EU MiCA Update: 10 Authorized Stablecoin Issuers & 11 CASP Providers

10 Authorized Stablecoin Issuers

Under the MiCA regulation, 10 companies have received authorization to issue e-money tokens (EMTs), which are fiat-backed stablecoins. These authorized issuers include Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale - Forge, StabIR Ltd, and Stable Mint. Collectively, they have launched 15 EMTs, consisting of 10 euro-denominated stablecoins and 5 US dollar-denominated stablecoins.

Notably, Tether, the worlds largest stablecoin issuer (USDT), is missing from the list of authorized issuers. Despite its significant market share and dominance in the stablecoin market, Tether has not been granted MiCA approval. This raises questions regarding the balance between regulatory compliance and market positioning.

11 MiCA Authorized Crypto-Asset Service Providers (CASPs)

In addition to stablecoin issuers, MiCA also covers the operations of Crypto-Asset Service Providers (CASPs). A total of 11 companies have been granted authorization under MiCA to operate as crypto-asset service providers (CASPs) within the EU. These authorized entities include BitStaete B.V., Bitpanda, Bitpanda Asset Management GmbH, Boerse Stuttgart Digital Custody GmbH, Crypto.com, Hidden Road Partners CIV NL B.V., MoonPay Europe B.V., OKX, ZBX, and Zebedee Europe B.V. These providers are now permitted to offer services such as trading, exchange, execution, custody, and transfers, marking a significant step in the EUs regulatory landscape for digital assets.

How Fast Do Crypto Businesses Need a MiCA License?

With MiCA now fully in effect, crypto-asset service providers (CASPs), such as exchanges, must secure MiCA licenses in any EEA country by December 30, 2024. For those licensed before this deadline, they can benefit from a transition period of approximately 5 to 18 months, depending on the country.

While some speculate that CASPs might opt for countries with longer transition periods to delay compliance, the reality is the opposite. Companies are urgently seeking MiCA licenses not just for enhanced branding and trust but because its essential for continued operations.

In countries where CASPs dont hold existing licenses, they must operate under strict reverse solicitation rules. The European Securities and Markets Authority (ESMA) enforces these guidelines, which limit the ability of CASPs to serve new clients and restrict their marketing and communication with existing customers. This creates an unsustainable situation for CASPs, making compliance with MiCA a necessity for long-term success.