not entitle the third‐country firm to market new categories of crypto-asset services.

Amendment 838 #

Proposal for a regulation
Article 56 a (new)

Article 56a Provision of crypto-asset services at the exclusive initiative of the client 1. Where a client established or located in the Union initiates at its own exclusive initiative the provision of a crypto-asset service by a third-country firm, the requirement for authorisation under Article 53 shall not apply to the provision of that service by the third-country firm to that person including a relationship specifically relating to the provision of that service or activity. Without prejudice to intragroup relations, where a third‐country firm, including through an entity acting on its behalf or having close links with such third‐country firm or any other person acting on behalf of such entity, solicits clients or potential clients in the Union, regardless of the means of communication used for solicitation, promotion or advertising in the Union, it shall not be deemed to be a service provided at the own exclusive initiative of the client. The presumption of the second subparagraph shall apply regardless of any contractual clause or disclaimer purporting to state, for example, that the third country firm will be deemed to respond to the exclusive initiative of the client. 2. An initiative by a client as referred to in paragraph 1 shall not entitle the third‐country firm to market new categories of crypto-asset services.

Amendment 839 #

Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Proposal for a regulation
Article 57 – paragraph 2 – point a

(a) the name, legal form and the legal entity identifier ~~and the branches~~ of the crypto-asset service provider;

Amendment 84 #

Proposal for a regulation
Recital 20

(20) Competent authorities should be able to suspend or prohibit a public offer of crypto-assets or the admission of such crypto-assets to trading on a trading platform for crypto-assets where such an offer to the public or an admission to trading does not comply with the applicable requirements. Competent authorities should also have the power to publish a warning that an issuer has failed to meet those requirements, either on its website and/or through a press release.

Amendment 840 #

Proposal for a regulation
Article 57 – paragraph 2 – point b

(b) the commercial name, physical address, email address and telephone number of the crypto-asset service provider and website of the crypto-asset service provider or the trading platform for crypto-assets operated by the crypto-asset service provider;

Amendment 841 #

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

Proposal for a regulation
Article 57 – paragraph 2 – point c

(c) the name and address of the competent authority which granted authorisation and its contact details, including an email address as well as telephone number towards the single point of contact in charge of questions and problems around crypto asset service providers;

Amendment 842 #

Proposal for a regulation
Article 59 – paragraph 3

3. Crypto-asset service providers shall warn clients of risks associated with purchasing crypto-assets, in particular the significant price volatility of crypto-assets, combined with the inherent difficulties of valuing crypto-assets reliably. They should further warn clients explicitly that by investing in these types of product, they should be prepared to lose all their money.

Amendment 843 #

Proposal for a regulation
Article 59 – paragraph 4 a (new)

4a. Crypto-asset providers shall undertake to maintain continuity of their service and not to interrupt it because of a market event without having received the approval of the competent regulatory authority, failing which they may incur liability, particularly with regard to the rules on market manipulation.

Amendment 844 #

Proposal for a regulation
Article 60 – paragraph 1 – introductory part

1. Crypto-asset service providers shall, at all times, ~~have in place prudential safeguards equal to an amount of at least the higher of the following~~meet, at least, the requirement for own funds and eligible liabilities, as applicable:

Amendment 845 #

Proposal for a regulation
Article 60 – paragraph 1 – introductory part

1. Crypto-asset service providers shall, at all times, ~~have in place prudential safeguards equal to an amount of at least the higher of the following~~meet, at least, the requirement for own funds and eligible liabilities, as applicable:

Amendment 846 #

Proposal for a regulation
Article 60 – paragraph 1 – point a

(a) ~~the amount of permanent minimum capital requirements indicated in Annex IV, depending on the nature of the crypto-asset services provided~~for credit institutions authorised to provide crypto-asset services in accordance with this regulation the requirements for own funds and eligible liabilities in accordance with Regulation (EU) 575/2013 and Directive 2013/36/EU;

Amendment 847 #

Proposal for a regulation
Article 60 – paragraph 1 – point b

(b) ~~one quarter of the fixed overheads of the preceding year, reviewed annually~~for investment firms authorised to provide crypto-asset services in accordance with this regulation the requirements for initial capital and own funds in accordance with Regulation (EU) 2019/2033 and Directive 2019/2034/EU;

Amendment 848 #

Proposal for a regulation
Article 60 – paragraph 1 – point b a (new)

(ba) firms authorised to provide crypto- asset services in accordance with this regulation that are covered under (a) and (b) the requirements for initial capital and own funds in accordance with Directive 2009/110/EC.

Amendment 849 #

Proposal for a regulation
Article 60 – paragraph 2

2. The prudential safeguards referred to in paragraph 1 shall take any of the following forms: (a) own funds, consisting of Common Equity Tier 1 items referred to in Articles 26 to 30 of Regulation (EU) No 575/2013 after the deductions in full, pursuant to Article 36 of that Regulation, without the application of threshold exemptions pursuant to Articles 46 and 48 of that Regulation; (b) an insurance policy covering the territories of the Union where crypto-asset services are actively provided or a comparable guarantee.deleted

Amendment 85 #

Proposal for a regulation
Recital 21

(21) Crypto-asset white papers and, where applicable, marketing communications that have been duly notified to a competent authority and authorised by a competent authority should be published, after which issuers of crypto- assets should be allowed to offer their crypto-assets throughout the Union and to seek admission for trading such crypto- assets on a trading platform for crypto- assets.

Amendment 850 #

Proposal for a regulation
Article 60 – paragraph 2

2. The prudential safeguards referred to in paragraph 1 shall take any of the following forms: (a) own funds, consisting of Common Equity Tier 1 items referred to in Articles 26 to 30 of Regulation (EU) No 575/2013 after the deductions in full, pursuant to Article 36 of that Regulation, without the application of threshold exemptions pursuant to Articles 46 and 48 of that Regulation; (b) an insurance policy covering the territories of the Union where crypto-asset services are actively provided or a comparable guarantee.deleted

Amendment 851 #

Proposal for a regulation
Article 60 – paragraph 2 – point a

(a) own funds, consisting of Common Equity Tier 1 items referred to in Articles 26 to 30 of Regulation (EU) No 575/2013 after the deductions in full, pursuant to Article 36 of that Regulation, without the application of threshold exemptions pursuant to Articles 46 and 48 of that Regulationfor credit institutions authorised to provide crypto-asset services in accordance with para. 1 of Article 53a the requirements for own funds and eligible liabilities in accordance with Regulation (EU) 575/2013 and Directive 2013/36/EU;

Amendment 852 #

Proposal for a regulation
Article 60 – paragraph 2 – point b

(b) ~~an insurance policy covering the territories of the Union where crypto-asset services are actively provided or a comparable guarantee.~~for investment firms authorised to provide crypto-asset services in accordance with para. 2, 4 or 5 of Article 53a the requirements for initial capital and own funds in accordance with Regulation (EU) 2019/2033 and Directive 2019/2034/EU;

Amendment 853 #

Proposal for a regulation
Article 60 – paragraph 2 – point b a (new)

(ba) (c) firms authorised to provide crypto-asset services in accordance with para. 3 of Article 53a the requirements for initial capital and own funds in accordance with Directive 2009/110/EC.

Amendment 854 #

Proposal for a regulation
Article 60 – paragraph 3

3. Crypto-asset service providers that have not been in business for one year from the date on which they started providing services shall use, for the calculation referred to in paragraph 1, point (b), the projected fixed overheads included in their projections for the first 12 months’ of service provision, as submitted with their application for authorisation.deleted

Amendment 855 #

Proposal for a regulation
Article 60 – paragraph 3

3. Crypto-asset service providers that have not been in business for one year from the date on which they started providing services shall use, for the calculation referred to in paragraph 1, point (b), the projected fixed overheads included in their projections for the first 12 months’ of service provision, as submitted with their application for authorisation.deleted

Amendment 856 #

Proposal for a regulation
Article 60 – paragraph 4

4. The insurance policy referred to in paragraph 2 shall have at least all of the following characteristics: (a) it has an initial term of no less than one year; (b) the notice period for its cancellation is at least 90 days; (c) it is taken out from an undertaking authorised to provide insurance, in accordance with Union law or national law; (d) it is provided by a third-party entity.deleted

Amendment 857 #

Proposal for a regulation
Article 60 – paragraph 4

4. The insurance policy referred to in paragraph 2 shall have at least all of the following characteristics: (a) it has an initial term of no less than one year; (b) the notice period for its cancellation is at least 90 days; (c) it is taken out from an undertaking authorised to provide insurance, in accordance with Union law or national law; (d) it is provided by a third-party entity.deleted

Amendment 858 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 60 – paragraph 4 – introductory part

4. The insurance policy referred to in paragraph 2 shall be disclosed to the public through the crypto-asset service provider’s website and shall have at least all of the following characteristics:

Amendment 859 #

Proposal for a regulation
Article 60 – paragraph 4 – introductory part

4. The insurance policy referred to in paragraph 2 shall be disclosed to the public through the crypto asset service provider's website and shall have at least all of the following characteristics:

Amendment 86 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 21

(21) Crypto-asset white papers and, where applicable, marketing communications that have been duly notified to and been approved by a competent authority should be published, after which issuers of crypto- assets should be allowed to offer their crypto-assets throughout the Union and to seek admission for trading such crypto- assets on a trading platform for crypto- assets.

