--- title: "Article 39 — Right of redemption" type: regulation legal_status: in_force source: "https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02023R1114-20240109" shortTitle: "Article 39 — Right of redemption" instrument_type: level1_regulation authority: Commission binding: true binding_character: binding mica_level2: false legal_basis: Regulation (EU) 2023/1114 instrument: mica celex: 32023R1114 text_version: "Consolidated version of 9 January 2024" source_url: "https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02023R1114-20240109" check_status: matched verified: true last_checked: 2026-11-09 --- *In force · Consolidated version of 9 January 2024 · Verified 9 Nov 2026 · [Official source](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02023R1114-20240109)* 1. Holders of [asset-referenced tokens](https://www.headlesslaw.com/definitions/mica/asset-referenced-token) shall have a right of redemption at all times against the [issuers](https://www.headlesslaw.com/definitions/mica/issuer) of the asset-referenced tokens, and in respect of the reserve assets when issuers are not able to meet their obligations as referred to in Chapter 6 of this Title. Issuers shall establish, maintain and implement clear and detailed policies and procedures in respect of such permanent right of redemption. 2. Upon request by a holder of an [asset-referenced token](https://www.headlesslaw.com/definitions/mica/asset-referenced-token), an [issuer](https://www.headlesslaw.com/definitions/mica/issuer) of such token shall redeem either by paying an amount in [funds](https://www.headlesslaw.com/definitions/mica/funds), other than [electronic money](https://www.headlesslaw.com/definitions/mica/electronic-money), equivalent to the market value of the assets referenced by the asset-referenced token held or by delivering the assets referenced by the token. Issuers shall establish a policy on such permanent right of redemption setting out: **(a)** the conditions, including thresholds, periods and timeframes, for holders of asset-referenced tokens to exercise such right of redemption; **(b)** the mechanisms and procedures to ensure the redemption of the asset-referenced tokens, including in stressed market circumstances, as well as in the context of the implementation of the recovery plan set out in [Article 46](46.md) or, in the case of an orderly redemption of asset-referenced tokens, under [Article 47](47.md); **(c)** the valuation, or the principles of valuation, of the asset-referenced tokens and of the reserve assets when the right of redemption is exercised by the holder of asset-referenced tokens, including by using the valuation methodology set out in [Article 36](36.md)(11); **(d)** the conditions for settlement of the redemption; and **(e)** measures that the issuers take to adequately manage increases or decreases in the [reserve of assets](https://www.headlesslaw.com/definitions/mica/reserve-of-assets) in order to avoid any adverse impacts on the market of the reserve assets. Where issuers, when selling an [asset-referenced token](https://www.headlesslaw.com/definitions/mica/asset-referenced-token), accept a payment in [funds](https://www.headlesslaw.com/definitions/mica/funds) other than [electronic money](https://www.headlesslaw.com/definitions/mica/electronic-money), denominated in an [official currency](https://www.headlesslaw.com/definitions/mica/official-currency), they shall always provide an option to redeem the token in funds other than electronic money, denominated in the same official currency. 3. Without prejudice to [Article 46](46.md), the redemption of asset-referenced tokens shall not be subject to a fee. *** ### Related * [asset-referenced token](https://www.headlesslaw.com/definitions/mica/asset-referenced-token) — definition used in this article * [official currency](https://www.headlesslaw.com/definitions/mica/official-currency) — definition used in this article * [reserve of assets](https://www.headlesslaw.com/definitions/mica/reserve-of-assets) — definition used in this article * [electronic money](https://www.headlesslaw.com/definitions/mica/electronic-money) — definition used in this article * [issuer](https://www.headlesslaw.com/definitions/mica/issuer) — definition used in this article * [funds](https://www.headlesslaw.com/definitions/mica/funds) — definition used in this article *** [Title III — Asset-referenced tokens](../titles/iii.md) › Chapter 3 — Reserve of assets · [← Article 38](38.md) · [Article 40 →](40.md)