Summary: EBA’s Guiding Principles on Timely Preparatory Steps Towards the Application of the MiCAR to ARTs and EMTs

In this Article

Dr Jane Nweike

How to apply the MiCAR to asset-referenced tokens (ARTs) and Electronic Money Tokens (EMTs)?  Well, Dr Jane Nweike conveniently provides some background about this! Specifically, the EBA’s Guiding Principles on Timely Preparatory Steps Towards the Application of the MiCA Regulation to ARTs and EMTs. In addition, a summary of the guidelines are also provided! Get to know better the MiCAR and how it affects Stablecoin issuers by reading below.

Furthermore, you can request a free consultation for your business on

Background: MiCAR


The Markets in Crypto Assets Regulation (MiCAR) came into force on June 29, 2023. Moreover, the MiCAR regulates the crypto industry in the entire EU. This includes the activities of CASPs, VASPs, and the issuance of various crypto-assets, including asset-referenced tokens (ARTs) and Electronic Money Tokens (EMTs), popularly called Stablecoins.

Although the MiCAR entered into force on June 29, 2023, the provisions relating to ARTs do not become effective until June 30, 2024. Thus, to offer guidance to existing and intending issuers of ARTs, and to aid their transition to the MiCAR regime when it becomes effective, the European Banking Authority (EBA) has issued a statement setting out guiding principles on various matters, including disclosures to token holders, business models, and governance structures among others. In general, the guiding principles encourage issuers of ARTs and EMTs to comply with the MiCAR’s requirements.

The guiding principles are non-binding. Sequentially, they do not supersede the national laws of EU jurisdictions that have already enacted laws that regulate ARTs issued in those jurisdictions. Such national laws will continue to be effective until the MiCAR provisions on ARTs come into force.

Guiding Principles

EBA: Micar Guiding Principles summarised below

Principle 1: Disclosures to potential acquirers and holders of ARTs and EMTs.

Entities carrying out or intending to carry out ART/EMT activities are encouraged to comply with the disclosure standards in the MiCAR. Furthermore, there are to ensure that all communications comply with MiCAR the requirements. This includes all comms with customers, including white-papers and marketing material. Marketing material is expected to be clear, fair and not misleading. In addition, issuers are encouraged to treat token holders equally. That is to say: to have a complaints handling procedure that ensures the fair, prompt and effective handling of complaints.

Principle 2: Well-defined business model.

Businesses carrying out or intending to carry out ART/EMT activities are encouraged to have a well-defined business model that sufficiently describes the sustainability and viability of the project under stress, sources of revenue, and distribution model for the tokens. The business model should also clearly set out how the ART/EMT activities matched the overall risk profile of the business.

EBA: Micar Guiding Principles

Principle 3: sound governance and effective risk management.

Businesses carrying out or intending to carry out ART/EMT activities are encouraged to have: – a clear organisational structure; – a management body comprising individuals of good repute with sufficient knowledge and skill to perform their duties; – In place, measures to adequately monitor, manage and report risks; – In place, policies and procedures the reserve of assets, various risks to which the organisation may be exposed, internal control mechanisms, and conflicts of interest.

Principle 4: Robust reserve, recovery and redemption arrangements.

Businesses carrying out or intending to carry out ART/EMT activities are encouraged to maintain a reserve of assets and sufficient own funds in alignment with the requirements of the MiCAR, confer of ART-holders a redemption right against the issuer, and to establish and maintain redemption plans. Credit institutions issuing EMTs are expected to continue to comply with all EU regulations that apply to their operations. Interest is not to be granted to holders of ARTs or EMTs.

Principle 5: communication to the competent authority of intention to offer ARTs and EMTs to the public.

Businesses carrying out or intending to carry out ART/EMT activities are encouraged to promptly communicate to the national competent authority information about the token.

How Can We Help?


If you are an already existing Stablecoin issuer in the EU, our experienced team can help you to review your business model and policy documents to ascertain that they are in line with the EBA’s guiding principles/MiCAR. Where necessary we will revise or create these documents to ensure compliance with the MiCAR

If you are looking to set up a new ART/EMT business, we can assist you with incorporating the entity. This includes liaising with the Malta Financial Services Authority (MFSA) for the issuance of a licence, preparing all the necessary policy and procedures, and ensuring that your operations are MiCAR-compliant from the start. Give us a shout on for a free consultation!

Key Contact

Jane Chinwe Nweike

International Lawyer

More about MK Fintech Partners Ltd.

Michael Kyprianou Fintech Partners Ltd. is a Maltese company providing services in the FinTech sector. It comprises a team of dedicated experts who provide services such as Legal Advisory, Crypto Licensing, Token Issuers’ Licensing, Investment Services Licensing, and registrations of activities related to Fintech, Crypto, Blockchain & Data Protection, Investment Funds Services & Banking, Company Incorporations, and M&As.

MK Fintech Partners forms part of the Michael Kyprianou Group, a top tier international legal and advisory firm. It has established an enviable reputation as a broad-based legal practice over the years. Mainly by keeping at heart its principle to always exceed its clients’ expectations. MK has grown to become one of the largest law firms in Cyprus with offices in Nicosia, Limassol and Paphos. The MK Group’s international presence also includes fully-fledged offices in Greece (Athens and Thessaloniki), Malta (Birkirkara), Ukraine (Kiev), the United Arab Emirates (Dubai), United Kingdom (London), Israel (Tel Aviv), and Germany (Frankfurt).

The content of this article is valid as at the date of its first publication. It intendeds to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on a specific matter before acting on any information provided. For further information, contact us at MK Fintech Partners via email at or by telephone +356 2016 1010.

Share this article: