Issuing an Electronic Money Token Without a License ? Yes, but Under Conditions !
- BECTRA
- Mar 7
- 2 min read
Certain entities can issue an Electronic Money Token (EMT) without a license.
"One must know what they want. Once they know, they must have the courage to say it. And once they say it, they must have the courage to do it." – Clemenceau
Do you think issuing an Electronic Money Token (EMT) in Europe always requires authorization ? Think again ! Some entities can bypass MiCA without a license… provided they comply with strict conditions.
But beware ! This is not a regulatory loophole but a strictly defined framework for specific use cases. If you plan to launch a public stablecoin without going through regulation, let us warn you right away: bad idea.
🎯 Who Can Issue EMTs Without MiCA Authorization?
Only specific entities qualify for this exemption. Here are the conditions to issue an EMT without authorization from the ACPR (Article 561-16-1 of the French Monetary and Financial Code):
✅ Limited Use: Prohibited for Speculation & Crypto Assets
👉 The EMT must only be used for purchasing goods or services (not for investments or crypto exchanges).
✅ Capped Amounts: No Millions in Circulation
🔹 Maximum storage: €150 on a non-rechargeable electronic device.
🔹 If rechargeable: Maximum €150 every 30 days, and usable only in France.
✅ Specific Conditions for Cash Reloads💰 Cash reloading is prohibited, except in two cases:
Payments within a closed-loop network (e.g., a card valid only in a single group of stores).
Non-rechargeable device with a balance under €50.
✅ Mandatory User Identification🙅 No anonymity allowed: Every reload must come from an identified and verified user.
✅ Monitoring & Detection of Suspicious Behavior🔍 The issuer must implement a control system to track transactions and detect unusual customer behavior (e.g., a user holding multiple prepaid devices).
✅ Mandatory Notification to the ACPR
Even though these entities are not subject to MiCA, they must declare their activity and submit their white paper to the ACPR.
🏦 Who Is Exempt in France?
Here are some real-life examples of entities that can issue EMTs without a license:
🍽️ Prepaid Cards for Corporate Restaurants ➡️ Usage is limited to the company’s restaurants or a partner restaurant network.
🛍️ Loyalty Programs in Shopping Centers➡️ Loyalty points converted into e-money within a specific retail network. Total cap: The total circulating amount must not exceed €1 million.
🎭 Cultural Events & Festivals ➡️ Prepaid cards, rechargeable only on-site, used for food, drinks, and merchandise. Strict conditions: Maximum €150 per card, and valid only for the event duration.
These exemptions are highly regulated and apply only to very specific use cases.
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