EU MiCA Regulation Fails to Clear Stablecoin Uncertainty

The European Union's MiCA regulation has brought clarity to the crypto market in Europe by providing a unified framework for operating crypto asset services. However, this does not mean that all aspects of the crypto industry are now under one roof.

Payments company Unlimit is the latest addition to the CySEC MiCA register, and its CEO Irene Skrynova pointed out that having one standard across the bloc simplifies operations for companies like hers.

But despite this progress, there's still a gray area surrounding stablecoins. According to industry participants, issuing an e-money token, essentially a stablecoin, requires an EMI license. This puts these digital assets under the direct supervision of Central Banks.

The European Central Bank (ECB) has been vocal about its skepticism towards private, euro-denominated stablecoins, with President Christine Lagarde warning that widespread adoption could pose systemic risks to financial stability and weaken monetary policy transmission.