> For the complete documentation index, see [llms.txt](https://www.mica.wtf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.mica.wtf/eu-level/q-and-a/pending-questions/eba-qa-7210-own-funds-art-issuers-exempt.md).

# Own funds for ART issuers exempt from authorisation

|                 |                                                                                                                                                                    |
| --------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Authority**   | EBA                                                                                                                                                                |
| **Q\&A ID**     | 2024\_7210                                                                                                                                                         |
| **Status**      | Rejected                                                                                                                                                           |
| **Legal basis** | [Article 35(1)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md) [MiCA](https://github.com/jakesenfti/micawtf/blob/main/mica/README.md) |
| **Source**      | [EBA Q\&A](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2024_7210)                                                                              |

### Question

What own [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) requirements apply to issuers of asset-referenced tokens that are exempt from the authorisation requirement pursuant to [Article 16(2)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-1/article-16.md) of [MiCAR](https://github.com/jakesenfti/micawtf/blob/main/mica/README.md)?

### Background

[Article 35(1)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md) of MiCAR sets out the own [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) requirements for authorised ART issuers (350,000 EUR or 2% of the average reserve assets amount, whichever is higher). Article 16(2) provides an exemption from the authorisation requirement in Article 16(1) for ARTs offered exclusively to [qualified investors](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/qualified-investors.md) or where the offer is below EUR 5 000 000.

The question arises because Article 35 by its terms applies to "issuers of asset-referenced tokens" without expressly distinguishing between authorised and exempt issuers. However, the own funds requirement is structured in the context of the authorisation framework (Chapters 1-3 of Title III of MiCAR), which may suggest that it does not apply to issuers exempt from authorisation.

*Submitted by: Industry participant*

***

### Rejection Reason

This question falls outside the scope of the Q\&A process. The applicable provisions of MiCAR (Articles 16 and 17(4)) already provide sufficient clarity on the relationship between the exemption from authorisation and the obligations that continue to apply. The question does not identify a genuine ambiguity in the text that requires interpretative guidance through the Q\&A process.

The submitter is invited to consult directly with their [competent authority](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/competent-authority.md) for any specific application of the rules to their particular circumstances.

***

**Source:** [EBA Single Rulebook Q\&A](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2024_7210)

### Related

* [competent authority](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/competent-authority.md) — defined term used on this page
* [qualified investors](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/qualified-investors.md) — defined term used on this page
* [qualified investors](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mifid-ii/qualified-investors.md) — defined term used on this page
* [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) — defined term used on this page
* [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/psd2/funds.md) — defined term used on this page
* [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/tofr/funds.md) — defined term used on this page


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://www.mica.wtf/eu-level/q-and-a/pending-questions/eba-qa-7210-own-funds-art-issuers-exempt.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.