Amendment 860 #

Proposal for a regulation
Article 60 – paragraph 4 – point d

(d) it is provided by a third-party entity without any corporate link with the crypto asset service provider.

Amendment 861 #

Proposal for a regulation
Article 60 – paragraph 5

5. The insurance policy referred to in paragraph 2, point (b) shall include, coverage against the risk of: (a) loss of documents; (b) misrepresentations or misleading statements made; (c) acts, errors or omissions resulting in a breach of: i) legal and regulatory obligations; ii) the duty to act honestly, fairly and professionally towards clients; iii) obligations of confidentiality; (d) failure to establish, implement and maintain appropriate procedures to prevent conflicts of interest; (e) losses arising from business disruption or system failures; (f) where applicable to the business model, gross negligence in safeguarding of clients’ crypto-assets and funds.deleted

Amendment 862 #

Proposal for a regulation
Article 60 – paragraph 5

5. The insurance policy referred to in paragraph 2, point (b) shall include, coverage against the risk of: (a) loss of documents; (b) misrepresentations or misleading statements made; (c) acts, errors or omissions resulting in a breach of: i) legal and regulatory obligations; ii) the duty to act honestly, fairly and professionally towards clients; iii) obligations of confidentiality; (d) failure to establish, implement and maintain appropriate procedures to prevent conflicts of interest; (e) losses arising from business disruption or system failures; (f) where applicable to the business model, gross negligence in safeguarding of clients’ crypto-assets and funds.deleted

Amendment 863 #

Proposal for a regulation
Article 60 – paragraph 6

6. For the purposes of paragraph 1 point (b), crypto-asset service providers shall calculate their fixed overheads for the preceding year, using figures resulting from the applicable accounting framework, by subtracting the following items from the total expenses after distribution of profits to shareholders in their most recently audited annual financial statements or, where audited statements are not available, in annual financial statements validated by national supervisors: (a) staff bonuses and other remuneration, to the extent that those bonuses and that remuneration depend on a net profit of the crypto-asset service providers in the relevant year; (b) employees', directors' and partners' shares in profits; (c) other appropriations of profits and other variable remuneration, to the extent that they are fully discretionary; (d) non-recurring expenses from non- ordinary activities.deleted

Amendment 864 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 60 – paragraph 6

6. For the purposes of paragraph 1 point (b), crypto-asset service providers shall calculate their fixed overheads for the preceding year, using figures resulting from the applicable accounting framework, by subtracting the following items from the total expenses after distribution of profits to shareholders in their most recently audited annual financial statements or, where audited statements are not available, in annual financial statements validated by national supervisors: (a) staff bonuses and other remuneration, to the extent that those bonuses and that remuneration depend on a net profit of the crypto-asset service providers in the relevant year; (b) employees', directors' and partners' shares in profits; (c) other appropriations of profits and other variable remuneration, to the extent that they are fully discretionary; (d) non-recurring expenses from non- ordinary activities.deleted

Amendment 865 #

Proposal for a regulation
Article 60 – paragraph 6

6. For the purposes of paragraph 1 point (b), crypto-asset service providers shall calculate their fixed overheads for the preceding year, using figures resulting from the applicable accounting framework, by subtracting the following items from the total expenses after distribution of profits to shareholders in their most recently audited annual financial statements or, where audited statements are not available, in annual financial statements validated by national supervisors: (a) staff bonuses and other remuneration, to the extent that those bonuses and that remuneration depend on a net profit of the crypto-asset service providers in the relevant year; (b) employees', directors' and partners' shares in profits; (c) other appropriations of profits and other variable remuneration, to the extent that they are fully discretionary; (d) non-recurring expenses from non- ordinary activities.deleted

Amendment 866 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 60 – paragraph 6 a (new)

6a. For the purposes of paragraph 1 point (b), crypto-asset service providers shall calculate their fixed overheads for the preceding year, using figures resulting from the applicable accounting framework.

Amendment 867 #

1. Members of the management body of crypto-asset service providers shall have the necessary good repute and competence, in terms of qualifications, experience and skills to perform their duties and be fit and proper for the purpose of anti-money laundering and combatting the financing of terrorism. They shall demonstrate that they are capable of committing sufficient time to effectively carry out their functions.

Amendment 868 #

Proposal for a regulation
Article 61 – paragraph 1

1. Members of the management body of crypto-asset service providers shall have the necessary ~~good repute and~~ competence, in terms of qualifications, experience and skills to perform their duties. They shall demonstrate that they are capable of committing sufficient time to effectively carry out their functions.

Amendment 869 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 61 – paragraph 2

2. Natural persons who either own, directly or indirectly, more than 210% of the crypto-asset service provider's share capital or voting rights, or who exercise, by any other means, a power of control over the said crypto-asset service provider shall provide evidence that they have the necessary good repute and competence and be fit and proper for the purpose of anti- money laundering and combatting the financing of terrorism.

Amendment 87 #

Proposal for a regulation
Recital 22

(22) In order to further ensure consumer protection, the consumers who are acquiring crypto-assets, other than asset- referenced tokens or e-money tokens, directly from the issuer or from a crypto- asset service provider placing the crypto- assets on behalf of the issuer should be provided with a right of withdrawal during a limited period of time after their acquisition. ~~In order to ensure the smooth completion of an offer to the public of crypto-assets for which the issuer has set a time limit, this right of withdrawal should not be exercised by~~The right of withdrawal can be exercised again in case of changes to the white paper, in order to protect the consumer a~~fter~~nd this until the end of the subscription period. Furthermore, the right of withdrawal should not apply where the crypto-assets, other than asset-referenced tokens or e- money tokens, are admitted to trading on a trading platform for crypto- assets, as, in such a case, the price of such crypto-assets would depend on the fluctuations of crypto-asset markets.

Amendment 870 #

Proposal for a regulation
Article 61 – paragraph 2

2. Natural persons who either own, directly or indirectly, more than 205% of the crypto-asset service provider's share capital or voting rights, or who exercise, by any other means, a power of control over the said crypto-asset service provider shall provide evidence that they have the necessary good repute and competence.

Amendment 871 #

Proposal for a regulation
Article 61 – paragraph 2

2. Natural persons who either own, directly or indirectly, more than 20% of the crypto-asset service provider’s share capital or voting rights, or who exercise, by any other means, a power of control over the said crypto-asset service provider shall provide evidence that they have the necessary ~~good repute and~~ competence.

Amendment 872 #

Proposal for a regulation
Article 61 – paragraph 3

3. None of the persons referred to in paragraphs 1 or 2 shall have been convicted of offences relating to money laundering or terrorist financing or other financial crimes or for misconduct or fraud in the management of a business..

Amendment 873 #

Proposal for a regulation
Article 61 – paragraph 3 a (new)

3a. Crypto-asset service providers shall establish, implement and maintain decision-making procedures and an organisational structure which clearly and in documented manner specifies reporting lines and allocates functions and responsibilities;

Amendment 874 #

Proposal for a regulation
Article 61 – paragraph 3 b (new)

3b. Crypto-asset service providers shall establish, implement and maintain adequate internal control mechanisms designed to secure compliance with decisions and procedures at all levels of crypto-asset service provider;

Amendment 875 #

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

Proposal for a regulation
Article 61 – paragraph 7 – subparagraph 1

7. Crypto-asset service providers shall have ~~internal control mechanisms and effective procedures for risk assessment, including effective control and safeguard arrangements for managing ICT systems in accordance with Regulation~~mechanisms, systems and effective procedures in accordance with Regulation (EU) 2021/xx of the European Parliament and of the Council as well as effective procedures for risk assessment to comply with the obligations in relation to money laundering and terrorist financing under Directive (EU) 20~~21/xx~~15/849 of the European Parliament and of the Council.65 They shall monitor and, on a regular basis, evaluate the adequacy and effectiveness of internal control mechanisms and procedures for risk assessment and take appropriate measures to address any deficiencies. _________________ 65 Proposal for a Regulation of the European Parliament and the Council on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014 and (EU) No 909/2014 - COM(2020)595.

Amendment 876 #

Proposal for a regulation
Article 61 – paragraph 7 – subparagraph 1

7. Crypto-asset service providers shall have internal control mechanisms and effective procedures for risk assessment, including effective control and safeguard arrangements for managing ICT systems in accordance with Regulation (EU) 2021/xx of the European Parliament and of the Council~~.65~~ as well as effective procedures to comply with the obligations in relation to money laundering and terrorist financing under Directive (EU) 2015/849 of the European Parliament and of the Council. They shall monitor and, on a regular basis, evaluate the adequacy and effectiveness of internal control mechanisms and procedures for risk assessment and take appropriate measures to address any deficiencies. _________________ 65 Proposal for a Regulation of the European Parliament and the Council on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014 and (EU) No 909/2014 - COM(2020)595.

