What are Asset-Referenced Tokens (ARTs) under MiCA?
Last updated
Last updated
According to Article 3(1)(6) of MiCA, an Asset-Referenced Token (ART) means “a type of crypto-asset that is not electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies”.
The definition begins by excluding from the scope of ARTs. As both share common characteristics envisaged by purporting to maintain a stable value, the legislator felt the need to expressly exclude EMTs from the definition of ARTs. Consequently, any tokens that qualify as an EMT cannot concurrently also qualify as an ART, even if they match the rest of the definition of ARTs.
ARTs purport to maintain a stable value by referencing another value, right, or a combination of them, which can include one or more official currencies. Based on this definition, ARTs can be seen as another form of “stablecoins” introduced by European legislators. However, their ability to maintain a stable value by reference to another value or right outlines a different intention behind the classification of these assets. As highlighted in Recital 18, “so as to avoid circumvention and to make this Regulation future-proof” the legislators tried to prevent scenarios where crypto-assets would reference the value of an , which in turn references the value of an official currency, thereby circumventing the application of the rules related to EMTs. Moreover, the definition expressly captures any crypto-assets that purport to maintain a stable value, not only those that effectively manage to maintain a stable value.
Furthermore, ARTs may be seen as a catch-all category that encompasses all crypto-assets purporting to maintain a stable value, excluding those falling within the definition of EMTs. However, in its Third Consultation Package, ESMA warns that if a crypto-asset shares common features with any type of financial instrument – referred to as “hybrid” crypto-assets – such crypto-asset will be considered as a financial instrument and the application of MiFID II prevail over MiCA’s dispositions.