Stablecoins under MiCA: euro stablecoins become the norm
Under the EU's MiCA regulation, euro-denominated stablecoins like EURC are gaining ground over dollar stablecoins. We explain what changed and what it means for EU users.
Since MiCA (Markets in Crypto-Assets) came fully into force, strict requirements now apply to issuers of stablecoins offered in the EU. The result: euro-denominated stablecoins such as EURC are gaining ground, while major dollar stablecoins like USDT have been restricted or discontinued by some European platforms for EU users.
In short
🇪🇺 MiCA imposes strict requirements on stablecoin issuers (reserves, licensing, transparency) · 💶 euro stablecoins (EURC etc.) are favoured within the EU · 🚫 some dollar stablecoins are restricted for EU users due to lacking MiCA authorisation · 🔍 always check whether a stablecoin issuer holds a valid e-money token (EMT) licence.
What changes under MiCA for stablecoins?
MiCA distinguishes two categories of ‘asset-referenced tokens’: e-money tokens (EMTs), which track the value of a single fiat currency (such as the euro or dollar), and asset-referenced tokens (ARTs), pegged to a basket of assets. EMT issuers must be licensed as an e-money institution or credit institution, hold sufficient reserves (1:1 backed, segregated from own funds), and report regularly to regulators. Non-compliant stablecoins can no longer be offered or traded on platforms operating in the EU.
Why are euro stablecoins gaining ground?
Issuers of euro stablecoins, such as Circle with EURC, applied for and obtained MiCA licences early on, allowing them to be offered across the EU without restriction. For European users, a euro stablecoin also has a practical advantage: no exchange-rate risk between euro and dollar when entering or exiting, which matters for anyone trading or saving within the eurozone.
What does this mean for you?
If you use stablecoins for trading or temporarily parking value, check whether the platform and the specific stablecoin hold a valid MiCA licence. Major EU-regulated exchanges typically display this clearly on their platform or in their terms. For anyone who thinks and calculates in euros, a euro stablecoin like EURC is often the more logical choice than a dollar variant.
Conclusion
MiCA has fundamentally changed the stablecoin market in the EU: transparency and licensing are now the norm, and euro stablecoins benefit the most. Always do your own research before holding large amounts in any stablecoin — even regulated stablecoins are not without risk.