Recital 10

(10)As a guiding principle, the stress testing programmes should follow similar rules and approach as to credit institutions stress testing under Directive 2013/36/EU of the European Parliament and of the Council ² . However, considering that the risks of crypto-asset activities provided by issuers of asset-referenced tokens or e-money tokens other than credit institutions are different to those of credit institutions, it is necessary to group the crypto-asset activities into different risk categories for the purpose of the stress testing. Furthermore, grouping the crypto-asset activities and risks should ensure that issuers of the relevant tokens and competent authorities are able to identify all the functions, processes, and actors, along with their associated risks including any environmental, social, and governance factors, and identify any potential issues or risks. These identifications should facilitate the design and assignment of specific risk scenarios presented in the different activities of the relevant issuer. The scenarios should be well-defined in order to quantify their potential impact, the range of potential losses and the range of plausibility associated with the specific risk scenarios identified. Therefore, when identifying specific risks, the relevant issuer should specify the timeline of the stress scenario, which should be three years for the solvency stress test and up to one year for the liquidity stress test.