1. MiCA and E-Money Tokens (EMTs)
Under MiCA (Regulation (EU) 2023/1114), euro-pegged stablecoins are classified as e-money tokens (EMTs) — crypto-assets that purport to maintain a stable value by referencing the value of one official currency. EMT issuers must hold an Electronic Money Institution (EMI) license and comply with specific reserve, redemption, and governance requirements.
- E-money token (EMT) — MiCA classification for fiat-referenced stablecoins; subject to EMI licensing requirements
- Asset-referenced token (ART) — MiCA classification for multi-asset-backed stablecoins; separate licensing regime
- MiCA full application — Applicable from December 30, 2024 across all EU member states
- Significant EMT — EMTs exceeding €5B in circulation or 10M transactions/day face enhanced supervisory requirements including ECB oversight
2. Electronic Money Institution (EMI) Authorization
Any entity issuing an e-money token in the EU must hold an EMI license from the national competent authority (NCA) in their member state of domicile. For Qivalis, this is De Nederlandsche Bank (DNB) in the Netherlands. The EMI authorization process requires demonstration of adequate capital, governance, risk management, and operational resilience.
- Initial capital requirement — Minimum €350,000 for EMI authorization; ongoing own funds requirements scale with e-money outstanding
- Safeguarding requirements — Funds received in exchange for e-money tokens must be safeguarded; either deposited in a segregated account or covered by an insurance policy
- Passporting — EMI authorization in one EU member state allows passporting of services across all EU member states
- White paper requirement — MiCA requires publication and NCA approval of a crypto-asset white paper prior to token issuance
3. Crypto-Asset Service Provider (CASP) Licensing
Exchanges, custody providers, and other intermediaries that provide services related to MiCA-regulated assets must obtain Crypto-Asset Service Provider (CASP) authorization. Qivalis has indicated it will prioritize MiCA-compliant exchange partners — those holding CASP licenses — for listing and distribution of the Qivalis euro stablecoin.
- CASP services — Custody, trading platform operation, exchange services, execution of orders, portfolio management, advice, transfer services
- NCA authorization — CASP licenses issued by national competent authority in provider's home member state
- CASP passporting — EU-wide service provision permitted after home state authorization
- Transition period — Existing crypto-asset service providers operating prior to MiCA had an 18-month transitional period to obtain CASP authorization
4. Related EU Regulatory Framework
MiCA operates alongside a broader EU digital finance regulatory stack. Institutional operators in the European stablecoin market must navigate several overlapping frameworks simultaneously:
- DORA — Digital Operational Resilience Act; ICT risk management, incident reporting, and third-party risk for financial entities including EMIs and CASPs
- DAC8 — EU tax reporting directive requiring crypto-asset service providers to report user transaction data to tax authorities
- CARF — OECD Crypto-Asset Reporting Framework; global standard for cross-border crypto tax reporting, being adopted in parallel with DAC8
- ORSA — Own Risk and Solvency Assessment; applicable to EMIs under Solvency II-adjacent governance requirements
- Transfer of Funds Regulation (TFR) — Extends travel rule to crypto-asset transfers; requires originator/beneficiary data on all transfers above €1,000
Key Framework References
- Regulation (EU) 2023/1114 — Markets in Crypto-Assets (MiCA)
- Directive 2009/110/EC — Electronic Money Directive (EMD2)
- Regulation (EU) 2022/2554 — Digital Operational Resilience Act (DORA)
- Council Directive 2023/2226 — DAC8 crypto-asset reporting
- OECD Crypto-Asset Reporting Framework (CARF)
- Regulation (EU) 2023/1113 — Transfer of Funds Regulation (TFR)