Unlimit Gains EU Crypto Framework, But Stablecoin Rules Remain Complex
Unlimit, a Limassol-based payments company, has been added to the CySEC MiCA register. This move simplifies operating cryptoasset services in the EU by providing a single framework for compliance.
However, issuing tokens falls under the direct supervision of Central Banks, requiring a costly dual-licensing requirement. Unlimint has long held an EMI license in Cyprus.
The European Commission recently launched a public consultation on the functioning of MiCA, reviewing its regulatory homework. A main complication for industry participants is that issuing an e-money token - essentially a stablecoin - requires an EMI license.
President Christine Lagarde has warned that widespread adoption of private, euro-denominated stablecoins could pose systemic risks to financial stability and weaken monetary policy transmission. The ECB is prioritizing the development of the digital euro as a public-money alternative.