Issuer of Significant Stablecoins: Criteria and Obligations

BECTRA
Apr 20
2 min read

When an institution is approved as a credit or electronic money institution, or when it is in the process of requesting approval, it can submit a request to the AMF (French Financial Market Authority) to classify its stablecoin as "significant". This classification provides a unique legal framework for tokens that meet well-defined criteria, especially in terms of activity and reach.

Official Criteria for Classifying a Stablecoin

The AMF imposes strict requirements for a stablecoin to be considered "significant." To achieve this, the issuer must demonstrate, through a detailed activity program, that the stablecoin meets at least three of the following criteria:

1. High Number of Holders

One of the main criteria for classifying a stablecoin as significant is the number of holders. If your token has more than 10 million holders, this is a strong argument for its classification.

2. Significant Value

The size of the market capitalization or volume of assets is also a determining factor. For a stablecoin to be considered significant, it must have a value greater than 5 billion euros.

3. Dynamic Transaction Activity

Transaction activity is another crucial indicator. To qualify, the stablecoin must average more than 2.5 million daily transactions, with a total volume exceeding 500 million euros.

4. Access Controller Status

A stablecoin may also be classified because of its role as an access controller in financial systems or key applications. This status requires a detailed examination according to specific regulatory requirements.

5. Global Reach

The stablecoin must be used for global payments or transfers, ensuring its relevance and ability to impact international markets.

6. Interconnection with the Traditional Financial System

Interconnection with the traditional financial system is another important criterion. If the issuer or the stablecoin is connected to traditional financial systems (banks, payment institutions), it strengthens its impact on the market.

7. Multiple Token Issuances

Another factor that can qualify a stablecoin as "significant" is if the issuer also offers other stablecoins or services within the crypto-assets ecosystem, showing increased diversification and influence in the sector.

Surveillance by the EBA: A fondamental Role

Once the AMF classifies a stablecoin as significant, the information is forwarded to the European Banking Authority (EBA). Once this classification is official, the EBA takes over as the supervisory authority, replacing the AMF or the ACPR depending on the situation.

Additional Obligations for Issuers of Significant Stablecoins

Being an issuer of a significant stablecoin comes with additional responsibilities. This includes obligations around transparency, regulatory compliance, and supervision. These requirements help strengthen security and trust in operations related to the stablecoin while ensuring that the issuer adheres to the highest standards of the sector.

The Impact of Classification

Being classified as an issuer of a significant stablecoin provides a privileged status, but it also entails heightened vigilance and additional obligations. It is therefore essential for potential issuers to understand these criteria and comply with them to maximize their chances of receiving this recognition and ensure the longevity of their stablecoins in the international market.