EBA and ESMA consult on two sets of joint guidelines under MiCA

EBA and ESMA have jointly published a Consultation Paper on two sets of draft guidelines under MiCA. These guidelines are related to the suitability assessment of members of the management body and shareholders/members with qualifying holdings in issuers of ARTs and CASPs.
The purpose of these guidelines is to provide clarity and harmonization in assessing the suitability of management body members, shareholders, and members with qualifying holdings, helping to reduce the risk of inconsistent application of the rules in different jurisdictions. The guidelines specify the requirements from Articles 42 and 84 MiCA concerning the reputation of the proposed acquirer; the suitability of the members of the persons who will direct the business of the target issuer of ARTs or of the CASP as a result of the acquisition; the financial soundness of the proposed acquirer; the ability of the target issuer of ARTs or CASP to comply or continue to comply with the applicable prudential requirements; and the absence of suspicion of risk of ML/TF arising from the acquisition.
The guidelines aim to ensure the integrity of the market for crypto assets and related services, promoting trust by assessing the suitability of management body members and those with qualifying holdings. They provide common criteria for assessing knowledge, skills, experience, good repute, honesty, integrity, and time commitment of members of the management body. Additionally, they establish a methodology for assessing shareholders or members with qualifying holdings, both for the authorization of ART issuers and CASPs, and for prudential assessments of proposed acquisitions.
The consultation will run until 22 January 2024 and a virtual public hearing is scheduled for 11 January 2024.