The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly released a consultation paper on October 20, which includes two drafts. The drafts cover suitability assessments for members of the governing body as well as shareholders or members holding qualifying equity interests in issuers of asset reference tokens (ARTs) and cryptoasset service providers (CASPs).
The guidance will provide clarity and harmonization of the criteria for assessing the suitability of governing bodies, shareholders and members holding qualifying shares, thereby reducing arbitrage risks in the application of the rules. The consultation will run until January 22, 2024.