Annex VI | Springlex

LIST OF INFRINGEMENTS OF PROVISIONS REFERRED TO IN TITLE IV IN CONJUNCTION WITH TITLE III FOR ISSUERS OF SIGNIFICANT E-MONEY TOKENS

The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 22(1) by not reporting, for each significant e-money token denominated in a currency that is not an official currencymeans an official currency of a country that is issued by a central bank or other monetary authority; of a Member State with an issue value that is higher than EUR100 000 000, on a quarterly basis to EBA, the information referred to in the first subparagraph, points (a) to (d), of that paragraph.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 23(1) by not stopping issuing a significant e-money token denominated in a currency that is not an official currencymeans an official currency of a country that is issued by a central bank or other monetary authority; of a Member State upon reaching the thresholds provided for in that paragraph or by not submitting a plan to EBA within 40 working days of reaching those thresholds to ensure that the estimated quarterly average number and average aggregate value of the transactions per day are kept below those thresholds.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 23(4) by not complying with the modifications of the plan referred to in paragraph 1, point (b), of that Article as required by EBA.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 35(2) of this Regulation where its own fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; do not consist of the Common Equity Tier 1 items and instruments referred to in Articles 26 to 30 of Regulation (EU) No 575/2013 after the deductions in full, pursuant to Article 36 of that Regulation, without the application of threshold exemptions referred to in Article 46(4) and Article 48 of that Regulation.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 35(3) by not complying with the requirement of EBA to hold a higher amount of own fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;, following the assessment made in accordance with points (a) to (g) of that paragraph.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 35(5) by not conducting, on a regular basis, stress testing that takes into account severe but plausible financial stress scenarios, such as interest rate shocks, and non-financial stress scenarios, such as operational risk.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 35(5) by not complying with the requirement of EBA to hold a higher amount of own fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; based on the outcome of the stress testing.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(1) by not constituting and, at all times, maintaining a reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(1) by not ensuring that the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is composed and managed in such a way that the risks associated to the official currencymeans an official currency of a country that is issued by a central bank or other monetary authority; referenced by the significant e-money token are covered.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(1) by not ensuring that the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is composed and managed in such a way that the liquidity risks associated to the permanent rights of redemption of the holders are addressed.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(3) by not ensuring that the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is operationally segregated from the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets;’s estate, and from the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; of other e-money tokens.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(6) where its management bodymeans the body or bodies of an issuer, offeror or person seeking admission to trading, or of a crypto-asset service provider, which are appointed in accordance with national law, which are empowered to set the entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making in the entity and include the persons who effectively direct the business of the entity; does not ensure effective and prudent management of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(6) by not ensuring that the issuance and redemption of the significant e-money token is always matched by a corresponding increase or decrease in the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(7) by not determining the aggregate value of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; by using market prices, and by not having its aggregate value always at least equal to the aggregate value of the claims against the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; from the holders of the significant e-money token in circulation.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(8) by not having a clear and detailed policy describing the stabilisation mechanism of the significant e-money token that meets the conditions set out in points (a) to (g) of that paragraph.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(9) by not mandating an independent audit of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; every six months after the date of the offer to the publicmeans a communication to persons in any form, and by any means, presenting sufficient information on the terms of the offer and the crypto-assets to be offered so as to enable prospective holders to decide whether to purchase those crypto-assets; or admission to trading.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 36(10) by not notifying to EBA the result of the audit in accordance with that paragraph or by not publishing the result of the audit within two weeks of the date of notification to EBA.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(1) by not establishing, maintaining or implementing custody policies, procedures and contractual arrangements that ensure at all times that the conditions listed in the first subparagraph, points (a) to (e), of that paragraph are met.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(2) by not having, when issuing two or more significant e-money tokens, a custody policy in place for each pool of reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(3) by not ensuring that the reserve assets are held in custody by a crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; providing custody and administration of crypto-assets on behalf of clientsmeans the safekeeping or controlling, on behalf of clients, of crypto-assets or of the means of access to such crypto-assets, where applicable in the form of private cryptographic keys;, a credit institutionmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; or an investment firmmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; by no later than five working days after the date of issuance of the significant e-money token.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(4) by not exercising all due skill, care and diligence in the selection, appointment and review of crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; and investment firmsmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; appointed as custodians of the reserve assets or by not ensuring that the custodian is a legal person different from the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(4) by not ensuring that the crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; and investment firmsmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; appointed as custodians of the reserve assets have the necessary expertise and market reputation to act as custodians of such reserve assets.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(4) by not ensuring in the contractual arrangements with the custodians that the reserve assets held in custody are protected against claims of the custodians’ creditors.