In the rapidly evolving world of crypto and digital assets, regulatory frameworks are crucial for ensuring market integrity and investor confidence. Nearly three years after its initial proposal, the Markets in Crypto-Assets (MiCA) Regulation was published
in the EU Official Journal in June 2023, establishing a comprehensive EU regulatory framework for the offering, intermediation and dealing in cryptoassets.
Broadly, MiCA applies to two categories of entities: (i) crypto-asset issuers, and (ii) cryptoasset service providers (known as CASPs). In June this year, Titles III and IV of the EU’s MiCA Regulation came into effect. As a result, issuers of stablecoins
will need to meet requirements to launch or continue operations in the EU.
MiCA is a significant step forward for the European Union, providing clear guidelines for the issuance and management of stablecoins. This article explores the key aspects of stablecoins under MiCA, featuring insights from the DTI Foundation on what it means
to be compliant.
What is a stablecoin under MiCA?
Stablecoins under MiCA are categorised as either asset-referenced tokens (ARTs) or electronic/e-money money tokens (EMTs). While EMTs reference one official fiat currency, ARTs may reference multiple official currency or a combination of other assets such
as commodities.
What does it mean to be offering a stablecoin in the EU in compliance with MiCA?
To offer a stablecoin in the EU, issuers must be registered as an e-money institution (EMI) or credit institution (CI). There are several key obligations, such publishing a white paper, holding liquid reserves with a third-party custodian, and reporting
the value and composition of reserves, among other requirements.
Importantly, all stablecoin issuers must include Digital Token Identifiers (DTIs) within their white papers. You can think of this like a barcode for the product being offered to investors. With the information, investors know what they are buying, and which
ledgers each token is exposed to. It also allows regulators to understand where the stablecoin issuers’ liabilities are.
What do stablecoin issuers need to do to get a DTI?
A request can be raised on the DTI website for the issuer to share token details. The DTIF will then validate technical attributes and allocate a DTI. Further information can be found within the
Requesting a DTI quick guide.
How many stablecoins to date are being offered in alignment with MiCA?
We’re aware that several institutions are still in the authorisation process. However, to date only the below stablecoins have (i) the issuer registered as an EMI or CI, and (ii) obtained DTIs for their offering documentation.
- SG Forge CoinVertible (EURCV)
- Registered as EMI in France.
- FFG DTI: 9W5C49FJV. Token implementation on Ethereum.
- Banking Circle (EURI)
- Registered as Credit Institution in Luxembourg
- FFG DTI LGPZM7PJ9. Grouping represents implementations on Ethereum and BNB Smart Chain
- Membrane Finance Oy (EUROe and eUSD)
- Registered as EMI in Finland
- EUROe: FFG DTI 9W93HL6PH grouping represents implementations across Concordium, Solana, Arbitrum, Avalanche, Ethereum, Optimism, Polygon.
- eUSD: DTI N1VP3GW48 allocated for Ethereum implementation
- Quantoz Payments (EURD)
- Registered as EMI in the Netherlands
- DTI 3R9LGFRFP allocated for Algorand implementation
- Monerium (EURe)
- Registered as an EMI under supervision of the Central Bank of Iceland.
- FFG DTI N7B1L2FBK grouping represents token implementations across Ethereum, Polygon, Gnosis.
What other initiatives intend to issue stablecoins under MiCA?
Understandably, not all potential stablecoin issuers under MiCA are making announcements just yet. However, we’re aware the below are progressing toward full compliance with MiCA in the EU, including:
- Circle (EURC and USDC)
- Registered as EMI in France.
- White papers published in July, though not aligned with MiCA technical standards template and do not reference DTIs.
- Both FFG DTIs for EURC (FJM594L0V) and USDC (TJWK5QTRK) are incomplete.
- Stasis Foundation (EURS)
- Pending regulatory approval, with issuance of new tokens temporarily suspended since 1 July 2024.
- Stable mint (EURSM)
- EMI license in Malta
- FFG DTI HG6GXKJ9X grouping represents implementation on Ethereum and BNB Smart Chain.
- Also intends to launch a USD-backed EMT
- StablR (EURR)
- EMI license in Malta
- FFG DTI R3QQ9C02D, implemented on Ethereum
- Schuman Financial Group (EUROP)
- Applying for EMI license in France
- FFG DTI 2BKLSP3D6 grouping represents implementations across Polygon and Ethereum
- DECTA Limited and Next Generation (EURT)
- Joint partnership
announcement to issue a Euro-pegged EMT under MICA, leveraging DECTA already authorised as an EMI by the Central Bank of Ireland.
- DWS, Flow Traders and Galaxy
- Intention to launch AllUnity EUR-backed stablecoin, supervised by BaFin in Germany.
The DTI has already been adopted by regulatory authorities across the EU and Canada. Several key market infrastructures have also integrated the standard, including Swift, FIX and Six Digital Exchange. This highlights how DTIs are standardising global crypto
asset reporting and is fast becoming the product of choice for global regulatory authorities and crypto asset service providers.
It is expected that several other firms will progress toward full compliance with MiCA’s stablecoin requirements, signalling a broader trend toward stability and trustworthiness of these forms of crypto-assets across the EU’s digital finance ecosystem.