Unlimit, a payments company, has joined the Cyprus Securities and Exchange Commission’s Crypto Asset Service Providers register under the Markets in Crypto-Assets regulation. The registration marks progress toward clearer rules across the European Union. It replaces a mix of local requirements with a single framework, easing compliance for crypto firms. Stablecoins, however, remain a challenge.
Stablecoins still fall under electronic money rules
MiCA creates uniform standards for crypto asset services, but stablecoin issuers must still obtain an Electronic Money Institution license. Unlimit already holds one in Cyprus, which places these tokens under central bank supervision. The European Commission is reviewing the regulation’s effectiveness as part of its standard process.
Companies have pointed out that the dual licensing requirement complicates operations. Issuing an e-money token requires compliance with both MiCA and electronic money rules. This adds expense and difficulty, especially for smaller firms already facing heavy compliance demands.
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The regulatory split reflects broader tensions. The European Central Bank has long been wary of private, euro-denominated stablecoins. President Christine Lagarde has repeatedly stated that their widespread use could threaten financial stability and weaken monetary policy. The ECB’s proposed solution is a digital euro, a public alternative to private stablecoins.
Under MiCA alone, the compliance cull saw some 80% of crypto firms under national CASP regulations disappear. Some major players, like Tether—the largest stablecoin with a market cap between $185 billion and $190 billion—have avoided registration entirely.
For businesses, the overlap between MiCA and EMI licensing creates a tight path. The ECB shows little interest in revising the rules, forcing issuers to manage a system that classifies them as both crypto assets and electronic money. The issue extends beyond compliance, raising concerns about whether the EU’s approach will limit innovation or push smaller firms out of the market.
The ECB’s resistance to private stablecoins has practical effects. It determines which companies can operate in the EU and under what conditions. The digital euro, still in development, is presented as a safer option, though its launch date remains unclear. Until then, stablecoin issuers must decide whether to bear the cost of dual licensing or risk exclusion from the bloc’s market.
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Unlimit’s registration demonstrates progress, but it also reveals the limits of the regulation. The company’s chief executive, Irene Skrynova, described the framework as a simpler solution for crypto businesses. For stablecoins, however, the simplification ends at the EMI license requirement. The European Commission’s consultation may resolve some uncertainties, but the ECB’s firm stance suggests major changes are unlikely.
Firms now face a difficult situation. The EU wants a regulated crypto market, but its treatment of stablecoins—classifying them as both crypto assets and electronic money—creates confusion. The current message is straightforward: if you want to issue stablecoins in Europe, you must follow the ECB’s rules.
Smaller players may struggle to keep up.