ESMA_QA_2045
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/2045
Regulatory Context
Regulation : PILOT
Level 1 Regulation: Regulation (EU) 2022/858 - DLT Pilot Regime Regulation (DLTR)
Level 2 Regulation: No information available
Level 3 Regulation: No information available
Topic: Requirements for DLT market infrastructures
Subject Matter: Involvement of the authorities in Article 12(1)(b) of CSDR in the authorisation of a DLT SS/ DLT TSS using e-money tokens
Question
Submission Date: 18 December 2023
Should relevant authorities mentioned in Article 12(1)(b) of Regulation (EU) 909/2014 be involved in the authorisation process of a DLT SS or DLT TSS that aims to settle the cash leg of transactions using e-money tokens under the DLTR?
ESMA Answer
Answer Date: 18-12-2023
Answer provided by the European Commission in accordance with Article 16b(5) of the ESMA Regulation Yes. Article 9(6), point (b), and Article 10(7), point (b), of Regulation (EU) 2022/858 (DLTR) provide that as soon as the competent authority considers the application to be complete, it shall send a copy of that application to the relevant authorities specified in Article 12 of Regulation (EU) No 909/2014. That includes the central banks in the Union issuing the most relevant currencies in which settlement takes place, as referred to in Article 12(1), point (b), of Regulation (EU) No 909/2014. Pursuant to Article 3(1), point (7), of Regulation (EU) 2023/1114, e-money token means a type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency. In that context, an official currency means an official currency of a country that is issued by a central bank or other monetary authority. Consequently, for the purpose of the application of Article 9(6), point (b), and Article 10(7), point (b), of the DLTR, when a DLT SS or DLT TSS settled the cash leg of transactions in e-money tokens, the relevant authority referred to in Article 12(1), point (b) of Regulation (EU) No 909/2014 should be the central bank in the Union issuing the official currency referenced in the most relevant e-money tokens in which the settlement takes place. The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.
This document was automatically extracted from the ESMA EMIR Q&A database.