Amendment 877 #

Proposal for a regulation
Article 61 – paragraph 8 a (new)

8a. The records kept in accordance with this paragraph shall be provided to the client involved upon request and shall be kept for a period of five years and, where requested by the competent authority, for a period of up to seven years.

Amendment 878 #

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

Proposal for a regulation
Article 61 – paragraph 9 a (new)

9a. Crypto-asset service providers shall not provide services related in any way, shape, or form to crypto-assets with an in built anonymisation function that limits the traceability of transactions. In particular, they shall not facilitate the purchase or trading of such crypto-assets and shall not offer custody services for such crypto-assets.

Amendment 879 #

Proposal for a regulation
Article 61 – paragraph 9 a (new)

9a. Crypto-asset service providers shall comply with their obligations under Directive (EU) 2015/849 and shall put in place the necessary procedures for the effective prevention, detection and investigation of money laundering and terrorist financing in accordance with Directive (EU) 2015/849.

Amendment 88 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Recital 25

(25) Asset-referenced tokens aim at stabilising their value by reference to several fiat currencies, to one or more commodities, ~~to one or more other crypto- assets,~~ or to a basket of such assets. They could therefore be widely adopted by users to transfer value or as a means of payments and thus pose increased risks in terms of consumer protection and market integrity compared to other crypto-assets. Issuers of asset-referenced tokens should therefore be subject to more stringent requirements than issuers of other crypto- assets.

Amendment 880 #

Proposal for a regulation
Article 61 – paragraph 9 a (new)

9a. Crypto-asset service providers shall have in place systems, procedures and arrangements to prevent money laundering and terrorist financing in accordance with Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.

Amendment 881 #

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

Proposal for a regulation
Article 61 – paragraph 9 a (new)

9a. Crypto-asset service providers shall have internal control mechanisms and effective procedures for prevention, detection and investigation of money laundering and terrorist financing in accordance with the Anti-Money Laundering Directive ((EU) 2015/849/EC).

Amendment 882 #

Proposal for a regulation
Article 61 – paragraph 9 b (new)

9b. Crypto-asset service providers that transfer crypto-assets for payment purposes must have internal control mechanisms and effective procedures to ensure full traceability of all crypto-asset transfers within the EEA and transfers of crypto-assets from the EEA to other regions and from other regions to the EEA, in accordance with the provisions of Regulation (EU) 2015/847.

Amendment 883 #

Proposal for a regulation
Article 61 – paragraph 9 b (new)

9b. Crypto-asset service providers transferring crypto-assets for payment purposes shall have internal control mechanisms and effective procedures in place for the full traceability of all transfers of funds within the EEA, as well as those sent from within the EEA to another region and vice versa as defined the EU Funds Transfer Regulation ((EU) 847/2015).

Amendment 884 #

Proposal for a regulation
Article 61 – paragraph 9 b (new)

9b. Crypto-asset service providers shall not provide services related in any way, shape, or form to crypto-assets that do not meet the environmental sustainability criteria in accordance with Article 3a. In particular, they shall not facilitate the purchase or trading of such crypto-assets and shall not offer custody services for such crypto-assets.

Amendment 885 #

Proposal for a regulation
Article 61 a (new)

Article 61a Know your customer policy 1. All crypto-assets service providers shall have in place internal control mechanisms and effective procedures for prevention, detection and investigation of money laundering and terrorist financing and other criminal activities, in accordance with Directive (EU) 2015/849. They shall establish, implement and apply adequate customer due diligence procedures by identifying and verifying the client identity on the basis of documents, data or information obtained from a reliable and independent source and by identifying the identity of the beneficial owner and taking reasonable measures to verify that person's identity. 2. The internal control mechanisms and procedures referred to in paragraph 1 shall foresee enhanced due diligence measures for customers that wish to transfer crypto-assets to or from unhosted wallets. 3. Crypto-asset service providers shall not have any operation or any controlled entities in a third country which is listed as a high-risk third country that has strategic deficiencies in its regime on anti- money laundering and counter terrorist financing, in accordance with Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council or in a third country which is listed in Annex I or Annex II of the EU list of noncooperative jurisdictions for tax purposes, or be controlled by an entity established in any of those jurisdictions. 4. Crypto-asset service providers transferring crypto-assets shall have internal control mechanisms and effective procedures in place to ensure the full traceability of all transfers of crypto- assets, which equal or exceed EUR 1 000, and in particular to ensure they comply with the following obligations: (a) obtain and hold required and accurate information on the originator and the beneficiary and transmit this information to the crypto-service provider or financial institution of the beneficiary; (b) make the information available to the competent authorities upon request; (c) monitor the availability of information; (d) take freezing actions, and prohibit transactions with persons and entities included in the list of persons and entities subject to sanctions or any transfers towards a crypto-assets service provider included in the EU Register of non- compliant crypto-asset service providers referred to in Article 61b. For the purpose of point (a), the required information shall include: (i) the originator’s name; (ii) originator’s account number where such an account is used to process the transaction; (iii) the originator’s physical address, or national identity number, or customer identification number that uniquely identifies the originator to the ordering institution, or date and place of birth; (iv)beneficiary’s name; (v) beneficiary account number where such an account is used to process the transaction; (vi) date of the transaction and amount transferred. Where crypto-asset service providers cannot obtain the information required in accordance with the paragraph above, they shall refuse to process the transaction. 5. Crypto-assets service providers shall without delay immediately report to the competent authorities any reasonable suspicion that funds, regardless of the amount involved, are the proceeds of criminal activity or are related to terrorist financing or other criminal activity, and provide the competent authority directly, at its request, with all necessary information.

Amendment 886 #

Proposal for a regulation
Article 61 b (new)

Article 61b ESMA Register of non-compliant crypto- assets service providers For the purpose of Article 61a, point (d) of paragraph 3, ESMA shall identify crypto-asset service providers operating within and outside the EU which do not comply with EU or international standards for AML/CTF and tax purposes or do not at all times cooperate with EU law enforcement authorities and which pose significant threats to the financial system of the Union and the proper functioning of the internal market. ESMA shall set up and maintain a public register of 'non-compliant crypto-assets service providers’ and update the register on a regular basis. In order to identify non-compliant crypto-asset service providers, ESMA shall take into account the following indicators: (a) the crypto-asset service provider has strong deficiencies in relation to customer due diligence procedures and only requires its clients minimal information, such as an email address, name and a phone number; (b) the crypto-asset service provider has not a clear domiciliation in any country; (c) the crypto-asset service provider is located in a country included in the EU AML/CTF list of high risk third country; (d) the crypto-asset service provider is located in a country included in the EU list of non-cooperative jurisdictions for tax purposes; (e) the crypto-asset service provider is a decentralised exchange. When drawing up the list, ESMA shall take into account relevant evaluations, assessments or reports drawn up by international organisations with competence in the field of preventing money laundering and combating terrorist financing, law enforcement and intelligence agencies and any information provided by crypto-assets service providers.

Amendment 887 #

Proposal for a regulation
Article 62

Crypto-asset service providers shall notify, with a period of maximum 5 working days, their competent authority of any changes to their management body and shall provide their competent authority with all the necessary information to assess compliance with Article 61.

Amendment 888 #

Proposal for a regulation
Article 63 – paragraph 1

1. Crypto-asset service providers that hold crypto-assets belonging to clients or the means of access to such crypto-assets shall make adequate arrangements to safeguard the ownership rights of clients, especially in the event of the crypto-asset service provider’s insolvency, and to prevent the use of a client’s crypto-assets onfor their own account ~~except with the client’s express consent~~.

Amendment 889 #

Proposal for a regulation
Article 63 – paragraph 2

2. Where their business models or the crypto-asset services require holding clients’ funds other than e-money tokens, crypto-asset service providers shall have adequate arrangements in place to safeguard the rights of clients and prevent the use of clients’ funds, as defined under Article 4(25) of Directive (EU) 2015/236667 , for their own account. _________________ 67Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJL 33, 23.12.2015, p.35) for their own account.

Amendment 89 #

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

Proposal for a regulation
Recital 27

(27) To ensure the proper supervision and monitoring of offers to the public of asset-referenced tokens, issuers of asset- referenced tokens should have a registered office in the Union and its corporate structure should not incorporate entities established in either non cooperative jurisdictions for tax purposes or high risk third countries.

Amendment 890 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 63 – paragraph 3 – subparagraph 1

3. Crypto-asset service providers shall, ~~promptly place any~~by the end of the business day following the day the funds other than e- money tokens have been received, place such client’s funds, with a central bank, where available, or a credit institution. Crypto-asset service providers shall take all necessary steps to ensure that the client’s’ funds, other than e-money tokens held with a central bank or a credit institution are held in an account or accounts separately identifiable from any accounts used to hold funds belonging to the crypto-asset service provider.

Amendment 891 #

Proposal for a regulation
Article 63 – paragraph 3 – subparagraph 1

3. Crypto-asset service providers shall, promptly place any client’s funds, with a c~~entral bank or a credit institution~~redit institution or, where the relevant eligibility criteria and conditions for opening an account are met, a central bank.

