Stablecoin providers (E-Money Tokens or EMTs) in the European Union are facing a regulatory crisis due to overlapping regulations. Patrick Hansen, EU policy lead at Circle, warned of the risk that the European Banking Authority’s (EBA) current guidance could require companies to obtain dual licenses (one under MiCA and another under the Payment Services Directive, PSD2) for the same custody and transfer activity.
This regulatory duplication, confirmed by the EBA in June 2025, contradicts MiCA’s goal of creating a unified framework. The impact is severe: companies will face double capital requirements (up to €250,000) and compliance costs. Hansen warns that this undermines the EU’s competitiveness and could drastically slow the adoption of euro-denominated stablecoins, as providers might leave the market.
The industry has less than five months before the transition period ends. Attention is now focused on EU lawmakers to act quickly, either by extending the deadline or, crucially, by modifying the upcoming Payment Services Directive (PSD3) to explicitly exempt EMT activities already covered by MiCA.
Source: https://x.com/paddi_hansen/status/1984189696889479257
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