MiCA Compliance: What It Means for Olbra

The European Union’s Markets in Crypto-Assets (MiCA) regulation is the most comprehensive crypto regulatory framework in the world. For stablecoin issuers, MiCA creates both obligations and opportunities. This piece explains what MiCA is, what it actually requires, and why we’ve been positioning the entire stack for full compliance from the beginning.

What MiCA is

MiCA is the EU’s harmonized framework for crypto-asset issuers and service providers, adopted in 2023. It is the first major jurisdiction to replace a patchwork of national rules with a single regime: one passport, one set of obligations, twenty-seven member states.

For stablecoins, MiCA distinguishes between Asset-Referenced Tokens (ARTs), which reference a basket of assets, and E-Money Tokens (EMTs), which reference a single fiat currency. PLNY, EURY, and USDY are all EMTs: digital representations of their respective fiat currencies.

Key requirements for EMT issuers

MiCA imposes a substantial set of obligations on EMT issuers. The issuer (or its licensed partner) must be authorized as either a credit institution or an electronic money institution within an EU member state. At least 30% of reserves must sit as deposits in credit institutions, and reserves cannot be invested in risky assets. Holders must have the right to redeem at par at any time, with priority claims on reserves in case of issuer insolvency. A detailed white paper with prescribed disclosures must be published. And there are minimum own-funds requirements scaled to the size of the issued tokens.

Why this matters, even from a crypto-native perspective

Some in the crypto industry view regulation skeptically. We see it differently. MiCA-compliant tokens can operate freely across all 27 EU member states; non-compliant issuers face severe restrictions or outright bans. Banks, asset managers, and corporations can only work with regulated entities; compliance is what unlocks enterprise use cases. The reserve, redemption, and disclosure requirements protect users by design. And operating in regulatory grey zones creates existential risk for an issuer; building to comply is what lets the system run for decades, not quarters.

Our compliance posture

We are not waiting for enforcement deadlines to build compliant infrastructure. The EMTs are issued through a licensed EU EMI partner under MiCA; that partnership is what gives PLNY, EURY, and USDY their regulatory home. The reserve model already exceeds MiCA’s minimum: bank deposits sit well above the 30% floor, and only short-duration sovereigns are held alongside. Redemption infrastructure ensures any user can convert to fiat at par, with documented processes and timelines. The white paper, proof-of-reserves, and audit reports meet or exceed MiCA disclosure requirements.

What this means for users

For an EMT holder, MiCA compliance is concrete. Your tokens are issued by a regulated entity under a clear legal framework, with no ambiguity about their status. The right to redeem at par is enshrined in law, not just in terms of service. In the unlikely event of issuer trouble, MiCA gives token holders priority claims on reserve assets. And compliant tokens can be used across regulated financial services (banks, payment processors, institutional platforms) in a way that grey-zone tokens cannot.

Looking ahead

MiCA’s stablecoin provisions became applicable in June 2024, with full enforcement ramping through 2025 and into 2026. We see the regime as a competitive advantage. While some issuers are scrambling to adapt, we’ve been building to compliance from the start, creating infrastructure designed to serve European users for decades, not until the next enforcement cycle.

More on the compliance posture, or read about the three stablecoins.