MiCA and stablecoins in EUR
It is important to note that, contrary to popular belief, MiCA does not introduce entirely new regulations for fiat-backed stablecoins. Instead, it confirms that stablecoin issuers should be regulated as electronic money institutions (EMIs) under the existing electronic money directive (EMD).
In that sense, Jón Egilsson explained the misunderstandings about MiCA and stablecoins for CoinDesk's Consensus Magazine on February 6. Egilsson is co-founder and chairman of Monerium and former chairman of the supervisory board of the Central Bank of Iceland
“The EU’s comprehensive guidance on crypto does not introduce completely new regulations for fiat-backed stablecoins. Instead, it affirms existing rules that many current issuers are not yet following.”
Jon Egilsson
Additionally, he warned that the lack of regulatory compliance in Europe has allowed unregulated fiat stablecoins to be listed on European exchanges, putting compliant European companies at a disadvantage and European consumers at risk. The apparent reward for U.S. issuers that employ a “break first, fix later” approach creates a dynamic of unfair competition.
As the European Union prepares to implement MiCA later this year, the EUR stablecoin market is likely to continue growing. Therefore, compliant issuers will potentially gain an advantage over those operating without the necessary electronic money licenses, the former central banker concluded.