Amendment 892 #

Proposal for a regulation
Article 63 – paragraph 3 – subparagraph 1

3. Crypto-asset service providers shall, promptly place any client’s funds, with a c~~entral bank or a credit institution~~redit institution or, where the relevant eligibility criteria and conditions for opening an account are met, a central bank.

Amendment 893 #

Proposal for a regulation
Article 63 – paragraph 3 – subparagraph 2

Crypto-asset service providers shall take all necessary steps to ensure that the clients’ funds held with a c~~entral bank or a credit institution~~redit institution or, where the relevant eligibility criteria and conditions for opening an account are met, with a central bank, are held in an account or accounts separately identifiable from any accounts used to hold funds belonging to the crypto-asset service provider.

Amendment 894 #

Proposal for a regulation
Article 64 – paragraph 4

4. Crypto-assets service providers shall investigate all complaints in a ~~timely and fair manner,~~fair manner and within 3 working days after reception of the complaint. The crypto asset service provider will notify a reference number of the complaint to the client and communicate the outcome of such investigations to their clients within a ~~reasonable~~ period of time not going beyond 25 working days.

Amendment 895 #

Proposal for a regulation
Article 65 – paragraph 1 – introductory part

1. Crypto-asset service providers shall maintain and operate an effective policy to prevent, identify, or manage ~~and disclose~~ conflicts of interest between themselves and:

Amendment 896 #

Proposal for a regulation
Article 65 – paragraph 1 a (new)

1a. The conflicts of interest policy established in accordance with paragraph 1 shall specify procedures to be followed and measures to be adopted in order to prevent or manage such conflicts, including at least the following: (a) effective procedures to prevent or control the exchange of information between relevant persons engaged in activities involving a risk of a conflict of interest where the exchange of that information may harm the interests of one or more clients; (b) the separate supervision of relevant persons whose principal functions involve carrying out activities on behalf of, or providing services to, clients whose interests may conflict, or who otherwise represent different interests that may conflict, including those of the firm; (c) the removal of any direct link between the remuneration of relevant persons principally engaged in one activity and the remuneration of, or revenues generated by, different relevant persons principally engaged in another activity, where a conflict of interest may arise in relation to those activities; (d) measures to prevent or limit any person from exercising inappropriate influence over the way in which a relevant person carries out investment or ancillary services or activities; (e) measures to prevent or control the simultaneous or sequential involvement of a relevant person in separate investment or ancillary services or activities where such involvement may impair the proper management of conflicts of interest.

Amendment 897 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Jonás FERNÁNDEZ

Proposal for a regulation
Article 65 – paragraph 2 – subparagraph 1

2. Crypto-asset service providers shall clearly disclose to their clients and potential clients the general nature and sources of conflicts of interest a~~nd the steps taken to mitigate them.~~ s well as the risks to the client that arise as a result of the conflicts of interest and the steps taken to mitigate them before undertaking business on their behalf. Crypto-asset service providers shall ensure that disclosure to clients and potential clients is a measure of last resort that shall be used only where the effective conflicts of interest policy established to prevent or manage its conflicts of interest is not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of the client will be prevented.

Amendment 898 #

Proposal for a regulation
Article 65 – paragraph 2 – subparagraph 1

2. Crypto-asset service providers shall disclose to their clients ~~and~~, potential clients ~~the general~~and the competent authority the specific nature and sources of conflicts of interest and the steps taken to mitigate them.

Amendment 899 #

Proposal for a regulation
Article 65 – paragraph 4

4. Crypto-asset service providers shall assess and at least annually review, their policy on conflicts of interest and take all appropriate measures to address any deficiencies. Over-reliance on disclosure of conflicts of interest shall be considered a deficiency in the crypto-asset service provider’s conflicts of interest policy.

Amendment 90 #

Proposal for a regulation
Recital 28

(28) Offers to the public of asset- referenced tokens in the Union or seeking an admission of such crypto-assets to trading on a trading platform for crypto- assets should be possible only where the competent authority has authorised the issuer of such crypto-assets and approved the crypto-asset white paper regarding such crypto-assets. The authorisation requirement should however not apply where the asset-referenced tokens are only offered to qualified investors, or when the offer to the public of asset- referenced tokens is below a certain threshold. Credit institutions authorised under Directive 2013/36/EU of the European Parliament and of the Council41 should not need another authorisation under this Regulation in order to issue asset-referenced tokens. In those cases, the issuer of such asset- referenced tokens should be still required to produce a crypto-asset white paper to inform buyers about the characteristics and risks of such asset-referenced tokens and to notify it to the relevant competent authority, before publication. _________________ 41Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

Amendment 900 #

Proposal for a regulation
Article 65 – paragraph 4

4. Crypto-asset service providers shall assess and at least annually review, their policy on conflicts of interest and take all appropriate measures to address any deficiencies and communicate them to the competent authority.

Amendment 901 #

Proposal for a regulation
Article 66 – paragraph 1 – subparagraph 1 – point e

(e) crypto-asset service providers retain the expertise and resources necessary for evaluating the quality of the services provided, for supervising the outsourced services effectively and for managing the risks associated with the outsourcing on an ongoing basis and shall provide proof of this expertise and resource to the competent authority before the outsourcing starts.;

Amendment 902 #

Proposal for a regulation
Article 66 – paragraph 3

3. Crypto-asset service providers shall enter into a written agreement with any third parties involved in outsourcing. That written agreement, a copy of which will be transferred to the competent authority of the crypto asset service providers at the beginning of the outsourcing relation, shall specify the rights and obligations of both the crypto-asset service providers and of the third parties concerned, and shall allow the crypto-asset service providers concerned to terminate that agreement.

Amendment 903 #

Proposal for a regulation
Article 66 – paragraph 4

4. Crypto-asset service providers and third parties shall~~, upon request,~~ make available to the competent authorities and the relevant authorities all information necessary to enable those authorities to assess compliance of the outsourced activities with the requirements of this Title.

Amendment 904 #

Proposal for a regulation
Article 66 a (new)

Article 66a Orderly wind-down of crypto-asset service providers Crypto-asset service providers carrying out one of the services referred to in Articles 67-71 shall have in place a plan that is appropriate to support an orderly wind-down of their activities under applicable national law, including continuity or recovery of any critical activities performed by those service providers or by any third-party entities. That plan shall demonstrate the ability of the crypto-asset service provider to carry out an orderly wind-down without causing undue economic harm to its users or to the stability of the markets of the reserve assets.

Amendment 905 #

Proposal for a regulation
Article 67 – paragraph 2

2. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall do its utmost to facilitate the exercise of the rights attached to the crypto-assets. They shall keep a register of positions, opened in the name of each client, corresponding to each client’s rights to the crypto-assets. Crypto-asset service providers shall record as soon as possible, in that register any movements following instructions from their clients. Their internal procedures shall ensure that any movement affecting the registration of the crypto-assets is evidenced by a transaction regularly registered in the client’s position register. The organisational choice relating to the service of custody such as the use of a multi-signature solution, is the responsibility of the custodian of crypto-assets. As a result, the fact that the movements on the customer's account are secured by the use of the multi-signature process is not such as to call into question the qualification of the custody service.

Amendment 906 #

Proposal for a regulation
Article 67 – paragraph 3 – subparagraph 2

Those rules and procedures shall ensure that the crypto-asset service provider cannot lose clients’ crypto-assets or the rights related to those assets or the means of access to the crypto-assets due to frauds, cyber threats or negligence.

Amendment 907 #

Proposal for a regulation
Article 67 – paragraph 3 a (new)

3a. The custody policy and a summary must be made available to clients on their request in a durable medium.

Amendment 908 #

Proposal for a regulation
Article 67 – paragraph 4 a (new)

4a. In case of forks or other changes to the underlying distributed ledger technology, or any other event likely to create or modify the client’s rights, the client shall be entitled to any crypto-assets or any rights newly created on the basis and to the extent of the client's positions at the time of the event's occurrence by such change, except when a valid agreement signed with the custodian pursuant to paragraph 1 prior to the event explicitly provides otherwise.

Amendment 909 #

Proposal for a regulation
Article 67 – paragraph 6

6. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall ensure that necessary procedures are in place to return crypto- assets held on behalf of their clients or the means of access ~~to those crypto-assets are returned as soon as possible to those~~ as soon as possible to those clients. When it is impossible to return the crypto-asset or the control over the means of access of those crypto-assets and except in the case of events not directly or indirectly attributable to the crypto-assets services provider, the crypto- assets custodian shall compensate its clients.

Amendment 91 #

Proposal for a regulation
Recital 28

(28) Offers to the public of asset- referenced tokens in the Union or seeking an admission of such crypto-assets to trading on a trading platform for crypto- assets should be possible only where the competent authority has authorised the issuer of such crypto-assets and approved the crypto-asset white paper regarding such crypto-assets. The authorisation requirement should however not apply where the asset-referenced tokens are only offered to qualified investors, or when the offer to the public of asset-referenced tokens is below a certain threshold. Credit institutions authorised under Directive 2013/36/EU of the European Parliament and of the Council41 should not need another authorisation under this Regulation in order to issue asset-referenced tokens. They should, however, notify at least three months prior to the issuance their respective competent authority of their intention to issue an asset-referenced token. In those cases, the issuer of such asset- referenced tokens should be still required to produce a crypto-asset white paper to inform buyers about the characteristics and risks of such asset- referenced tokens and to notify it to the relevant competent authority, before publication. _________________ 41Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

Amendment 910 #

Proposal for a regulation
Article 67 – paragraph 7

7. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall segregate holdings of crypto-assets on behalf of their clients from their own holdings and ensure that the means of access to crypto assets from their clients are clearly identified as such. They shall ensure that, on the DLT, their clients’ crypto-assets are held on separate addresses from those on which their own crypto-assets are held.

