EU to expand MiCA to cover tokenization and foreign stablecoins

The European Commission is preparing draft amendments to the Markets in Crypto-Assets regulation to bring tokenization platforms and tokenized representations of real-world assets under MiCA. The proposal would also make stablecoins issued by firms outside the EU subject to MiCA obligations when they are offered or marketed to users in the bloc.

Tokenization creates digital tokens that represent ownership or rights in assets such as bonds, equities, real estate or commodities. MiCA currently applies to crypto-assets not already governed by existing EU financial law; instruments that fall under EU securities law remain outside MiCA. The draft aims to clarify how tokenized instruments are treated relative to securities rules and to assign responsibilities to issuers and service providers.

Non-EU stablecoin issuers that serve EU customers would likely face requirements similar to those for EU-based issuers. Expected obligations include disclosure of issuance documentation, rules on reserve management, clear redemption terms, operational resilience measures and anti-money-laundering checks. Firms that fail to meet the standards could be barred from offering services in the EU or required to appoint an EU-based issuer or service provider.

Trading venues, custodians and other service providers handling tokenized assets could need authorisation and to meet capital, governance and investor-protection standards. The Commission plans to coordinate any expanded MiCA rules with existing EU frameworks on securities, payment services and market infrastructure to limit overlap and conflicting obligations.

Officials expect consultations with member states, EU financial supervisors and market participants before a legislative proposal is finalised. Any amendment would then proceed through the European Parliament and the Council. The report did not provide a timetable for a formal proposal or adoption; changes would take effect only after the usual legislative approval and implementation periods.

MiCA was agreed at EU level in 2023 and created a single rulebook for many crypto-asset categories, including asset-referenced tokens and e-money tokens. The proposed expansion would extend the regulation’s reach to tokenized representations of financial and non-financial assets and to activities of issuers based outside the EU that serve customers in the bloc.