Issuing Stablecoins as an EMI Holder: Legal Considerations

Question

As an EMI holder can I issue stablecoins?

Executive Summary

In response to the question about the ability of an EMI holder to issue stablecoins, the following summary highlights the key directives based on MiCA regulations:

  • Stablecoin Issuance by EMIs: An Electronic Money Institution (EMI) within the EU can issue stablecoins as ‘e-money tokens’, provided they reference a single official currency and are designed to maintain a stable value.
  • Authorization and Compliance: The EMI must be authorized as a credit or electronic money institution and comply with MiCA’s procedures, including the creation and notification of a comprehensive crypto-asset white paper 20 working days prior to its publication.
  • Simplified Authorization Path: Transitional provisions in MiCA might allow EMIs with existing national authorization a streamlined process for crypto-asset service provision.
  • Regulatory Adherence: To legally issue stablecoins, EMIs must follow all MiCA procedural requirements, including preparing the white paper, notification, and adherence to legal stipulations for authorization under both MiCA and national laws where applicable.

This summary establishes the conditions under which an EMI holder can engage in stablecoin issuance within the regulatory scope of MiCA.

Assumptions

  • EMI License Holder: Assume the user holds a valid EMI license within the European Union, subject to MiCA regulations.
  • Nature of Stablecoin: Assume that the stablecoin they intend to issue is pegged one-to-one with a fiat currency, such as the Euro.
  • Intent of Issuance: The intention behind issuing stablecoins is to provide a digital payment instrument, not to offer investment opportunities.
  • Regulatory Scope: It is assumed that the user’s EMI licensing terms are standard and that the activities they are licensed for do not already exclude issuing financial instruments that could include stablecoins.