Amendment 911 #

Proposal for a regulation
Article 67 – paragraph 8

8. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall bnot restrict the liableility to their clients for loss of crypto- assets ~~as a~~ resulting from ~~a malfunction or hacks up to the market value of the crypto-assets lost~~wilful misconduct or gross negligence in performing their duties and obligations under their respective agreements, including losses resulting from a malfunction or hacks.

Amendment 912 #

Proposal for a regulation
Article 67 – paragraph 8

8. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall be held liable to their clients for the loss of crypto-assets or of the means of access to the crypto-assets as a result~~ing~~ from a malfunction or hacks that are attributed to the provision of the relevant service and the operation of the service provider. The liability of the crypto-asset service provider shall be up to the market value of the crypto-assets lost.

Amendment 913 #

Proposal for a regulation
Article 67 – paragraph 8

8. Crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties shall be liable to their clients for loss of crypto-assets ~~as a resulting from~~or of the means of access to the crypto-assets as a resulting from an operational incident associate with the provision of the service or the operation of the service provider, including a malfunction or hacks, up to the market value of the crypto-assets lost.

Amendment 914 #

Eero HEINÄLUOMA, Victor NEGRESCU, Pedro MARQUES, Joachim SCHUSTER

Proposal for a regulation
Article 67 – paragraph 8 a (new)

8a. If crypto-asset service providers that are authorised for the custody and administration of crypto-assets on behalf of third parties make use of other providers for the custody and administration of the crypto-assets they hold on behalf of third parties, they shall only make use of crypto-asset service providers authorised in accordance with Art 53.Crypto-asset service providers that are authorised to hold and administer crypto-assets on behalf of third parties and that make use of other providers for the custody and administration of crypto- assets shall inform their customers thereof.

Amendment 915 #

Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 1 – introductory part

1. Crypto-asset service providers will be authorised for the operation of a trading platform for crypto-assets provided they have set up a partnership with a credit institution which has opened real-name bank accounts for their customers. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall lay down operating rules for the trading platform. These operating rules shall at least:

Amendment 916 #

Eero HEINÄLUOMA, Joachim SCHUSTER, Pedro MARQUES, Victor NEGRESCU

Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 1 – point h a (new)

(ha) (i) set transparent and non- discriminatory rules, based on objective criteria, governing access to its facility.

Amendment 917 #

Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 2

For the purposes of point (a), the operating rules shall clearly state that a crypto-asset shall not be admitted to trading on the trading platform, where a crypto-asset white paper has not been published~~, unless such a~~ or where the crypto- asset ~~benefits from the exemption set out in Articles 4(2).~~provider is not connected to an open real-name bank account

Amendment 918 #

Proposal for a regulation
Article 68 – paragraph 1 – subparagraph 4

The operating rules of the trading platform for crypto-assets shall prevent the admission to trading of crypto-assets which have inbuilt anonymisation function unless the holders of the crypto-assets and their transaction history can be identified by the crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets or by competent authorities.

Amendment 919 #

Proposal for a regulation
Article 68 – paragraph 2

2. These operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home Member States or in ~~another language that is customary in the sphere of finance~~English. Those operating rules shall be made public on the website of the crypto-asset service provider concerned.

Amendment 92 #

Proposal for a regulation
Recital 29

(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability~~, monetary policy transmission and monetary sovereignty~~. Such refusal shall be based on clear criteria laid down in a legislative act of the Union. The competent authority should consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies~~, the European Central Bank (ECB)~~ and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA~~, and, where applicable, the ECB~~ and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. Opinions should be non-binding. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 920 #

Proposal for a regulation
Article 68 – paragraph 2

2. These operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home Member States ~~or in another language that is customary in the sphere of finance~~. Those operating rules shall be made public on the website of the crypto-asset service provider concerned.

Amendment 921 #

Eero HEINÄLUOMA, Pedro MARQUES, Jonás FERNÁNDEZ, Victor NEGRESCU

Proposal for a regulation
Article 68 – paragraph 2

2. These operating rules referred to in paragraph 1 shall be drafted in one of the official languages of the home Member States orand in another language that is customary in the sphere of finance. Those operating rules shall be made public on the website of the crypto-asset service provider concerned.

Amendment 922 #

Proposal for a regulation
Article 68 – paragraph 4 – point e a (new)

(ea) prevent and detect insider dealing, market manipulation and attempted insider dealing and market manipulation.

Amendment 923 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 68 – paragraph 4 – point e a (new)

(ea) prevent and detect insider dealing, market manipulation and attempted insider dealing and market manipulation.

Amendment 924 #

Proposal for a regulation
Article 68 – paragraph 8

8. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall complete the final settlement of a crypto-asset transaction on the DLT on the ~~same date as~~within 72hrs of the transaction~~s has been~~ being executed on the trading platform.

Amendment 925 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 68 – paragraph 8

8. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall ~~comple~~initiate the final settlement of a crypto-asset transaction ~~on the DLT on the same date as the~~within 24 hours after transactions has been executed on the trading platform.

Amendment 926 #

8. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall complete the final settlement of a crypto-asset transaction on the DLT, in the case of crypto-asset deposit or withdrawal activities only, on the same date as the transactions has been executed on the trading platform or, in the case of transactions settled outside the DLT, on the closing day of the various related transactions.

Amendment 927 #

Proposal for a regulation
Article 68 – paragraph 10 a (new)

10a. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is above a threshold set by the ESMA shall report complete and accurate details of transactions in crypto- assets traded on its platform to the competent authority as quickly as possible, and no later than the close of the following working day.

Amendment 928 #

Proposal for a regulation
Article 68 – paragraph 10 a (new)

10a. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is above a threshold set by the ESMA shall report complete and accurate details of transactions in crypto- assets traded on its platform to the competent authority as quickly as possible, and no later than the close of the following working day.

Amendment 929 #

Proposal for a regulation
Article 68 – paragraph 10 b (new)

10b. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is below the threshold mentioned in paragraph 12 shall keep at the disposal of the competent authority, for at least five years, complete and accurate details of transactions in crypto- assets traded on its platform.

Amendment 93 #

Proposal for a regulation
Recital 29

(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. Refusal should be based on comprehensive and clear criteria established in any secondary legislation. The competent authority sh~~ould~~all consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. Any opinions of the ECB should be non- binding. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to ~~seek an~~apply for admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 930 #

10b. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets whose annual revenue is below the threshold mentioned in paragraph 11 shall keep at the disposal of the competent authority, for at least five years, complete and accurate details of transactions in crypto- assets traded on its platform.

Amendment 931 #

Proposal for a regulation
Article 68 – paragraph 10 c (new)

10c. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall keep at the disposal of the competent authority, for at least five years, the relevant data relating to all orders in crypto-assets which are advertised through their systems. The records shall contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order and the details of which shall be reported or kept at the disposal of the competent authority in accordance with paragraphs 11 and 12.

Amendment 932 #

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

Proposal for a regulation
Article 68 – paragraph 10 c (new)

10c. Crypto-asset service providers that are authorised for the operation of a trading platform for crypto-assets shall keep at the disposal of the competent authority, for at least five years, the relevant data relating to all orders in crypto-assets which are advertised through their systems. The records shall contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order and the details of which shall be reported or kept at the disposal of the competent authority in accordance with paragraphs 11 and 12.

Amendment 933 #

Proposal for a regulation
Article 68 – paragraph 10 a (new)

10a. Crypto-asset service providers that are authorised as offerors for the operation of a trading platform and of certain crypto-assets, shall ensure compliance with publication and audit requirements as laid down in this Regulation by having a dedicated page on their website and/or app on the crypto- assets that they offer.

Amendment 934 #

Ondřej KOVAŘÍK, Billy KELLEHER, Ivars IJABS, Martin HLAVÁČEK

Proposal for a regulation
Article 69 – paragraph 3

3. Crypto-asset service providers that are authorised for exchanging crypto-assets against fiat currency or other crypto-assets shall, if no fixed price has been agreed, execute the clients' orders at the average prices displayed atbetween the time of ~~their~~ receipt and the time of the execution of the order.

