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Crypto Law/Level III · Tokens and securities law/3.3 Europe and beyond/Lesson 3

Stablecoins under MiCA: EMTs and ARTs

How MiCA treats single-currency e-money tokens and basket-backed asset-referenced tokens: who may issue them, what backs them, the ban on interest, and the caps on large non-euro tokens.

Education, not legal, tax or investment advice. Crypto law differs between countries and states and changes often. Check the current rules where you live with a qualified lawyer or tax adviser before you act.

The lean path

The cheapest, lowest-tax, simplest and most private route the law allows, best first. Each step names the rule it rests on and the condition that keeps it lawful.

  1. Holders’ cheapest exit: e-money tokens must be redeemed at any time, at par, with no redemption fee, directly by the issuer under MiCA Article 49. The catch: only coins whose issuer appears in ESMA’s register may be offered to the EU public.
  2. Builders should use an already-registered e-money token rather than issue one; issuing requires a credit institution or e-money institution licence and a white paper notified 40 working days ahead, and others may offer it only with the issuer’s written consent.
  3. Design rewards around activity, never holding time: Articles 40 and 50 treat any benefit tied to how long a token is held as banned interest, whether paid by the issuer, a service provider or a third party.
  4. Prefer euro-referenced tokens for payment features: the Article 23 cap of 1 million transactions and EUR 200 million a day applies to asset-referenced tokens and, through Article 58(3), to e-money tokens referencing non-EU currencies.

MaterialsMiCA Titles III and IV (Articles 16 to 58) on EUR-LexESMA’s Interim MiCA Register files for e-money token white papers (EMTWP.csv) and asset-referenced token issuers (ARTZZ.csv)The crypto-asset white paper of any euro- or dollar-referenced token you use, especially its redemption section

Wonder

  1. What is the legal difference between an e-money token and an asset-referenced token?
  2. Can a stablecoin issuer or an exchange pay interest to EU holders?
  3. Why can some well-known stablecoins not be offered by EU platforms?

Explore

  1. MiCA splits stablecoins into two kinds. An e-money token (EMT) is a crypto-asset that purports to keep a stable value by referencing the value of one official currency, such as the euro or the US dollar (Article 3(1)(7)). An asset-referenced token (ART) purports to keep a stable value by referencing another value or right or a combination of them, including several currencies, commodities or other crypto-assets (Article 3(1)(6)). The difference is mechanical: one currency means EMT; anything else means ART. Article 48(2) deems e-money tokens to be electronic money, so the E-Money Directive 2009/110/EC applies alongside MiCA unless MiCA says otherwise. For the US counterpart, see lesson 3.2.4.
  2. Only a credit institution or an authorised electronic money institution may issue an EMT offered to the public or admitted to trading in the EU, after notifying its authority at least 40 working days ahead and publishing a white paper (Article 48). Others may offer it only with the issuer’s written consent. Article 49 gives every holder a claim against the issuer: tokens are issued at par on receipt of funds, and must be redeemed at any time, at par, in funds, with no redemption fee. Article 54 requires at least 30% of the funds received to be kept in separate accounts at credit institutions and the rest in secure, highly liquid, low-risk instruments.
  3. An ART issuer needs an authorisation under Article 21, or must be a credit institution whose white paper is approved under Article 17. Article 35 requires own funds of at least the highest of EUR 350,000, 2% of the average reserve of assets, or one quarter of the previous year’s fixed overheads. Article 36 requires a reserve of assets that is legally segregated from the issuer’s estate, so that its creditors cannot reach it in insolvency. Article 39 gives holders a permanent right of redemption, without fees, either in funds or by delivery of the referenced assets. As of mid-October 2026, ESMA’s interim register file for authorised ART issuers contained no entries.
  4. MiCA bans yield on both kinds. Articles 40 and 50 forbid issuers, and crypto-asset service providers acting in relation to these tokens, from granting interest. Any remuneration or other benefit tied to how long a holder keeps the token counts as interest, including net compensation or discounts with an equivalent effect, whether paid directly by the issuer or by third parties. This is a trap for builders designing reward programmes around EU stablecoins: a loyalty bonus or a rebate that grows with holding time can be interest in substance.
  5. Size triggers extra rules. Article 43’s criteria for a significant token include more than 10 million holders, a value or reserve above EUR 5 billion, or more than 2.5 million transactions and EUR 500 million a day; the European Banking Authority (EBA) classifies a token as significant when at least three are met, bringing stricter requirements and EBA involvement. Article 23 adds a cap: if an ART used as a means of exchange exceeds 1 million transactions and EUR 200 million a day within a single currency area, the issuer must stop issuing and submit a reduction plan within 40 working days. Article 58(3) applies that cap to EMTs referencing non-EU currencies.
  6. As of October 2026, ESMA’s register of e-money token white papers includes, for example, Circle Internet Financial Europe SAS, supervised by France’s ACPR with a date of 1 July 2024, Paxos Issuance Europe in Finland and Société Générale-Forge; Tether’s USDT does not appear. A token whose issuer is not authorised cannot be offered to the public or admitted to trading in the EU by others, which is why platforms must check before listing. A practical check: before building a payment or trading feature around a stablecoin for EU users, find the issuer and the specific token in the register, read its redemption terms, and note whether it references the euro or another currency.

Key facts

  • Under MiCA Article 3(1)(7), an e-money token references the value of one official currency; an asset-referenced token references any other value or combination.
  • Article 48 allows only credit institutions and electronic money institutions to issue e-money tokens offered to the public in the EU.
  • Article 49 requires e-money tokens to be issued at par and redeemed at any time, at par, without a redemption fee.
  • Articles 40 and 50 prohibit issuers and service providers from granting interest on asset-referenced and e-money tokens, including benefits tied to holding time.
  • Article 35 requires asset-referenced token issuers to hold own funds of at least the highest of EUR 350,000, 2% of the average reserve, or a quarter of fixed overheads.
  • Article 23 forces an asset-referenced token issuer to stop issuing once means-of-exchange use exceeds 1 million transactions and EUR 200 million a day in a single currency area.

Exercise nine, six, three, one

9CollectList up to 9 stablecoins or stable-value tokens you have used or seen, noting what each one says it is pegged to.
6ClusterSort them into 6 categories: euro-referenced, dollar-referenced, other single-currency, multi-currency or commodity baskets, crypto-backed or algorithmic designs, and tokens whose peg you cannot confirm.
3DistillReduce the 6 categories to 3 groups: e-money tokens, asset-referenced tokens, and tokens whose MiCA status is unclear.
1CrystallizeWrite 1 sentence explaining why a reward that grows the longer someone holds an EU stablecoin can fall under MiCA’s ban on interest.

Fact check

Dates, figures and claims checked against the published sources listed below.

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