Gold-Backed Stablecoins : When MiCA Turns Your Shine into Sweat
- BECTRA
- May 6
- 2 min read
Quarterly Reporting Obligations Under MiCA Article 22
The Markets in Crypto-Assets Regulation (MiCA), effective since December 30, 2024, imposes stringent transparency requirements on issuers of asset-referenced tokens (ARTs), including those backed by commodities like gold. Article 22 mandates that issuers must submit quarterly reports to competent authorities, such as the French Autorité des marchés financiers (AMF), detailing :
Number of Holders: The total count of stablecoin holders.
Issued Value and Reserve Volume: The total value of tokens issued and the volume of assets backing these tokens.
Daily Transactions: The average number and aggregate value of daily transactions during the relevant quarter.
Usage as a Means of Exchange: An estimate of the average daily number and aggregate value of transactions where the stablecoin is used as a means of exchange within a single currency area.
These obligations apply to stablecoins with an issuance value exceeding €100 million. However, even below this threshold, authorities may require such reports if deemed necessary to monitor potential risks.
Case of Tether Gold and PAX Gold: Implications Under MiCA
Consider two gold-backed stablecoins: Tether Gold (XAUT) and PAX Gold (PAXG). Currently, these tokens are not issued under the MiCA framework. However, if their issuers intend to offer these stablecoins to the public or list them on trading platforms within the European Union, they must comply with MiCA requirements, including:
Establishment in the EU: Setting up a legal entity within the European Union.
Obtaining Authorization: Securing approval as an ART issuer from the relevant authority.(Coincu)
Publishing a White Paper: Providing a document detailing the token's characteristics, rights and obligations of holders, and associated risks.
Quarterly Reporting: Adhering to the reporting obligations outlined above.
Without these steps, Tether Gold and PAX Gold cannot be legally offered or listed within the European Union.
Enhanced Transparency for Secure Adoption
MiCA aims to establish a harmonized regulatory framework for crypto-assets within the European Union, thereby bolstering investor confidence and market stability. The quarterly reporting obligations imposed on issuers of asset-referenced tokens are a pivotal aspect of this regulation, ensuring increased transparency and effective risk monitoring.
Comments