Recital 6

(6)Issuers of an asset-referenced token that are not crypto-asset service providers or other obliged entities are not subject to Directive (EU) 2015/849 of the European Parliament and of the Council ³ or to Regulation (EU) 2023/1113 of the European Parliament and of the Council ⁴ . However, it is crucial that the applicant issuer’s business model is structured in a manner that does not expose the applicant issuer or the financial sector to risks of money laundering and terrorist financing, since that constitutes a ground of refusal of the authorisation. Accordingly, the applicant issuer should provide an overall risk assessment containing adequate information to enable the competent authority’s assessment of the applicant issuer’s business model’s exposure and sensitivity in relation to money laundering and terrorist financing risks. The overall risk assessment should include information on the mechanisms and arrangements related to the issuance, redemption and distribution of an asset-referenced token and the envisaged involvement of crypto-asset service providers in such mechanisms. Where the applicant issuer’s business model would involve arrangements with crypto-asset service providers, the application for authorisation should include a forward-looking description prepared by such crypto-asset service provider of their internal controls and continuous compliance with the relevant anti-money laundering and counter terrorism financing Union rules.