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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).
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:
Asset-referenced tokens (stablecoins linked to multiple currencies or assets);
E-money tokens (stablecoins linked to a single fiat currency);
Other crypto assets, i.e., utility tokens that weren’t previously covered by existing EU financial regulations such as the Markets in Financial Instruments Directive (MiFID).
MiCAR generally does not regulate NFTs.
In addition to, and independent of regulating crypto assets, MiCAR required that companies intending to offer crypto services, to become licensed as a Crypto-Asset Service Provider (CASO), such services include:
providing custody and administration of crypto-assets on behalf of clients;
operation of a trading platform for crypto-assets;
exchange of crypto-assets for funds or for other crypto-assets and
providing advice on crypto-assets.
Providing crypto-asset services without MiCAR license or publicly offering or issuing (unregulated) EMTs or ARTs in the EEA is prohibited.
Under MiCAR, "stablecoins" are not directly defined, but regulated as two separate assets, EMTs and ARTs:
Electronic Money Tokens (EMTs) are crypto-assets pegged to a single fiat currency (such as EUR or USD), functioning primarily as payment instruments. Issuance is restricted to authorized institutions and there are certain strict requirements regarding the management of the EMT. For example, reserves must be fully backed.
Asset-Referenced Tokens (ARTs) are crypto-assets which are not EMTs referencing one or multiple assets (e.g., two or more fiat currencies, commodities, or crypto). Issuers require EU authorization, with exemptions for small offers (<€5M/year) or qualified investors. Also, issues of ART must comply with strict reserve requirements.
Both types of crypto assets share certain commonalities. In particular, it is a prerequisite that a MiCAR-compliant white paper, detailing risks, reserves, and redemption mechanics must be published.
Bybit EU is a licensed Crypto-Asset Service Provider under MiCAR license, which means that Bybit EU can offer these services, such as custody of your crypto assets and exchange of crypto-assets for funds across the EEA in a safe, secure and compliant manner.
The list of licensed EMTs and ARTs is constantly growing and we expect that there will be many exciting developments in the future, providing safe, compliant and efficient stablecoins to European customers in the future.
As of July 2025, USDC is a major EMT licensed under MiCAR and available on Bybit EU. The list of MiCAR-compliant EMT and ART is growing. We are looking to increase the availability of licensed EMTs and ARTs on bybit.eu in the near future.
Many previously popular stablecoins have not (yet) been licensed under MiCAR, the most prominent being USDT. Bybit EU does not publicly offer or promote unregulated stablecoins such as USDT. That being said, it is in general not unlawful for EU customers to hold, buy or sell unregulated stablecoins.
However, customers shall be advised that holding unregulated stablecoins such as USDT carries significant risk, including the potential for loss of value or stability, due to the lack of regulatory oversight, transparency regarding reserves, and protection mechanisms as set out under MiCAR.
Please note that investing in crypto-assets, including MiCAR regulated bears certain risks. The contents of this article are provided for educational purposes only. Bybit EU does not provide any form of investment advice.