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The European Commission has clarified how stablecoin-like asset-referenced token (ART) issuers can operate cross-border under the EU’s Markets in Crypto-Assets Regulation (MiCA), confirming that a dedicated passporting framework applies.
This new clarification comes in response to a query from France’s banking and insurance supervisor, the Autorité de contrôle prudentiel et de résolution (ACPR).
The regulator had raised concerns about ambiguities in MiCA’s provisions on notifications, information-sharing and transparency. It asked whether national competent authorities (NCAs) should consider that Articles 18, 21, 25 and 109 of the regulation set a specific passporting framework for “pure” ART issuers.
In its response, published on the European Banking Authority (EBA) website, the Commission confirmed that:
- ART issuers must be legally established in an EU member state to offer or seek admission to trading of their tokens.
- Once authorised by their home NCA, issuers can market ARTs across the EU in the member states declared at authorisation.
- Home NCAs are responsible for notifying host authorities, the European Securities and Markets Authority (ESMA), the EBA, the European Central Bank (ECB) and relevant central banks within two working days of granting authorisation.
- The ESMA public register will disclose the list of host states where ARTs are marketed or admitted to trading.
The response means no extra standalone passporting procedure is required beyond MiCA’s existing framework. This addresses concerns that issuers might need to file separate notifications or ongoing updates for each host country, and should smooth the path for non-bank stablecoin issuers going to market.
Greater clarity and transparency
The clarification is particularly significant for those non-bank stablecoin issuers, the “pure” ART issuers, as they will now have a more streamlined route to market their tokens across the EU once authorised in a single jurisdiction.
It also strengthens the role of the ESMA register as the central source of transparency for investors, trading venues and supervisors.
MiCA, the EU crypto regime, entered into force in June 2023 and began phasing in from mid-2024.
It introduces harmonised requirements for crypto-asset issuers and service providers across the bloc. However, these rules are considerably tougher than the conditions under which crypto-assets previously operated.
ARTs, which are often viewed as stablecoins pegged to multiple assets, face stricter conditions due to their potential systemic impact. However, this Q&A provides more clarity and certainty.
Once authorised in a single member state, ART issuers will be able to market their tokens across the EU without filing separate passporting applications in each jurisdiction. This removes the patchwork approach that had previously led to increased compliance costs and regulatory friction.
The responsibility for notifying other member states and EU institutions sits with the home national competent authority, not the issuer. This means firms no longer need to prepare bespoke notifications or ongoing updates themselves, making cross-border expansion more straightforward.
An accurate register
The ESMA register will serve as the single source of truth on where an ART can be marketed. The goal is for the register to build trust among exchanges, wallets and institutional investors seeking regulatory certainty before listing or integrating a token.
The additional clarity should make Europe a more attractive jurisdiction for launching stablecoins, because one licence can open access to the entire single market.
That could tempt both crypto-native issuers and mainstream financial or tech firms that were previously hesitant due to regulatory uncertainty.
Such organisations may be drawn to crypto-friendly jurisdictions that are subject to MiCA, such as Malta and Liechtenstein, as attractive locations to establish operations.
