The recent publications of the European Banking Authority (EBA) has recently issued several important publications aimed at enhancing the regulatory framework for banks. These include the proposed draft technical standards on the prudential treatment of crypto-assets exposures under the Capital Requirements Regulation (CRR3) and further guidance on the classification and reporting requirements for crypto-assets under the Markets in Crypto Assets Regulation (MiCAR). Additionally, the EBA released a technical package and a revised list of Implementing Technical Standards (ITS) validation rules as part of its reporting framework.
Prudential treatment of crypto-assets
EBA is seeking feedback, until April 08, 2025, on the proposed technical standards on prudential treatment of crypto-asset exposures under the CRR3. The standards outline specific requirements for the classification, measurement, and capital treatment of various types of crypto-assets, reflecting the unique risks they pose. The provisions consider the legal requirements introduced in MiCAR and specify, among others, the capital treatment of exposures to electronic money tokens (EMTs), asset reference tokens (ARTs), and unbacked crypto-assets such as Bitcoin. The draft standards further develop the relevant capital treatment for credit risk, counterparty credit risk, market risk, and credit valuation adjustment risk for ARTs and other crypto-assets exposures. They align, to the extent possible, with the Basel standard on prudential treatment of crypto-asset exposures. These draft standards also include all the relevant technical elements on the use of netting, aggregating of long and short positions, criteria to allow hedge recognition for other crypto-assets, and the underlying formulas relevant for calculating the exposure value of crypto-assets for the counterparty credit risk and market risk treatment.
Additionally, the three European Supervisory Authorities (EBA, EIOPA, and ESMA) have published joint guidelines to facilitate consistency in the regulatory classification of crypto-assets under MiCAR. The guidelines include a standardized test to promote a common approach to classification as well as templates market participants should use when communicating to supervisors the regulatory classification of a crypto-asset. The templates for explanations and legal opinions provide descriptions of the regulatory classification of crypto-assets in the cases of ARTs and crypto-assets that are not ARTs or EMTs under MiCAR.
Updates to reporting requirements
In addition to publishing the periodically revised list of ITS validation rules, the EBA has released a technical package under the reporting framework 4.0, which will apply from the first half of 2025. The EBA also issued further guidance on reporting requirements under MiCAR. The DPM Query Tool has been updated to reflect the current release and the draft technical package includes a version of the data dictionary contents in both formats the DPM 1.0 and the new format DPM 2.0. The technical package also includes updated templates, validation rules, and XBRL taxonomies that banks must use to support the following reporting obligations:
Reporting of information by issuers of ARTs and EMTs.
New ITS amending the supervisory reporting framework (COREP templates) to implement the most immediate changes driven by the EU Banking Package (CRR3 and Capital Requirements Directive -CRD6) published on June 19 in the Official Journal.
Minor amendments to reporting obligations by class 2 investment firms (COREP templates), in alignment with the CRR3/CRD6 changes.
Updated requirements for the registers of information under the Digital Operational Resilience Act (DORA) following the EC’s adoption of Regulation 2024/2956 with regard to standard templates for the register of information.
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