Amendment 935 #

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

Proposal for a regulation
Article 70 – paragraph 1

1. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall take all necessary steps to obtain, when executing orders, the best possible result for their clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order, unless the crypto-asset service provider concerned executes orders for crypto-assets following specific instructions given by its clients. Where a crypto-asset service provider executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the crypto-assets and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

Amendment 936 #

Aurore LALUCQ, Eero HEINÄLUOMA, Eva KAILI, Jonás FERNÁNDEZ

Proposal for a regulation
Article 70 – paragraph 1

1. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall take all necessary steps to obtain, when executing orders, the best possible result for their clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order, unless the crypto-asset service provider concerned executes orders for crypto-assets following specific instructions given by its clients. Where a crypto-asset service provider executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the crypto-assets and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

Amendment 937 #

Proposal for a regulation
Article 70 – paragraph 1

1. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall take all necessary steps to obtain, when executing orders, the best possible result for their clients taking into account the best execution factors of price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order, unless the crypto-asset service provider concerned executes orders for crypto-assets following specific instructions given by its clients. Where a crypto-asset service provider executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the crypto-assets and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

Amendment 938 #

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

Proposal for a regulation
Article 70 – paragraph 1 a (new)

1a. Crypto-asset service providers that are authorised to execute orders for crypto-assets on behalf of third parties shall ask the client or potential client to provide information regarding that person’s knowledge and experience in crypto-assets, the client’s objectives, risk tolerance, financial situation including its the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets so as to enable the crypto-asset service provider to assess whether the crypto-asset envisaged is appropriate for the client. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the crypto-asset is not appropriate to the client or potential client, it shall warn the client or potential client.

Amendment 939 #

Proposal for a regulation
Article 70 – paragraph 3

3. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall ~~provide appropriate and clear information to their clients on their order execution policy and any significant change to it.~~ask the client or potential client to provide information regarding that person’s knowledge and experience in crypto- assets, the client’s objectives, risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets so as to enable the crypto-asset service provider to assess whether the crypto-asset envisaged is appropriate for the client. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the crypto-asset is not appropriate to the client or potential client, it shall warn the client or potential client

Amendment 94 #

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

(29) A competent authority should be obliged to refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. The competent authority should be obliged to consult the EBA and ESMA and, where the asset- referenced tokens isare referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a ~~non-binding~~n opinion on the prospective issuer’s application. Opinions should be non- binding with the exception of those of the ECB and the Member States’ central banks on monetary policy enforcement and ensuring the secure handling of payments. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 940 #

Aurore LALUCQ, Eero HEINÄLUOMA, Eva KAILI, Jonás FERNÁNDEZ

Proposal for a regulation
Article 70 – paragraph 3

3. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall provide appropriate and clear information to their clients on their order execution policy and any significant change to it. That information shall explain clearly, in sufficient detail and in a way that can be easily understood by clients, how orders will be executed by the crypto-asset service provider for the client. Crypto- asset service providers shall obtain the prior and informed consent of their clients to the order execution policy. Where a bundle of services or products is envisaged pursuant to Article 24(11), the assessment shall consider whether the overall bundled package is appropriate. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the product or service is not appropriate to the client or potential client, the crypto-asset service provider shall warn the client or potential client. That warning may be provided in a standardised format. Where clients or potential clients do not provide the information referred to under the first subparagraph, or where they provide insufficient information regarding their knowledge and experience, the investment firm shall warn them that the investment firm is not in a position to determine whether the service or product envisaged is appropriate for them. That warning may be provided in a standardised format.

Amendment 941 #

Proposal for a regulation
Article 70 – paragraph 3 a (new)

3a. Crypto-asset service providers that are authorised to execute orders for crypto-assets on behalf of third parties shall ask the client or potential client to provide information regarding that person’s knowledge and experience in crypto-assets, the client’s objectives, risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets so as to enable the crypto-asset service provider to assess whether the crypto-asset envisaged is appropriate for the client. Where the crypto-asset service provider considers, on the basis of the information received under the first subparagraph, that the crypto-asset is not appropriate to the client or potential client, it shall warn the client or potential client.

Amendment 942 #

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

Proposal for a regulation
Article 70 a (new)

Article 70a 4. Crypto-asset service providers that are authorised to execute orders for crypto- assets on behalf of third parties shall monitor the effectiveness of their order execution arrangements and execution policy in order to identify and, where appropriate, correct any deficiencies. In particular, they shall assess, on a regular basis, whether the execution venues included in the order execution policy provide for the best possible result for the client or whether they need to make changes to their execution arrangements. Member States shall require crypto-asset service providers to notify clients with whom they have an ongoing client relationship of any material changes to their order execution arrangements or execution policy.

Amendment 943 #

Proposal for a regulation
Article 71 – paragraph 2 – point b a (new)

(ba) c. incentives paid by the issuer to the crypto asset service provider.

Amendment 944 #

Proposal for a regulation
Article 71 – paragraph 2 a (new)

2a. (c) incentives paid by the issuer to the crypto-asset service provider.

Amendment 945 #

Proposal for a regulation
Article 73 – title

Advice on crypto-assets and portfolio management

Amendment 946 #

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

Proposal for a regulation
Article 73 – title

73 APaid advice on crypto-assets

Amendment 947 #

Proposal for a regulation
Article 73 – paragraph 1

1. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall assess whether c~~ompatibility of such crypto-assets with the needs of the clients and recommend them only when this is in the interest of the client~~rypto-asset services or crypto-assets are suitable for the clients, considering the clients’ knowledge and experience in crypto- assets, objectives and ability to bear losses.

Amendment 948 #

Aurore LALUCQ, Eero HEINÄLUOMA, Eva KAILI, Jonás FERNÁNDEZ

Proposal for a regulation
Article 73 – paragraph 1

1. Crypto-asset service providers that are authorised to provide advice on crypto- assets ~~shall assess the compatibility~~or portfolio management of crypto- assets shall assess the suitability and appropriateness of such crypto-assets and services with the needs and specific situation of the clients and ~~recommend~~provide them only when this is in the interest of the clients. 1a. Crypto-asset service providers that are authorised to provide advice on crypto- assets or portfolio management of crypto shall not accept and retain fees, commissions or any monetary or nonmonetary benefits paid or provided by an issuer or any third party or a person acting on behalf of a third party in relation to the provision of the service to their clients.

Amendment 949 #

Proposal for a regulation
Article 73 – paragraph 1

1. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall assess the compatibility of such crypto-assets with the ~~needs of the clients and recommend them only when this is in the interest of the client~~requirements and preferences of the client or potential client and recommend them only when they are suitable for the client or potential client and, in particular, are in accordance with his or her risk tolerance and ability to bear losses.

Amendment 95 #

Proposal for a regulation
Recital 29

(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. The competent authority should consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a ~~non-~~binding opinion on the prospective issuer’s application. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 950 #

Aurore LALUCQ, Eero HEINÄLUOMA, Eva KAILI, Jonás FERNÁNDEZ

1. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall assess the compatibility of such crypto-assets with the requirements and preferences demands and needs of the clients or potential client and recommend them only when th~~is is~~ey are suitable for and in the interest of the clients or potential client and, in particular, are in accordance with his or her risk tolerance and ability to bear losses.

Amendment 951 #

Proposal for a regulation
Article 73 – paragraph 1 a (new)

1a. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall in good time before providing advice on crypto-assets inform potential clients: (a) whether or not the advice is provided on an independent basis; (b) whether the advice is based on a broad or on a more restricted analysis of different crypto-assets and, in particular, whether the range is limited to crypto- assets issued or offered by entities having close links with the crypto-asset service provider or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; Crypto-asset service providers shall also provide potential clients with information on all costs and associated charges, including the cost of advice, where relevant, the cost of crypto-assets recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.

Amendment 952 #

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

Proposal for a regulation
Article 73 – paragraph 1 a (new)

1a. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall in good time before providing advice on crypto-assets inform potential clients: (a) whether or not the advice is provided on an independent basis; (b) whether the advice is based on a broad or on a more restricted analysis of different crypto-assets and, in particular, whether the range is limited to crypto- assets issued or offered by entities having close links with the crypto-asset service provider or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; Crypto-asset service providers shall also provide potential clients with information on all costs and associated charges, including the cost of advice, where relevant, the cost of crypto-assets recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.

Amendment 953 #

Proposal for a regulation
Article 73 – paragraph 1 a (new)

1a. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall in good time before providing advice on crypto-assets inform potential clients: (a) whether or not the advice is provided on an independent basis; (b) whether the advice is based on a broad or on a more restricted analysis of different crypto-assets and, in particular, whether the range is limited to crypto- assets issued or offered by entities having close links with the crypto-asset service provider or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; Crypto-asset service providers shall also provide potential clients with information on all costs and associated charges, including the cost of advice, where relevant, the cost of crypto-assets recommended or marketed to the client and how the client may pay for it, also encompassing any third-party payments.

