Gold tokens as ARTs
Q&A on Gold tokens as ARTs.
Question
Are crypto-assets that are backed by, or referenced to, gold classified as asset-referenced tokens (ARTs) within the meaning of Article 3(1)(6) of MiCAR?
Background
Article 3(1)(6) of MiCAR defines an asset-referenced token as "a type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies".
Gold is a commodity and a recognised store of value. Tokens backed by physical gold or gold price references are widely available in the market. The question arises whether such tokens:
(a) fall within the ART definition since gold is a recognised asset whose value is referenced; (b) fall outside the ART definition because gold is a commodity rather than an "official currency" or other financial instrument; or (c) require further analysis depending on whether the token "purports to maintain a stable value" by referencing gold.
Submitted by: Industry participant
Rejection Reason
This question falls outside the remit of the Q&A process. The classification of a specific crypto-asset as an ART under MiCAR requires a case-by-case assessment of the specific features of the token concerned, which is a supervisory determination that cannot be made through the Q&A process.
Competent authorities and issuers seeking guidance on the classification of specific gold-backed tokens should consult with their home NCA. General guidance on classification of crypto-assets is also addressed in EBA and ESMA guidelines on the classification of crypto-assets.
Source: EBA Single Rulebook Q&A
Related
asset-referenced token — defined term used on this page
electronic money token — defined term used on this page
financial instrument — defined term used on this page
financial instrument — defined term used on this page
official currency — defined term used on this page
electronic money — defined term used on this page
electronic money — defined term used on this page
crypto-asset — defined term used on this page
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