MiCA Stablecoin Regime

Date: 05.07.2024

Markets in Crypto Assets (MiCA) is a draft law on the regulation of cryptocurrencies in the European Union. MiCA defines digital assets and distinguishes three types:
1. asset-referenced tokens (ARTs);
2. electronic money tokens (EMTs); and
3. other tokens that are neither ARTs nor EMTs. (In the language of the legislation of the Republic of Kazakhstan, we are talking about unsecured digital assets. Or rather, this was the case before the amendments to the Law "On Digital Assets in the Republic of Kazakhstan" were introduced within the framework of the Bill on State Statistics).

The main difference between ARTs and EMTs is the underlying peg:

1. Section III ARTs are a type of digital asset that is not an electronic money token and that seeks to maintain a stable value by referencing another value (e.g. gold and digital assets) or right, or a combination of both, including one or more fiat currencies (e.g. a basket of currencies).

2. Section IV EMTs are a type of digital asset that seeks to maintain a stable value by referencing the value of a single fiat currency. The rules applicable to EMTs and ARTs (referred to in this block as “stablecoins” unless otherwise noted) are effective June 30, 2024.

3. The third category of MiCA tokens are “other tokens,” such as Bitcoin or Ether. The regulatory obligations for these “other tokens” will come into force on December 30, 2024, along with the regulatory framework for CASPs that offer one or more of MiCA’s ten specific services.

That is, in civilized jurisdictions such as European countries, there is a clear distinction between secured and unsecured digital assets. They should not be mixed in any way. But our domestic “geniuses” have secretly decided otherwise behind the scenes. We hope, but we highly doubt, that they are aware of the decisions they have made.

Source: https://www.chainalysis.com/blog/mica-stablecoin-regime-challenges-part-1/