Amendment 954 #

Aurore LALUCQ, Eero HEINÄLUOMA, Eva KAILI, Jonás FERNÁNDEZ

Proposal for a regulation
Article 73 – paragraph 3 – subparagraph 1

3. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers that are authorised to provide advice on crypto-assets ~~shall request information about the client or prospective client’s knowledge of, and experience in~~or portfolio management of crypto-assets shall obtain from the client or prospective client the information referred to in Article 73a (2), so as to enable the crypto- asset~~s, objectives, financial~~ service provider to provide to the client or prospective client the services and crypto-assets that are suit~~uation including the ability to bear losses and a basic understanding of risks involved in purchasing crypto-assets.~~able for him or her and, in particular, are in accordance with his risk tolerance and ability to bear losses. Crypto-asset service providers that are authorised to provide advice on crypto- assets or portfolio management of crypto- assets shall warn clients that: (a) due to their tradability, the value of crypto-assets may fluctuate; (b) the crypto-assets may be subject to full or partial losses; (c) the crypto-assets may not always be transferable; (d) the crypto-assets may not be liquid;

Amendment 955 #

Proposal for a regulation
Article 73 – paragraph 3 – subparagraph 1

3. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers that are authorised to provide advice on crypto-assets shall request information about the client or p~~rospective~~otential client’s knowledge of, and experience in crypto-assets, the clients' objectives, financial situation including risk tolerance, financial situation including the ability to bear losses, and a basic understanding of risks involved in purchasing crypto-assets. Crypto-asset service providers that are authorised to provide advice on crypto-assets shall warn clients that, due to their nature, (a) the crypto-assets may lose their value in part or in full; (b) the crypto-assets may not always be transferable; (c) the crypto-assets may not be liquid; (d) the value of crypto-assets may fluctuate; (e) where applicable, public protection schemes protecting the value of crypto assets and public compensation schemes do not exist and crypto-assets are not covered by public investor compensation or deposit guarantee schemes.

Amendment 956 #

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

Proposal for a regulation
Article 73 – paragraph 3 – subparagraph 2

Crypto-asset service providers that are authorised to provide advice on crypto- assets shall warn clients that, due to their tradability, the value of crypto-assets may fluctuate, that the crypto-assets may lose their value in part or in full, that the crypto-assets may not always be transferable and that the crypto-assets may not be liquid.

Amendment 957 #

Proposal for a regulation
Article 73 – paragraph 3 a (new)

3a. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers that are authorised to provide advice on crypto-assets shall request information about the client or potential client’s knowledge of, and experience in crypto-assets, the clients' objectives, financial situation including risk tolerance, financial situation including the ability to bear losses, and basic understanding of risks involved in purchasing crypto-assets. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall warn clients that, due to their nature, (a) the crypto-assets may lose their value in part or in full; (b) the crypto-assets may not always be transferable; (c) the crypto-assets may not be liquid; (d) the value of crypto-assets may fluctuate; (e) where applicable, public protection schemes protecting the value of crypto assets and public compensation schemes do not exist and crypto-assets are not covered by public investor compensation or deposit guarantee schemes.

Amendment 958 #

Aurore LALUCQ, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

Proposal for a regulation
Article 73 – paragraph 4

4. Crypto-asset service providers that are authorised to provide advice on crypto- assets shall establish, maintain and implement policies and procedures to enable them to collect and assess all information necessary to conduct this assessment for each client. They shall take reasonable steps to ensure that the information collected about their clients or p~~rospective~~otential clients is reliable.

Amendment 959 #

Proposal for a regulation
Article 73 – paragraph 5

5. Where ~~clients do not provide the information required pursuant to paragraph 4, or where~~ crypto-asset service providers that are authorised to provide advice on crypto-assets consider, on the basis of the information received under paragraph 43 , that the ~~prospective clients or clients have insufficient knowledge,~~crypto-assets services or crypto-assets are not suitable nor appropriate for the investment profile of the client, the crypto-asset service providers that are authorised to provide advice on crypto- assets shall inform those clients or prospective clients that the crypto-assets or crypto-asset services ~~may b~~are inappropriate for them and ~~issue them a warning on the risks associated with crypto-assets. That risk warning shall~~shall not recommend or shall not decide to trade where the services or crypto-assets are not suitable for the client clearly state the risk of losing the entirety of the money invested or converted into crypto-assets. Clients shall expressly acknowledge that they have received and understood the warning issued by the crypto-asset service provider concerned.

Amendment 96 #

Aurore LALUCQ, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

Proposal for a regulation
Recital 29

(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. The competent authority should consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The full supervisory competences and responsibilities should remain with the competent authorities. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 960 #

Proposal for a regulation
Article 73 – paragraph 5

5. Where clients do not provide the information required pursuant to paragraph 4, or where crypto-asset service providers that are authorised to provide advice on crypto-assets consider, on the basis of the information received under paragraph 4, that the p~~rospective~~otential clients or clients have insufficient knowledge, crypto-asset service providers that are authorised to provide advice on crypto-assets shall inform those clients or p~~rospective~~otential clients that the crypto-assets or crypto-asset services may ~~be inappropriat~~not be suitable for them and issue them a warning on the risks associated with crypto-assets. That risk warning shall clearly state the risk of losing the entirety of the money invested or converted into crypto-assets. Clients shall expressly acknowledge that they have received and understood the warning issued by the crypto-asset service provider concerned.

Amendment 961 #

Aurore LALUCQ, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

(a) specify the clients’ ~~demands and need~~requirements and preferences;

Amendment 962 #

Proposal for a regulation
Article 73 – paragraph 7 – point a

(a) specify the clients’ ~~demands and need~~requirements and preferences;

Amendment 963 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 73 a (new)

Article 73a Suitability and appropriateness test 1. Crypto-asset service providers that are authorised to provide the services referred to in Articles 70 to 73 shall, before offering a service to a client or a prospective client, assess whether and which crypto-asset service offered is appropriate for the prospective client. 2. For the purposes of the assessment referred to in paragraph 1, crypto-asset service providers shall obtain information about the prospective client’s knowledge of, and experience in crypto-assets, objectives, risk tolerance, financial situation including the ability to bear losses, and a basic understanding of risks involved in purchasing crypto-assets. 3. Crypto-asset service providers shall review the assessment referred to in paragraph 1 for each client every year after the initial assessment made in accordance with that paragraph. 4. Where crypto-asset service providers that are authorised to provide the services referred to in Articles70 to 72 consider, on the basis of the information received under that paragraph, that the prospective clients have insufficient knowledge or experience or ability to bear losses, crypto-asset service providers shall inform those prospective clients that the services offered are inappropriate for them and issue them a risk warning. That risk warning shall clearly state the risk of losing the entirety of the money invested. Prospective clients shall expressly acknowledge that they have received and understood the warning issued by the crypto-asset service provider concerned. 5. ESMA shall, in close cooperation with EBA, develop draft regulatory technical standards to specify the arrangements necessary to: (a) carry out the assessment referred to in paragraph 1; (b) provide the information referred to in paragraphs 2. Such arrangements shall be not less stringent than the arrangements set out in Commission Delegated Regulation (EU)2017/565. ESMA shall submit those draft regulatory technical standards to the Commission by [please insert date 12 months after the entry into force of this Regulation]. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.]

Amendment 964 #

Proposal for a regulation
Article 74 – paragraph 1

1. Any natural or legal person or such persons acting in concert (the ‘proposed acquirer’), who have taken a decision either to acquire, directly or indirectly, a qualifying holding in a crypto-asset service provider or to further increase, directly or indirectly, such a qualifying holding in a crypto-asset service provider 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 crypto- asset service provider would become its subsidiary (the ‘proposed acquisition’), shall notify the competent authority of that crypto-asset service provider 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 75(4).

Amendment 965 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 74 – paragraph 2

2. Any natural or legal person who has taken a decision to dispose, directly or indirectly, of a qualifying holding in a crypto-asset service provider (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 crypto-asset service provider would cease to be that person’s subsidiary.

Amendment 966 #

Proposal for a regulation
Title VI

Prevention and Repression of Market Abuse involving crypto-assets

Amendment 967 #

Proposal for a regulation
Article 76 – paragraph 1 a (new)

When a person affected by market manipulation resides outside the Union but holds assets in one of the Member States, those assets may be seized as a precaution or as part of a judicial decision of the Member State concerned.

Amendment 968 #

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

Proposal for a regulation
Article 77 – paragraph 1

1. Issuers and offerers of crypto- assets shall inform the public as soon as possible of inside information which concerns them, in a manner that enables the public to access that information in an easy manner and to assess that information in a complete, correct and timely manner. Publication of such information on the blockchain shall be considered sufficient.

Amendment 969 #

Proposal for a regulation
Article 77 – paragraph 1

1. Issuers and offerors of crypto- assets shall inform the public as soon as possible of inside information which concerns them, in a manner that enables the public to access that information in an easy manner and to assess that information in a complete, correct and timely manner.

Amendment 97 #

Proposal for a regulation
Recital 29

(29) A competent authority should refuse authorisation where the prospective issuer of asset-referenced tokens’ business model may pose a serious threat to financial stability, monetary policy transmission and monetary sovereignty. The competent authority should consult the EBA and ESMA and, where the asset- referenced tokens is referencing Union currencies, the European Central Bank (ECB) and the national central bank of issue of such currencies before granting an authorisation or refusing an authorisation. The EBA, ESMA, and, where applicable, the ECB and the national central banks should provide the competent authority with a non-binding opinion on the prospective issuer’s application. 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. Where authorising a prospective issuer of asset- referenced tokens, the competent authority should also approve the crypto-asset white paper produced by that entity. The authorisation by the competent authority should be valid throughout the Union and should allow the issuer of asset-referenced tokens to offer such crypto-assets in the Single Market and to seek an admission to trading on a trading platform for crypto- assets. In the same way, the crypto-asset white paper should also be valid for the entire Union, without possibility for Member States to impose additional requirements.

