EU regulators are expanding crypto access through the Markets in Crypto Asset Regulation (MiCAR).
MiCAR is the EU’s governing regulatory protocol which member states apply before issuing licences to crypto service firms or stablecoin providers.
To date, 53 entities have been cleared through MiCAR to operate in the EU. Approval by one member means that the licencee can operate across all 30 European Economic Area states through a passport model.
Stablecoin issuers, CASPs
That number is made up of 14 stablecoin issuers and 39 crypto asset service providers (CASPs), including companies such as Circle, Crypto.com, Stable Mint, and Société Générale – Forge.
Crypto providers have issued 20 fiat-backed stable coins for investors in the EU. Twelve are pegged to the Euro, seven to the US Dollar and one to the Czech Koruna. Germany and the Netherlands lead in licensing, together accounting for 23 of the 39 CASP approvals.
Digital TradFi alignment
By introducing consistent standards for transparency, governance and consumer protection, the EU aims to bring digital assets in line with traditional financial products.
However, a high bar for compliance also means that firms unable to meet these standards may miss opportunities to expand into Europe. Both Tether and Binance have so far been unable to secure MiCAR licences.
Nonetheless, a single market approach may inspire similar reforms in other major economic zones, including Latin America, Southeast Asia and Africa.
