Circle Warns EU Stablecoin Rules Could Require Dual Licenses by March 2026
Circle cites EBA guidance to argue that MiCA’s one‑rulebook promise is at risk without targeted fixes.
Overview
- Patrick Hansen of Circle says firms handling e‑money tokens may need both a MiCA CASP authorization and a PSD2 payment license for the same custody or transfer activities starting in March 2026.
- EBA guidance acknowledges the overlap and provides a transition period until March 2026, but no permanent resolution has been adopted.
- Jeremy Allaire backs the warning, urging regulatory simplicity as providers weigh withdrawing from custody and transfer services that could slow euro stablecoin adoption.
- Proposed remedies include extending the transition for existing providers to at least 2027 and adding PSD3 carve‑outs or cross‑references so EMT activities fall under MiCA without duplicate licensing.
- CoinCentral reports firms face added costs such as €250,000 minimum capital and extra compliance obligations, with EBA allowing reuse of MiCA documentation for PSD2 applications that does not resolve the duplication risk.