MiCA non-EUR EMT payment cap regulation

Regulation · PageRank 0.0008

Also known as: EMT 1M tx/200M EUR daily cap

Overview

MiCA restricts the use of asset-referenced tokens and of e-money tokens denominated in a non-EU currency when they are used as a means of exchange within the EU. Issuers must stop issuing the token once its use as a means of exchange within a single currency area exceeds either 1 million transactions per day or EUR 200 million in aggregate daily value, measured on a quarterly average basis. On breaching the threshold the issuer must submit a remediation plan to its national competent authority within 40 working days, showing how it will bring estimated quarterly averages back below the limits. The measure was a stated policy objective of the European Central Bank during MiCA's negotiation, aimed at limiting non-euro — in practice US dollar — stablecoin penetration of EU payment markets.

Within the DeFi Intel graph, MiCA non-EUR EMT payment cap connects to 1 tracked entity, most strongly to MiCA E-Money Token regime.

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Frequently asked questions

What are the MiCA thresholds for non-euro stablecoins used as a means of exchange?

1 million transactions per day or EUR 200 million in aggregate daily transaction value within a single EU currency area, measured on a quarterly average basis.

What happens when the threshold is breached?

The issuer must cease issuing the token and, within 40 working days, submit a plan to its national competent authority showing how it will bring the quarterly averages back below the limits.

Why was the cap introduced?

It was aimed at limiting the penetration of non-euro, chiefly US dollar-denominated, stablecoins into EU payment markets — a policy goal pressed by the ECB during MiCA's negotiation.