SAFE Finance Blog
31 Jan 2025

The SAFE Regulatory Radar in January

Guidance on MiCAR Implementation, ESG Risk Management Tools, and Banking Union Resolution Updates

At the end of each month, the SAFE Regulatory Radar highlights a selection of important news and developments on financial regulation at the national and EU level. 

MiCAR: Further guidance on the implementation

On 17 January 2025, the European Securities and Markets Authority (ESMA) and the European Commission published guidance regarding the Regulation on Markets in Crypto-Assets (MiCAR) on non-Markets in Crypto Assets (MiCA) compliant asset-referenced tokens (ARTs) and e-money tokens (EMTs). In the statement accompanying the Q&A, ESMA and the European Commission clarified the modality and the timeline for compliance by crypto asset service providers with MiCAR. Additionally, in the Q&A, the European Commission specified these stablecoins and what services provided in or into the EU constitute an offering to the public, a seeking admission to trading, or a placing.

On 18 December 2024, the European Banking Authority (EBA) published its final Guidelines on reporting requirements under MiCAR. These Guidelines aim to ensure that Competent Authorities receive sufficient and consistent information to monitor issuers’ compliance with MiCAR requirements and provide the EBA with the data needed to carry out the significance assessment under MiCAR.

The Guidelines address reporting data gaps identified by the EBA, intend to promote supervisory consistency, foster a uniform supervisory approach across Member States, and ensure a level playing field in the Single Market. They will enable Competent Authorities to gather comparable information to oversee issuers’ adherence to MiCAR requirements while ensuring the EBA has the necessary data to perform the annual significance assessment under MiCAR.

To this end, the EBA also included a visual explainer to support compliance by issuers of asset-referenced tokens and e-money tokens.

Additionally, on 16 January 2025, the EBA and ESMA published a Joint Report on recent developments in crypto-assets, which analyzes decentralized finance, crypto lending, borrowing, and staking.

ESG: New Guidelines on Risk Management and CRD6 Preparation

On 9 January 2025, the EBA published its Guidelines on the management of ESG risks, which provide the requirements for identifying, measuring, managing, and monitoring ESG risks. The guidelines aim to equip institutions with the tools necessary to face the intensification of ESG risks and the transition to a sustainable economy. 

The guidelines set out the requirements for the internal process and risk management arrangements that institutions should have in place ahead of the Capital Requirements Delegation 6 (CRD6)'s entry into force. Moreover, they include the content of plans to be prepared by institutions with a focus on the financial risks stemming from ESG factors. Key areas include standards for ESG risk management, qualitative and quantitative impact assessment criteria and action plans. 

Banking Union: Handbook on independent valuers for resolution purposes and Operational Guidance on operational continuity in resolution

On 19 December 2024, the EBA published a Handbook on independent valuers for resolution purposes. The Handbook aims to promote consistency by outlining best practices, comprehensive methodologies, and structured processes for selecting and appointing independent valuers, supported by practical examples of their application in various scenarios.

The Handbook addresses the three key aspects of independence that resolution authorities must evaluate in a valuer: possession of the required qualifications, expertise, resources, and knowledge; legal separation from relevant public authorities and entities; absence of material conflicts of interest or shared interests with those entities.

The Handbook chronologically covers every stage of the process—preparation, appointment, and post-appointment. Preparatory steps include conducting market research, setting up framework contracts, and establishing internal procedures. During the appointment phase, it highlights the importance of assessing the valuer’s independence and implementing safeguards. Post-appointment, it emphasizes maintaining policies and procedures to manage potential conflicts of interest.

On 23 January 2025, the Single Resolution Board (SRB) updated its Operational Guidance on Operational Continuity in Resolution

These revisions clarify how banks should meet service identification and mapping expectations, risk assessment, and mitigation measures, including resolution-resilient contracts, management systems, and governance frameworks.

The updates incorporate references to new frameworks like the Digital Operational Resilience Act (DORA) and EBA Guidelines on resolvability while maintaining the SRB’s overall approach. Changes include updated references, clarified requirements, and removing redundant content, but no significant industry impact, so no public consultation was held.

Key additions applicable from the 2026 resolution planning cycle depend on pending measures such as the EBA resolution planning framework overhaul. The guidance reaffirms the need for banks to ensure the continuity of critical and essential services during resolution, regardless of their service delivery model, while aligning with the proportionality principle and engaging in dialogue with resolution teams.

The guidance focuses on banks’ readiness to implement resolution strategies, stabilize operations, and restructure effectively, consistent with the SRB’s Expectations for Banks.

Updates:

  • On 10 January 2025, ESMA released new Q&As for the Alternative Investment Fund Managers Directive (AIFMD), the Central Securities Depositories Regulation (CSDR), the Digital Operational Resilience Act (DORA), the Markets in Crypto-Asset Regulation (MiCA), and on OTC derivatives, central counterparties and trade repositories (EMIR) – CCPs.

Public consultations

  • European Banking Authority (EBA): Consultation on Guidelines on ESG scenario analysis. The deadline is 16 April 2025.
  • EBA: Consultation on draft technical standards on the prudential treatment of crypto assets exposures under the Capital Requirements Regulation. The deadline is 8 April 2025.
  • ESMA: Consultation on the Guidelines on Internal Controls for Benchmark Administrators, Credit Rating Agencies and Market Transparency Infrastructures. The deadline is 18 March 2025.
  • ESMA: Consultation on the draft RTS for the establishment of an EU code of conduct for issuer-sponsored research. The deadline is 18 March 2025.
  • European Commission: Consultation on the Single Market Strategy. The deadline is 7 March 2025.

Pietro Chiarelli is Financial Policy Analyst at the SAFE Policy Center.