European Union
Markets in Crypto-Assets Regulation (MiCA)
ESMA · National NCAs
June 30, 2024
Overview
The world's first comprehensive crypto-asset regulation
The big picture: MiCA creates a unified regulatory framework across all 27 EU member states plus the EEA — one rulebook, one passport.
How it works: Stablecoins fall into two categories:
- EMTs (Electronic Money Tokens) — pegged to a single fiat currency, regulated as e-money
- ARTs (Asset-Referenced Tokens) — backed by multiple assets, require separate authorization
Why it matters: Issuers need e-money or credit institution authorization, 1:1 reserve backing, segregated custody, and quarterly disclosure. Significant EMTs (daily transactions exceeding €200M or holders exceeding 10M) face enhanced requirements including higher capital buffers and ECB oversight.
Key Provisions
What MiCA requires for stablecoin issuers
01
EMT / ART Classification
The big picture: Classification determines the entire compliance regime.
- Single-currency stablecoins (USDC, USDT) are EMTs — regulated as e-money
- Multi-asset tokens are ARTs — require separate authorization
02
Authorization Requirement
What's required:
- EMT issuers — must be authorized as e-money institutions or credit institutions in an EU member state
- ART issuers — require specific CASP authorization
Why it matters: Passporting allows operation across all member states from a single authorization.
03
Reserve Requirements
The big picture: 1:1 backing with safe, low-risk assets.
- Segregation — reserve assets must be separated from the issuer's own funds
- Custody — held by authorized credit institutions
- 30% minimum in bank deposits spread across multiple institutions
04
Significant Token Thresholds
The big picture: Tokens are classified as "significant" if they hit any of these thresholds:
- €5B in issuance
- 10M holders
- €500M daily transaction value
Why it matters: Significant tokens face enhanced prudential requirements, including ECB involvement in supervision.
Compliance Impact
What changed when MiCA took effect
Tether (USDT)
What happened: Delisted from major EU exchanges for failing to obtain EMT authorization. Limited to grandfathered holdings.
Why it matters: USDT's dominance in emerging markets does not extend to regulated EU venues.
Circle (USDC)
What happened: Obtained e-money institution license in France via Société Générale partnership.
Why it matters: USDC is the first major stablecoin fully MiCA-compliant and available across all EU exchanges.
Exchanges
What happened: Binance, Kraken, and OKX restricted USDT trading pairs in the EU. Coinbase Europe positioned USDC as the default stablecoin.
What's next: New euro-denominated stablecoins (EURC, EURI) gaining share.
Deep Dive
Full MiCA analysis on StableClarity.com
Complete EMT/ART classification, passport matrix, whitepaper requirements, and NCA coordination framework.
Visit StableClarity.com →