Circle Exec Says EU Risks “Regulatory Own Goal” Amid MiCA–PSD2 Clash
EU stablecoin firms face a March 2026 deadline for dual licensing under MiCA and PSD2, risking high costs and stalled adoption.Summary
Stablecoin providers in the EU face a significant compliance challenge starting March 2026, as the European Banking Authority (EBA) confirmed that custody and transfer of e-money tokens (EMTs) fall under both the MiCA regulation and the existing Payment Services Directive (PSD2).
This dual licensing requirement effectively doubles capital requirements (to €250,000) and increases compliance costs for activities that should ideally be governed by a single framework, which Patrick Hansen of Circle warns is a "regulatory own goal" contradicting EU goals for unified regulation and competitiveness. The EBA's current No Action Letter provides a transition period until March 2, 2026, after which enforcement of dual licensing begins.
Industry leaders urge lawmakers to resolve this overlap by amending MiCA to include PSD2 provisions or by ensuring the upcoming PSD3 exempts MiCA-licensed firms from separate payment service rules. Failure to act could lead providers to exit the EU, slowing the growth of euro-pegged stablecoins and potentially pushing users toward unregulated alternatives.
(Source：BeInCrypto)