Issuers of E-Money Tokens (EMTs)

Pursuant to Article 3(1), points 7 and 10 of MiCAR (Regulation (EU) 2023/1114):

• An electronic money token or e-money token (“EMT”) means a type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency;
• An issuer means a natural or legal person, or other undertaking, who issues crypto-assets.

Issuers of EMTs are subject to notification regimes relating to:

• their intention to offer to the public or seek admission to trading of an EMT, pursuant to Article 48(6) of MiCAR; and
• their crypto-asset white paper, pursuant to Article 51(11) of MiCAR.

MiCAR became applicable to issuers of EMTs as from 30 June 2024.

Pursuant to Article 48(1) of MiCAR, a person shall not make an offer to the public or seek the admission to trading of an EMT, within the Union, unless that person is the issuer of that EMT and:

• is authorised as a credit institution or as an electronic money institution; and
• has notified a crypto-asset white paper to the competent authority and has published that crypto-asset white paper in accordance with Article 51 of MiCAR.

Applicant issuers of EMTs may contact the CSSF by referring to the following contact points:

• Entities supervised by the CSSF are invited to contact their usual point of contact/réviseur.
• Entities that are not yet authorised as credit institutions or e-money institutions and intend to issue EMTs are invited to consult the sections of the CSSF website dedicated to credit institutions and e-money institutions to locate the appropriate contact point.

Before submitting a notification file to issue an EMT, entities are invited to:

• Refer to the relevant regulatory framework (i.e. RTS, ITS, Guidelines, CSSF circulars, etc.) available on EBA’s websiteand ESMA’s website  or located in the documentary section at the bottom of this page in order to take note of the information that will be required during the notification procedure;
• Read carefully the section ‘Important notes on the qualification of crypto-assets’ on the MiCAR webpage of the CSSF website.

The initial contact generally starts with a meeting at the CSSF aiming to present the applicant and its project.

In order to ease the discussions, the entity is invited to provide the CSSF with precise information on the business model that will be implemented in Luxembourg, including information regarding the EMT to be offered to the public and/or admitted to trading. To that end, the CSSF requests to be provided with a detailed description of the:

• Business plan containing an exact description of the offer to the public of the EMT or its admission to trading;

• Diagrams illustrating the role of the applicant, detailing the different types of accounts and/or wallets involved in the transactions and transfers;

• Specific explanations concerning the business partners involved in the applicant’s business model (e.g. intermediaries, third parties), including business partners to which clients will be referred for the provision of additional services, detailing their role and their contractual relations with the applicant;
• A legal assessment explaining why the token to be issued should be considered as an EMT under MiCAR.

Issuers of EMTs are furthermore encouraged to share with the CSSF a draft crypto-asset white paper as early as possible, and ideally prior to the launch of the different notification processes.

After this initial interaction, the CSSF will conduct a preliminary analysis of the essential elements of the project.

In case the issuer of EMTs submits a notification to the CSSF, it must include all the documents and information required by the relevant regulatory framework.

The notification of the intention to offer to the public or seek admission to trading of an EMT shall be submitted by letter in electronic form and signed by the authorised management of the entity.

The notification of the crypto-asset white paper shall exclusively be provided to the CSSF in electronic form via the MFT (Managed File Transfer) system of the CSSF, for which the required link will be provided by the CSSF (upon request).

After the notification processes have been completed, the issuance of the EMT is published in the national public register maintained by the CSSF and the electronic central register maintained by the ESMA.

The requirements for issuers of EMTs are set out in Title IV of MiCAR.

RTS, ITS, Guidelines and FAQs published by the European supervisory authorities are available on EBA’s website and ESMA’s website.

The circulars and guidance published by the CSSF as well as forms, templates and other practical arrangements are available on the CSSF website in the documentary section at the bottom of this page or at the bottom of the MiCAR webpage (in connection to general MiCAR-related matters).

Issuers of EMTs are subject to several distinct notification processes under MiCAR notably:

• In accordance with Article 48(6) of MiCAR, issuers of EMTs shall, at least 40 working days before the date on which they intend to offer to the public those EMTs or seek their admission to trading, notify the CSSF of that intention.
• In accordance with Article 51(11) of MiCAR, issuers of EMTs shall notify their crypto-asset white paper to the CSSF at least 20 working days before the date of their publication.
• In accordance with Article 51(12) of MiCAR, any significant new factor, material mistake or inaccuracy that is capable of affecting the assessment of the EMT shall be described in a modified crypto-asset white paper that shall be notified to the CSSF prior to its publication.

In any case, these deadlines are without prejudice to the initial contact made with the CSSF.

White papers prepared in accordance with MiCAR may benefit from a single European passport, which means that a white paper, once approved for the purpose of an offer to the public or an admission to trading, will be accepted throughout the European Economic Area.

Point 15 of the list of activities subject to mutual recognition in Annex I of Directive 2013/36/EU, as transposed by the amended Law of 5 April 1993 on the financial sector, has been updated following the entry into force of MiCAR to include issuing EMTs.