Understanding Stablecoins Under MiCAR

As Europe tightens its grip on crypto regulation, the new MiCAR (Markets in Crypto-Assets Regulation) brings more clarity — and confidence — for everyday users of digital currencies. One area it covers closely? Stablecoins - also known as E-Money Tokens (EMT) or Asset Refferenced Token (ART).

Stablecoins are a type of cryptocurrency designed to keep their value steady—often pegged to a fiat currency like the euro or US dollar. Popular global examples include USDC and USDT. Under MiCAR, stablecoins — especially those used for payments — must meet strict standards for transparency, reserves, and consumer protection and the respective stable coin issuers must obtain a license to be able to publicly offer their respective stablecoins in the European Economic Area (EEA).

What is MiCAR?

The Markets in Crypto-Assets Regulation (MiCAR) is a pioneering comprehensive legal framework established by the European Union (and also adopted in the EEA) to regulate crypto assets and related services across EEA member states. Adopted in June 2023, it became fully effective from December 2024, with a transition period (as specified by member states) for existing businesses to adapt to the new framework. 

MiCAR was designed to enhance consumer protection and transparency, support financial stability and push innovation in digital finance within the EEA. It introduces uniform rules for crypto asset issuers and service providers, including requirements for transparency, disclosure, authorization and supervision. The regulation covers specific types of crypto assets: