Art. 38 Investment of the reserve of assets | MiCA regulation | MiCA

1. Issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of asset-referenced tokensmeans 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; that invest a part of the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; shall only invest those assets in 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 risk. The investments shall be capable of being liquidated rapidly with minimal adverse price effect.
1. Units in an undertaking for collective investment in transferable securities (UCITS) shall be deemed to be assets with minimal market risk, credit risk and concentration risk for the purposes of paragraph 1, where that UCITS invests solely in assets as further specified by EBA in accordance with paragraph 5 and where the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of the asset-referenced tokenmeans 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; ensures that the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; is invested in such a way that the concentration risk is minimised.
1. 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 shall be held in custody in accordance with Article 37.
1. All profits or losses, including fluctuations in the value of the financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU; referred to in paragraph 1, 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; shall be borne by the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; of the asset-referenced tokenmeans 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;.
1. EBA, in cooperation with ESMA and the ECB, shall develop draft regulatory technical standards specifying the financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU; that can be considered highly liquid and bearing minimal market risk, credit risk and concentration risk as referred to in paragraph 1. When specifying those financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU;, EBA shall take into account:
  1. the various types of assets that can be referenced by an asset-referenced tokenmeans 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;;
  2. the correlation between the assets referenced by the asset-referenced tokenmeans 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; and the highly liquid financial instrumentsmeans financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU; that the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; might invest in;
  3. the liquidity coverage requirement as referred to in Article 412 of Regulation (EU) No 575/2013 and as further specified in Commission Delegated Regulation (EU) 2015/61(⁴¹)Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions (OJ L 11, 17.1.2015, p. 1).;
  4. constraints on concentration preventing the issuermeans a natural or legal person, or other undertaking, who issues crypto-assets; from:
    
    investing more than a certain percentage of reserve assets in 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 risk issued by a single entity;
    
    holding in custody more than a certain percentage of crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; or assets with 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; or 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; which belong to the same group, as defined in Article 2, point (11), of Directive 2013/34/EU of the European Parliament and of the Council(⁴²)Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19)., 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;.
2. For the purposes of point (d)(i) of the first subparagraph, EBA shall devise suitable limits to determine concentration requirements. Those limits shall take into account, amongst others, the relevant thresholds laid down in Article 52 of Directive 2009/65/EC.
3. EBA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by 30 June 2024.
4. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.