MiCA License Secured, But Stablecoin Hurdles Persist

Unlimit has secured its MiCA license from CySEC, marking a significant milestone for the payments firm. This registration enables Unlimit to operate under the EU's unified crypto asset framework, which was previously fragmented by different national standards across member states.

Irene Skrynova, who runs global payments at Unlimit, noted that there is now a single framework in place, representing a real shift for the industry. However, the MiCA license does not cover everything, particularly when it comes to stablecoin issuance.

The problem lies in the overlap between the MiCA and Electronic Money Institution (EMI) licenses. Issuing a stablecoin in Europe still requires an EMI license, creating a dual-licensing setup that is proving costly for smaller players. The European Commission has opened a public consultation to address this issue.

The compliance costs associated with MiCA have led many firms to exit the European market entirely. Tether, one of the largest stablecoin issuers, has not registered under MiCA, highlighting the barriers in place. This consolidation or shrinkage of the market is detrimental to competition.