SPAIN Law and Practice Contributed by: Alfonso López-Ibor Aliño, Olivia López-Ibor Jaume and Victoria Moreno Motilva, López-Ibor Abogados
Depending on their design, algorithmic stablecoins may fall within the ART framework where they ref- erence or seek to stabilise value against underlying assets or benchmarks, or otherwise be treated as general crypto-assets subject to MiCA’s broader dis- closure and conduct requirements. In practice, Span- ish regulators are expected to apply a substance- over-form approach, assessing these arrangements according to their economic function and associated risks rather than their technical terminology or market- ing characterisation. 6.2.2 Stablecoin Regulation Fiat-backed stablecoins are regulated in Spain through the directly applicable EU MiCA framework, rather than a standalone national regime. Under MiCA, these tokens are classified as electronic money tokens (EMTs) – crypto-assets designed to maintain a stable value by reference to a single fiat currency, typically the euro. EMTs are effectively integrated into the existing EU electronic money and payments architecture. Only authorised credit institutions or electronic money insti- tutions (EMIs) may issue EMTs, and they must ensure issuance and redemption at par value at all times, maintain fully backed reserve assets, and comply with safeguarding, governance, and liquidity requirements. In Spain, prudential supervision in relation to EMT issuers is carried out primarily by the Bank of Spain. MiCA overlays this payments-based framework with crypto-specific obligations, including detailed rules on reserve composition, segregation of assets, invest- ment restrictions, and enhanced governance and risk- management standards. These requirements are in several respects more prescriptive than the traditional e-money regime, reflecting financial stability concerns associated with widely used stablecoins. More broadly, MiCA distinguishes between EMTs (fiat-referenced tokens) and asset-referenced tokens (ARTs), which reference baskets of assets. While EMTs align closely with the pre-existing payments frame- work, ARTs are subject to a bespoke prudential regime focused on reserve adequacy, market integrity, and systemic risk mitigation.
In Spain, the result is a hybrid model: fiat-backed stablecoins are not regulated as a separate domestic category, but are fully embedded within a harmonised EU framework combining payments regulation princi- ples with crypto-asset-specific prudential safeguards. 6.2.3 Backing Assets Fiat-backed stablecoins – classified as electronic money tokens (EMTs) under MiCA – are subject to a strict reserve and safeguarding regime designed to ensure full and immediate redeemability at par. EMTs must be fully backed at all times by reserve assets corresponding to the total outstanding token supply. Reserve assets must be appropriately diversified, highly liquid, and low risk. In practice, eligible reserve assets primarily include cash deposits denominated in the referenced fiat currency and certain highly liquid financial instruments subject to prudential and liquid- ity requirements. Risky, volatile, or illiquid assets, including crypto-assets, are not considered appropri- ate reserve assets for EMT backing purposes. Reserve assets must be legally segregated from the issuer’s own assets and safeguarded with credit insti- tutions or other appropriately authorised custodians. Although MiCA does not impose strict geographic localisation requirements for reserve assets, super- visory expectations within the EU, including in Spain, generally favour arrangements that ensure effective regulatory oversight, operational accessibility, and adequate insolvency protection. A key structural requirement is that EMT holders may not receive interest or any form of yield on their tokens. This prohibition prevents EMTs from function- ing as deposit-like or investment products and pre- serves their character as payment instruments. Any remuneration linked to holding duration or balances would be incompatible with the EMT regime. Overall, MiCA requires fiat-backed stablecoins to operate as fully collateralised, non-interest-bearing digital equivalents of electronic money, supported by high-quality reserves, strict segregation, and robust liquidity safeguards.
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