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(5) by not setting out in the custody policies and procedures the selection criteria for the appointment of crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; or investment firmsmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; as custodians of the reserve assets or by not setting out the procedure for reviewing such appointment.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(5) by not reviewing the appointment of crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; or investment firmsmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; as custodians of the reserve assets on a regular basis, and by not evaluating its exposures to such custodians, or by not monitoring the financial conditions of such custodians on an ongoing basis.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(6) by not ensuring that the custody of the reserve assets is carried out in accordance with the first subparagraph, points (a) to (d), of that paragraph.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 37(7) by not having the appointment of a crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, credit institutionmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; or investment firmmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; as custodian of the reserve assets evidenced by a contractual arrangement, or by not regulating, by means of such a contractual arrangement, the flow of information necessary to enable the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of the significant e-money token, the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, the credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; and the investment firmmeans an investment firm as defined in Article 4(1), point (2), of Regulation (EU) No 575/2013 and authorised under Directive 2014/65/EU; to perform their functions as custodians.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 38(1) by investing the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; in any products that are not highly liquid financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU; with minimal market risk, credit risk and concentration risks or where such investments cannot be liquidated rapidly with minimal adverse price effect.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 38(3) by not holding in custody in accordance with Article 37 the financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU; in which the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is invested.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 38(4) by not bearing all profits and losses and any counterparty or operational risks that result from the investment of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer;.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(1) by not adopting, implementing and maintaining a remuneration policy that promotes the sound and effective risk management of issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of significant e-money tokens and that does not create incentives to relax risk standards.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(2) by not ensuring that its significant e-money token can be held in custody by different crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; authorised for providing custody and administration of crypto-assets on behalf of clientsmeans the safekeeping or controlling, on behalf of clients, of crypto-assets or of the means of access to such crypto-assets, where applicable in the form of private cryptographic keys; on a fair, reasonable and non-discriminatory basis.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(3) by not assessing or monitoring the liquidity needs to meet requests for redemption of the significant e-money token by its holders.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(3) by not establishing, maintaining or implementing a liquidity management policy and procedures or by not ensuring, with those policy and procedures, that the reserve assets have a resilient liquidity profile that enables the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of the significant e-money token to continue operating normally, including under liquidity stressed scenarios.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(4) by not conducting, on a regular basis, liquidity stress testing or by not strengthening the liquidity requirements where requested by EBA based on the outcome of such tests.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 45(5) by not complying, at all times, with the own fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; requirement.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 46(1) by not drawing up and maintaining a recovery plan providing for measures to be taken by the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of significant e-money tokens to restore compliance with the requirements applicable to the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; in cases where the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; fails to comply with those requirements, including the preservation of its services related to the significant e-money token, the timely recovery of operations and the fulfilment of the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets;’s obligations in the case of events that pose a significant risk of disrupting operations.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 46(1) by not drawing up and maintaining a recovery plan that includes appropriate conditions and procedures to ensure the timely implementation of recovery actions as well as a wide range of recovery options, as listed in the third subparagraph, points (a), (b) and (c), of that paragraph.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 46(2) by not notifying the recovery plan to EBA and, where applicable, to its resolution and prudential supervisory authorities, within six months of the date of the offer to the publicmeans a communication to persons in any form, and by any means, presenting sufficient information on the terms of the offer and the crypto-assets to be offered so as to enable prospective holders to decide whether to purchase those crypto-assets; or admission to trading.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 46(2) by not regularly reviewing or updating the recovery plan.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(1) by not drawing up and maintaining an operational plan that supports the orderly redemption of each significant e-money token.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(2) by not having a redemption plan that demonstrates the ability of the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of the significant e-money token to carry out the redemption of the outstanding significant e-money token issued without causing undue economic harm to its holders or to the stability of the markets of the reserve assets.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(2) by not having a redemption plan that includes contractual arrangements, procedures or systems, including the designation of a temporary administrator, to ensure the equitable treatment of all holders of the significant e-money token and to ensure that holders of the significant e-money token are paid in a timely manner with the proceeds from the sale of the remaining reserve assets.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(2) by not having a redemption plan that ensures the continuity of any critical activities that are necessary for the orderly redemption and that are performed by the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; or by any third-party entities.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(3) by not notifying the redemption plan to EBA within six months of the date of the offer to the publicmeans a communication to persons in any form, and by any means, presenting sufficient information on the terms of the offer and the crypto-assets to be offered so as to enable prospective holders to decide whether to purchase those crypto-assets; or admission to trading.
The issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; infringes Article 47(3) by not regularly reviewing or updating the redemption plan.