1. PAYMENTS
1.1. European Parliament's ECON adopts reports on proposed PSD3 and PSR
On 14 February 2024, the European Parliament's Economic and Monetary Affairs Committee (ECON) issued a press release to announce that it had adopted its position at first reading on the European Commission's proposals for a Regulation on payment services in the internal market (PSR) and for a Directive on payment services and electronic money services in the internal market (PSD3).
The European Parliament is expected to vote on the ECON position during its first plenary session in April 2024. Negotiations between European Parliament and the Council of the European Union (EU) on the proposals will then occur after the Parliamentary elections.
ECON's press release summarises the focus of PSR and PSD3 as follows:
- Protection for payment service users from fraud and misuse of data;
- Transparency of fees and charges for payment services;
- Creating a level playing field between banks and non-bank payment service providers; and
- Provisions to improve access to cash, especially in remote or rural areas.
A copy of ECON's report on PSR can be accessed here.
A copy of ECON's report on PSD3 can be accessed here.
A copy of ECON's press release can be accessed here.
For more information on the PSR and PSD3 proposals more generally, please refer to our Q2 2023 QLU which can be accessed here.
2. DIGITAL FINANCE & CRYPTO-ASSETS
2.1 ESMA publishes further consultations on draft guidelines under MiCA
On 29 January 2024, the European Securities and Markets Authority (ESMA) published the following consultation papers (together, the Draft Guidelines) which set out draft guidelines on the Regulation (EU) 2023/1114 (the Markets in Crypto Assets Regulation or MiCA).
- Consultation paper on draft guidelines on the
conditions and criteria for the qualification of crypto-assets as
financial instruments
ESMA's draft guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments under MiCA aim to provide clarity to national competent authorities (NCAs) and market participants on the delineation between the respective scopes of the application of MiCA and the MiFID II Directive 1 .
- Consultation paper on draft guidelines on reverse
solicitation under MiCA
ESMA's draft guidelines on reverse solicitation under MiCA aim to provide clarity to NCAs and market participants, particularly third country firms, on the limited situations where the offer or provision of crypto-asset services to clients established or situated in the EU will be regarded as initiated at the own exclusive initiative of the relevant clients.
The consultations on the Draft Guidelines close on 29 April 2024 and responses can be submitted here.
2.2 ESMA updates Q&As on MiCA
On 2 February 2024, ESMA published a press release to announce that it had updated its Questions and Answers (Q&A) document on MiCA, with updates made in relation to the following topics:
- New CASPs established before (and after) 30 December 2024;
- Passporting rights for entities benefiting from grandfathering;
- Prohibition of monetary and non-monetary benefits;
- Provision of crypto-asset services by credit institutions; and
- Notifications under Article 60.
A copy of ESMA's press release on new Q&As available can be accessed here.
The updated Q&A can be accessed in the ESMA Q&A IT-tool which can be accessed here.
2.3 European Commission adopts four delegated regulations under MiCA
On 22 February 2024, the European Commission published four delegated regulations (Delegated Regulations) which supplement MiCA, as follows:
- Commission Delegated Regulation (C(2024)897) specifying the
fees charged by the European Baking Authority
(EBA) to issuers of significant asset-referenced
tokens (ARTs) and issuers of significant e-money
tokens (EMTs)
The text of this Delegated Regulation can be accessed here.
- Commission Delegated Regulation (C(2024)898) specifying the
procedural rules for the exercise of the power to impose fines or
periodic penalty payments by the EBA on issuers of significant ARTs
and issuers of significant EMTs
The text of this Delegated Regulation can be accessed here.
- Commission Delegated Regulation (C(2024)906) specifying certain
criteria for classifying ARTs and EMTs as significant
The text of this Delegated Regulation can be accessed here.
- Commission Delegated Regulation (C(2024)907) specifying the
criteria and factors to be taken into account by ESMA, the EBA and
competent authorities in relation to their intervention
powers
The text of this Delegated Regulation can be accessed here.
The Council of the EU and the European Parliament will now scrutinise the Delegated Regulations before they will be published in the Official Journal of the EU (OJ).
2.4 EBA publishes consultation paper on guidelines on redemption plans under MiCA
On 8 March 2024, the EBA published a consultation paper (EBA/CP/2024/09) on draft guidelines on redemption plans under Articles 47 and 55 of MiCA.
The draft guidelines set out proposed guidance for issuers of asset-referenced tokens (ARTs) and issuers of e-money tokens (EMTs) when drafting their redemption plans. Issuers of ARTs and EMTs are required to develop a redemption plan to ensure the orderly redemption of the tokens when a competent authority assesses that the issuer is unable or likely to be unable to fulfil its obligations.
The public consultation is open until 10 June 2024. Responses to the consultation can be submitted here.
MiCA will become applicable for issuers of ARTs and EMTs on 30 June 2024.
The consultation paper can be accessed here.
Footnote
1. Directive (EU) 2014/65
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