Banks

Under EMD2, e-money holders possess contractual claims arising from account agreements. MiCAR introduces a fundamentally different architecture for e-money tokens: a legal right to reimbursement that exists by operation of law, regardless of whether the holder ever contracted with the issuer. This essay examines Case C-661/22 and Article 49 MiCAR to explain why this distinction matters.

The Markets in Crypto-Assets Regulation sets licensing rules for crypto-asset service providers, but it doesn't say what happens when these middlemen deal with self-hosted wallets. The Transfer of Funds Regulation, also known as Regulation 2023/1113, answers this question about information that goes along with transfers of money and some crypto-assets. This essay looks at how the TFR sets up a framework of stricter due diligence instead of a ban. For transactions over € 1.000, it requires CASPs to check wallet ownership and add blockchain monitoring capabilities. It follows the EBA's Travel Rule Guidelines, the person-to-person exclusion in Article 2(4), and the Commission's job in Article 37 to figure out if more restrictions are needed by June 2026. As self-hosted wallets turn into gated endpoints instead of alternative pathways, lawyers and compliance experts all over Europe need to know how this framework changes the line between regulated intermediation and self-custody.

The Markets in Crypto-Assets Regulation (MiCAR) represents the European Union's response to regulate multiple categories of digital assets across different scenarios of use. While MiCAR addresses crypto-assets broadly, this essay focusses specifically on its treatment of stablecoins, with particular emphasis on E-Money Tokens (EMTs); crypto assets that maintain stable value by linking themselves to a single traditional currency via distributed ledger technology. The essay traces how the concept has developed from traditional electronic money under Directive 2009/110/EC to a specialised EMT regime. The essay also follows the authorisation requirements and reserve obligations imposed on issuers. Lastly, evaluates the practical implications of the regulation's full application since December 2024. As EUR-backed stablecoins move from being niche instruments to regulated parts of the EU, lawyers and fintech experts in Cyprus and all over Europe need to know how this framework works.