The guidelines aim to ensure the consistent application of MiCA across the EU, including a standardised classification of cryptoassets.

By Axel Schiemann, Lasse Winzer, Thomas Vogel, Stuart Davis, and Gabriel Lakeman

On 10 December 2024, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA) (together, ESAs) have published new joint guidelines on explanations and opinions, and the standardised test for cryptoassets, under Article 97(1) of Regulation (EU) 2023/1114 on the Markets in Crypto-Assets Regulation (MiCA).

Article 97(1) of MiCA mandated the ESAs to jointly issue guidelines by 30 December 2024 that specify the content and form of the explanation accompanying the cryptoasset white paper referred to in Article 8(4), and the legal opinions on the qualification of ARTs as per Article 17(1), point (b)(ii), and Article 18(2), point (e) of MiCA.

Standardised Tests and Templates

The guidelines introduce a standardised test designed to promote a common approach to the classification of cryptoassets. Additionally, they provide templates to assist market participants in communicating the regulatory classification of a cryptoasset to the national competent authorities. These templates are particularly useful for drafting explanations and legal opinions that clarify the classification of cryptoassets.

Classification of ARTs and Other Cryptoassets

For asset-referenced tokens (ARTs), the guidelines require the white paper for the issuance of ARTs to be accompanied by a legal opinion. This opinion must explain the classification of the cryptoasset, specifically stating that it is neither an electronic money token (EMT) nor a cryptoasset excluded from the scope of MiCA. For cryptoassets that are neither ARTs nor EMTs, the white paper must include an explanation of the classification, clarifying that it is not an EMT, an ART, or a cryptoasset excluded from MiCA’s scope.

Main Objective of the Guidelines

The overarching aim of the guidelines is to promote convergence in classification to ensure the consistent application of MiCA across the EU. This approach is intended to enhance consumer and investor protection, secure a level playing field, and mitigate risks of regulatory arbitrage. The guidelines will be translated into the official EU languages and published on the ESAs’ websites, becoming effective three months after the publication of the translations.

Looking Forward

MiCA has regulated ARTs and EMTs since 30 June 2024. From 31 December 2024, the remaining provisions on cryptoassets and cryptoasset service providers apply. The new guidelines mark an important step towards a coherent and transparent regulatory framework for cryptoassets in Europe.

For an overview of the MiCA delegated acts, technical standards, and guidelines, see our Markets in Crypto-Assets Regulation Tracker.