The EBA consults on draft technical standards on governance arrangements of the remuneration policy under the Markets in Crypto-Assets Regulation

EBA has initiated a public consultation on draft RTS for the governance arrangements of remuneration policies under MiCA. These draft RTS outline the necessary governance processes for adopting, implementing, and maintaining remuneration policies in the crypto-assets market.
The primary goal of these draft RTS is to ensure that remuneration policies encourage sound and effective risk management for issuers of significant ARTs and significant EMT. These policies should not create incentives to lower risk standards, instead promoting performance-related compensation, alignment with issuer risks, and long-term risk-taking behavior in line with the issuer’s risk appetite. The overarching aim is to protect token holders.
To ensure consistency across sectors, these RTS mirror the remuneration framework for investment firms, with the same regulatory objectives. This release is part of the MiCA policy products, and the third batch is expected to be published in November 2023.
These draft RTS have been developed in cooperation with ESMA, as mandated by MiCA. The requirements apply to issuers of significant ARTs and e-money institutions issuing significant EMTs. It can also extend to non-significant e-money institutions if required by the competent authority of their home Member State.
The consultation will run until 22 January 2024 and a virtual public hearing is scheduled for 11 January 2024.