The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly released a consultation paper on Oct. 20 featuring two drafts. These drafts encompass the assessment of the suitability of management body members and shareholders or members holding qualifying stakes in issuers of asset-referenced tokens (ARTs) and crypto asset service providers (CASPs).
The proposed joint guidelines for evaluating the suitability of shareholders or members, whether direct or indirect, holding qualifying stakes in ART or CASP issuers offer regulatory bodies a shared approach for assessing their suitability. This includes granting authorization for ART and CASP issuance and conducting prudential assessments for potential acquisitions.