Issuance of Stablecoins Under MiCA Regulation : The Basics You Need to Know
- BECTRA
- Mar 5
- 1 min read
"He who does not move forward falls behind. And he who innovates too quickly can instill fear." This is sometimes the dilemma of evolution.
Electronic Money vs. Electronic Money Token (EMT): Don't Get Confused!
What is :
• Electronic Money (E-money) : A digital monetary value issued in exchange for FIAT funds and used for payments (e.g., PayPal balance, Lydia).
• Electronic Money Token (EMT) : A crypto token pegged to a FIAT currency, used for payments, and subject to the MiCA regulation.
Key Difference ? An EMT circulates on the blockchain, while electronic money remains within the traditional banking system.
If you're launching a stablecoin in the Eurozone, you may be issuing an EMT and therefore subject to MiCA and Directive 2009/110/EC.
Who Can Legally Issue an Electronic Money Token?
The MiCA regulation is strict.Only the following entities are authorized to issue electronic money (and thus an EMT):
✅ Banks (credit institutions)
✅ Licensed electronic money institutions (EMI)
✅ Postal check offices (e.g., La Banque Postale)
✅ The European Central Bank and national central banks
✅ States and public authorities (Treasury Department)
In France, even the Caisse des Dépôts et Consignations could not issue an EMT directly without creating a licensed subsidiary (cf. Art. 2 - Para. 3, Art. 1 - Para. 3, and Art. 5 of Directive 2013/36/EU).
Certain entities can issue an Electronic Money Token without a license—stay tuned for an upcoming article!
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