Article 39 Right of redemption

Holders 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; shall have a right of redemption at all times against the issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; of the 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;, and in respect of the reserve assets when issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; are not able to meet their obligations as referred to in Chapter 6 of this Title. Issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; shall establish, maintain and implement clear and detailed policies and procedures in respect of such permanent right of redemption.

1. the conditions, including thresholds, periods and timeframes, for holders 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; to exercise such right of redemption;

2. the mechanisms and procedures to ensure the redemption of the 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;, including in stressed market circumstances, as well as in the context of the implementation of the recovery plan set out in Article 46 or, in the case of an orderly redemption 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;, under Article 47;

3. the valuation, or the principles of valuation, of the 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; and of the reserve assets when the right of redemption is exercised by the holder 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;, including by using the valuation methodology set out in Article 36(11);

4. the conditions for settlement of the redemption; and

5. measures that the issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets; take to adequately manage increases or decreases in the reserve of assetsmeans the basket of reserve assets securing the claim against the issuer; in order to avoid any adverse impacts on the market of the reserve assets.

Where issuersmeans a natural or legal person, or other undertaking, who issues crypto-assets;, when selling 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;, accept a payment in fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; other than electronic moneymeans electronic money as defined in Article 2, point (2), of Directive 2009/110/EC;, denominated in an official currencymeans an official currency of a country that is issued by a central bank or other monetary authority;, they shall always provide an option to redeem the token in fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; other than electronic moneymeans electronic money as defined in Article 2, point (2), of Directive 2009/110/EC;, denominated in the same official currencymeans an official currency of a country that is issued by a central bank or other monetary authority;.

Without prejudice to Article 46, the redemption 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; shall not be subject to a fee.