Ahead of the European MiCA bill coming into force, local regulators have outlined a set of criteria for assessing the competence of shareholders and members of the governing bodies of crypto-asset service provider (CASP) companies.
Analysts at the European Banking Association (EBA) and the European Securities and Markets Authority (ESMA) have published a consultative document proposing a common approach for assessing large digital asset owners involved in crypto project management.
As part of the initiative, analysts have suggested evaluating members of management bodies in cryptocurrency companies based on the following standardized criteria:
- knowledge of crypto methodology and mechanisms;
- experience in working with digital assets;
- honesty and absence of compromising incidents in the past;
- ability to commit sufficient time to fulfill their duties.
Regulators argue that timely verification of authorizations to issue asset referenced tokens (ART) or CASP licenses can increase user trust. Moreover, constant evaluation of possible transactions minimizes the potential risks associated with digital assets. Additionally, the proposed guidelines aim to reduce potential divergence in the application of rules and arbitration.
The suggested rules require the approval of the European Parliament in order to formally enter into force. The consultation period will last until January 22, 2024. Then, the document will be submitted to the European Commission.
The ESMA previously held a public consultation on several aspects of the MiCA bill, which is due to come into force next year. CoinsPaid invites everyone to discuss the upcoming changes at an exclusive conference in Tallinn.
