> 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/technical-standards/final-reports/rts-on-the-procedure-and-timeframe-to-adjust-own-funds-requirements-for-significant-issuers.md). # EBA/RTS/2024 — Own Funds Adjustment | | | | -------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Authority** | EBA | | **Reference** | EBA/RTS/2024 | | **Mandate(s)** | [Article 45](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) MiCA | | **Status** | Pending Commission adoption | | **Source** | [EBA](https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/asset-referenced-and-e-money-tokens-micar/regulatory-technical-standards-procedure-and-timeframe-adjust-own-funds-requirements-significant) | ## What this document covers These RTS set the procedure and timeframe for significant issuers to meet increased own-funds requirements. They operationalise the MiCA requirement for significant ART and EMT issuers to hold additional own funds following significance classification. ## Key provisions / requirements * Specifies the procedure and timeframe for significant issuers to adjust own funds to MiCA’s higher requirement. * Applies when ARTs or EMTs are classified as significant. * Addresses supervisory communication and implementation periods for own-funds increases. * Requires issuers to take measures enabling timely compliance. * Connects significance classification with enhanced prudential safeguards. * Complements the broader RTS on own-funds adjustments and stress testing. ## Relevant MiCA articles [Article 45](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) - Requires significant issuers to adjust own funds under enhanced prudential requirements. ## Source * [EBA page](https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/asset-referenced-and-e-money-tokens-micar/regulatory-technical-standards-procedure-and-timeframe-adjust-own-funds-requirements-significant) ## COMMISSION DELEGATED REGULATION (EU) …/… of XXX supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards specifying the procedure and timeframe for an issuer to adjust the amount of its own funds to 3% of the average amount of the reserve of assets (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) 2023/1114 of the European Parliament and of the Council on Markets in Crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and Directive (EU) 2019/1937[^1], and in particular Article 45(7), fourth subparagraph, thereof, ### Whereas: 1. Considering that requirements set out in [Articles 35](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md), points (2), (3) and (5) and [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of Regulation (EU) 2023/1114 also apply to issuers of e-money tokens (either significant or, where decided, non-significant), as per [Articles 58(1)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-2/article-58.md), point (b), and (2) of that Regulation, and that requirement in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of that Regulation may also apply to issuers of non-significant asset-referenced tokens as per [Article 35(4)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md) of that Regulation, provisions specifying such requirements should also apply to the relevant issuers that are subject to or may be required to comply with those requirements. 2. Issuers of asset-referenced tokens or e-money institutions issuing e-money tokens once classified as significant or, where applicable, in accordance with [Article 58(2)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-2/article-58.md) of Regulation (EU) 2023/1114, should elaborate a plan to adjust the level of own funds to the required level within the timeframe required. Those should discuss and agree the feasibility of such plan with the relevant competent authorities. Implementation of such plan should be closely monitored by competent authorities and, for that purpose, the relevant issuers should notify to the competent authority steps taken, including a final notification of the adjustment completion. 3. Competent authorities are well suited to determine the timeframe to adjust their own funds for issuers of a significant asset-referenced tokens or e-money tokens that becomes subject to the requirement set out in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of Regulation (EU) 2023/1114. Such timeframe should have a maximum deadline and, in principle, be as short as possible and based on a case-by-case assessment and determined after a dialogue with that issuer, having regard to the potential impact on the said issuer, its specificities and risks to the financial stability of the wider financial system. 4. This Regulation is based on the draft regulatory technical standards submitted to the Commission by the European Banking Authority. 5. The European Banking Authority has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council, ### HAS ADOPTED THIS REGULATION: ### Article 1 — Procedure 1. Within 25 working days from the notification to the issuer of the classification as significant of the relevant asset-referenced tokens or to the e-money institution issuing e-money tokens, referred to either in [Article 43(6)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-43.md), or [Article 44(3)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-44.md) or [Article 56(4)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-2/article-56.md) of Regulation (EU) 2023/1114, or from the notification of the need to comply with the requirement in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of that Regulation to the relevant issuer of nonsignificant asset-referenced or e-money tokens, as per [Articles 35(4)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md) or [58(2)](/mica/title-iv-e-money-tokens-art.-48-48/chapter-2/article-58.md) of that Regulation, the competent authority shall, after a dialogue with such issuer, notify the timeframe within which it shall adjust its own funds to meet the requirements in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of that Regulation. 2. Within 25 working days from receipt of the notification on the timeframe referred to in paragraph 1, the relevant issuer shall submit to the competent authority a detailed plan on how its own funds will be adjusted to meet the requirements in Article 45(5) of Regulation (EU) (EU) 2023/1114. 3. The plan referred to in paragraph 2 shall: * (a) include time-bound steps and procedures to carry out the own funds' adjustment within the timeframe set in article 2; and * (b) ensure that the own funds items and instruments that will be used to comply with the increased, adjusted requirement fulfil entirely the conditions set out in [Article 35](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-2/article-35.md), paragraph 2, of Regulation (EU) 2023/1114. 4. The relevant issuer shall inform the competent authority immediately and in writing in case any step or procedure of the plan in paragraph 2 cannot be achieved in a timely manner. In such a case, the said issuer shall submit to the competent authority an update of the plan, including alternative steps or procedures that allow the issuer to adjust its own funds in the set timeframe. 5. The competent authority shall closely monitor the implementation of the plan in paragraph 2. 6. The relevant issuer shall inform the competent authority of the completion of the steps provided in the plan, including a final notification to the competent authority when the required own funds adjustment has been completed, within a maximum of 20 workings days as from the completion. ### Article 2 — Timeframe 1. When an issuer of significant asset-referenced tokens or an e-money institution that issues significant e-money tokens or, where applicable, that issue non-significant asset-referenced or e-money tokens, are required to comply with the requirements set out in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of Regulation (EU) 2023/1114, the relevant issuer of such tokens shall adjust its own funds to meet the requirements in [Article 45(5)](/mica/title-iii-asset-referenced-tokens-art.-16-47/chapter-5/article-45.md) of that Regulation within the timeframe set by the competent authority in Article 1(1). 2. In setting the timeframe referred to in Article 1(1), the competent authority shall not grant more than 6 months as from the notification referred to in paragraph 1 of Article 1 to the relevant issuer to adjust its own funds, having regard to the potential impact on the relevant issuer, its specificities and risks to the financial stability of the wider financial system. ### Article 3 — Entry into force This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. (EBA website source: ) [^1]: Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/193 (OJ L 150, 9.6.2023, p. 40). --- # Agent Instructions This documentation is published with GitBook. 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