What Are the Key Provisions of the EU’s MiCA Regulation for Stablecoins?
MiCA (Markets in Crypto-Assets) introduces specific requirements for stablecoins, categorizing them as Asset-Referenced Tokens (ARTs) or E-Money Tokens (EMTs). Issuers must be authorized and adhere to strict rules on reserve management, ensuring a stable and liquid reserve that is segregated from the issuer's own funds.
MiCA also imposes limits on the issuance of large-scale stablecoins to mitigate systemic risk to the financial system.