ADAN’s Response to the EBA’s Consultation on the Guidelines on Supervisory Reporting Templates for ARTs and EMTs

On October 15, 2024, Adan submitted its comments to the European Banking Authority’s (EBA) public consultation on the Guidelines on supervisory models for issuers of ARTs and EMTs, pursuant to Regulation (EU) 2023/1114. This consultation aims to address data gaps to improve the supervision of issuers. Adan thanks the EBA for the opportunity to contribute to this consultation.

ADAN and its members welcome this initiative while raising several points for consideration:

• Privacy of crypto-asset holders: ADAN has expressed concerns about the requirement to report personally identifiable information on holders, which poses risks to privacy and security.
• Trade secrets: The transmission of sensitive data—particularly the distinction between individual and professional users—could create disproportionate competitive advantages for certain issuers.
• Harmonization of reporting obligations: The proliferation of reporting models increases the compliance burden for CASPs and issuers and raises the risk of errors.

ADAN calls for adjustments that would preserve the confidentiality of account holders while ensuring effective oversight. Among its proposals, ADAN recommends focusing on the aggregate number of account holders, without disclosing individual identities. Alternatively, Adan proposes a solution based on the CONCAT standard, combined with SHA-256 cryptography, to pseudonymize holder data. This would allow CASPs to report data without revealing client names, while ensuring that issuers can identify unique holders, all while protecting privacy through encryption.

Adan also thanks all contributors, including Binance, Circle, Coinhouse, Deloitte, Kramer Levin, Orwl, and SG Forge, for their participation in drafting this response. We also thank the European Blockchain Association for supporting our proposal and our response.