Amendment 970 #

Proposal for a regulation
Article 77 – paragraph 1

1. Issuers and offerors of crypto- assets shall inform the public as soon as possible of inside information which concerns them, in a manner that enables the public to access that information in an easy manner and to assess that information in a complete, correct and timely manner.

Amendment 971 #

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

Proposal for a regulation
Article 77 – paragraph 1

1. Issuers and offerors of crypto- assets shall inform the public as soon as possible of inside information which concerns them, in a manner that enables the public to access that information in an easy manner and to assess that information in a complete, correct and timely manner.

Amendment 972 #

Proposal for a regulation
Article 77 – paragraph 1

1. Issuers and offerors of crypto- assets shall inform the public as soon as possible of inside information which concerns them, in a manner that enables the public to access that information in an easy manner and to assess that information in a complete, correct and timely manner.

Amendment 973 #

Proposal for a regulation
Article 77 – paragraph 2

2. Issuers of crypto-assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met: (a) immediate disclosure is likely to prejudice the legitimate interests of the issuers; (b) delay of disclosure is not likely to mislead the public; (c) the issuers are able to ensure the confidentiality of that information.deleted

Amendment 974 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 77 – paragraph 2

2. Issuers of crypto-assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met: (a) immediate disclosure is likely to prejudice the legitimate interests of the issuers; (b) delay of disclosure is not likely to mislead the public; (c) the issuers are able to ensure the confidentiality of that information.deleted

Amendment 975 #

Proposal for a regulation
Article 77 – paragraph 2

2. Issuers of crypto-assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met: (a) immediate disclosure is likely to prejudice the legitimate interests of the issuers; (b) delay of disclosure is not likely to mislead the public; (c) the issuers are able to ensure the confidentiality of that information.deleted

Amendment 976 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

2. Issuers and offerors of crypto- assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met:

Amendment 977 #

Proposal for a regulation
Article 77 – paragraph 2 – introductory part

2. Issuers and offerors of crypto- assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met:

Amendment 978 #

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

Proposal for a regulation
Article 77 – paragraph 2 – introductory part

2. Issuers and offerors of crypto- assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met:

Amendment 979 #

Eero HEINÄLUOMA, Victor NEGRESCU, Jonás FERNÁNDEZ, Pedro MARQUES

Proposal for a regulation
Article 77 – paragraph 2 – introductory part

2. Issuers and offerors of crypto- assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met:

Amendment 98 #

Proposal for a regulation
Recital 30

(30) To ensure consumer protection, issuers of asset-referenced tokens should always provide holders of asset-referenced tokens with clear, fair and not misleading information. The crypto-asset white paper on asset-referenced tokens should include information on the stabilisation mechanism, on the investment policy of the reserve assets, on the custody arrangements for the reserve assets, and on the rights provided to holders. Where the issuers of asset-referenced tokens do not offer a direct claim or redemption right on the reserve assets to all the holders of such asset-referenced tokens, the crypto-asset white paper related to asset-referenced tokens should contain a clear and unambiguous warning in this respect. Marketing communications of an issuer of asset-referenced tokens should also include the same statement, where the issuers do not offer such direct rights to all the holders of asset-referenced tokens.

Amendment 980 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 77 – paragraph 2 – introductory part

2. Issuers and offerors of crypto- assets may, on their own responsibility, delay disclosure to the public of inside information provided that all of the following conditions are met:

Amendment 981 #

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

Proposal for a regulation
Article 77 – paragraph 2 – point a

(a) immediate disclosure is likely to prejudice the legitimate interests of the issuers or offerors;

Amendment 982 #

Proposal for a regulation
Article 77 – paragraph 2 – point a

(a) immediate disclosure is likely to prejudice the legitimate interests of the issuers or the offerors, as applicable;

Amendment 983 #

Proposal for a regulation
Article 77 – paragraph 2 – point a

(a) immediate disclosure is likely to prejudice the legitimate interests of the issuers or offerors, as applicable;

Amendment 984 #

Proposal for a regulation
Article 77 – paragraph 2 – point a

(a) immediate disclosure is likely to prejudice the legitimate interests of the issuers or offerors;

Amendment 985 #

Antonio Maria RINALDI, Francesca DONATO, Valentino GRANT

Proposal for a regulation
Article 77 – paragraph 2 – point a

(a) immediate disclosure is likely to prejudice the legitimate interests of the issuers or offerors;

Amendment 986 #

Proposal for a regulation
Article 77 – paragraph 2 – point c

(c) the issuers or the offerors, as applicable, are able to ensure the confidentiality of that information.

Amendment 987 #

Proposal for a regulation
Article 77 – paragraph 2 – point c

(c) the issuers or offerors, as applicable are able to ensure the confidentiality of that information.

Amendment 988 #

Proposal for a regulation
Article 77 – paragraph 2 – point c

(c) the issuers or offerors are able to ensure the confidentiality of that information.

Amendment 989 #

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

Proposal for a regulation
Article 77 – paragraph 2 – point c

(c) the issuers or offerors are able to ensure the confidentiality of that information.

Amendment 99 #

Proposal for a regulation
Recital 30

(30) To ensure consumer protection, issuers of asset-referenced tokens should always provide holders of asset-referenced tokens with clear, fair and not misleading information. The crypto-asset white paper on asset-referenced tokens should include information on the stabilisation mechanism, on the investment policy of the reserve assets, on the custody arrangements for the reserve assets, and on the rights provided to holders. Where the issuers of asset-referenced tokens do not offer a direct claim or redemption right on the reserve assets to all the holders of such asset-referenced tokens, the crypto-asset white paper related to asset-referenced tokens should contain a clear and unambiguous warning in this respect. Marketing communications of an issuer of asset-referenced tokens should also include the same statement, where the issuers do not offer such direct rights to all the holders of asset-referenced tokens.

Amendment 990 #

Proposal for a regulation
Article 77 – paragraph 2 – point c

(c) the issuers or offerors are able to ensure the confidentiality of that information.

Amendment 991 #

Proposal for a regulation
Article 80 – paragraph 1 – point c

(c) disseminating information through the media, including the internet and social networks, or by any other means, which gives, or is likely to give, false or misleading signals as to the supply of, demand for, or price of a crypto- asset, or is likely to secure, the price of one or several crypto-assets, at an abnormal or artificial level, including the dissemination of rumours, where the person who made the dissemination knew, or ought to have known, that the information was false or misleading;

Amendment 992 #

Proposal for a regulation
Article 81 – paragraph 1

1. ~~Member States shall designate the compet~~ESMA shall be the single direct supervisor of all crypto-assets and asset- referenced tokens, except for e-money tokens, and all crypto-asset service providers in the Union. ESMA shall be responsible for carrying out the supervisory functions and duties provided for in this Regulation and ensuring compliance with the requirements a~~uthorities~~nd obligations laid down in this Regulation, in close cooperation with the EBA. EBA shall be the single direct supervisor of significant e-money tokens and asset- referenced tokens designated as ‘quasi-e- money tokens’. EBA shall be responsible for carrying out the supervisory functions and duties provided for in this Regulation and ~~shall inform the EBA and~~ensuring compliance with the requirements and obligations laid down in this Regulation, in close cooperation with the ESMA , the~~reof.~~ ECB, the ESCB and the national competent authorities.

Amendment 993 #

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

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

1. In order to fulfil their duties under Titles II, III, IV and V of this Regulation, ESMA, EBA and the national competent authorities shall have, in accordance with national law, at least the following supervisory and investigative powers:

Amendment 994 #

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

(a) to require crypto-asset service providers and the natural or legal persons that control them or are controlled by them, to provide information and documents; where there are reasonable grounds for believing that the information and documents provided are not in line with this Regulation, the competent authority may require crypto-asset service providers and the natural or legal persons who control them, or who are controlled by them, to amend the information and documents or to produce new ones, within one month of the request;

Amendment 995 #

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

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

(b) to require members of the management body of the crypto-asset service providers to provide information; where there are reasonable grounds for believing that the information provided is not in line with this Regulation, the competent authority may require the members of the management body of the crypto-asset service providers to amend the information and documents or to produce new ones, within one month of the request;

Amendment 996 #

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

(ja) make public the fact that an Investment ART is increasingly or regularly used as a means of payment.

Amendment 997 #

Proposal for a regulation
Article 82 – paragraph 1 – subparagraph 1 – point j b (new)

(jb) to prohibit all regulated entities the acceptance and any services related to investment ART, where they find that given Investment ART is regularly used as a means of payment.

Amendment 998 #

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

(l) to require ~~issue~~offerors of crypto-assets, including asset-referenced tokens and e- money tokens, or persons asking for admission to trading on a trading platform for crypto-assets, and the persons that control them or are controlled by them, to provide information and documents;

Amendment 999 #