SWEDEN Law and Practice Contributed by: Niclas Rockborn, Rikard Sundstedt and Robin Entenza, Gernandt & Danielsson
6.2.2 Stablecoin Regulation Stablecoins were not explicitly regulated in Sweden before MiCA but are now subject to its extensive framework. Both asset-referenced tokens and e-mon- ey tokens (as defined in 2.2 Crypto-Asset Regulatory Frameworks ) may be considered stablecoins. For the definitions of e-money tokens and asset- referenced tokens, see 2.2 Crypto-Asset Regulatory Frameworks . E-money tokens are legally classified as funds with- in the pre-existing payments regulatory framework, similar to e-money. This dual nature – falling within both MiCA and the payments framework – has caused regulatory friction, addressed by the EBA’s no-action letter in June 2025 (see 6.1 Fiat Currency and Algo- rithmic Stablecoins ). Asset-referenced tokens are regulated as a distinct category of financial assets. They do not fall under the payment services regulatory framework but are instead subject to a bespoke regime established under MiCA. This bespoke regime is characterised by fundamentally different priorities, concerns and inter- ests than the payment services regime. For example, MiCA imposes transaction caps for asset-referenced tokens which, if exceeded, require the issuer to refrain from issuing additional tokens and submitting a plan to the competent authority for how to reduce the transactional volumes below the maximum threshold. These transaction caps are intended to function as a safeguard to prevent asset-referenced tokens from becoming a widespread substitute for official cur- rencies within a currency area, which could threaten monetary sovereignty and financial stability. 6.2.3 Backing Assets Funds received in exchange for e-money tokens must be safeguarded by depositing at least 30% in separate accounts with credit institutions, with any remainder invested in secure, low-risk, highly liquid financial instruments with minimal market, credit and concentration risk. Issuers of asset-referenced tokens are required to maintain a reserve of assets that is legally segregated from their own assets that is sufficient to cover the
the decision, owing (inter alia) to uncertainty regarding rights in rem in relation to blockchain transactions and
to the volatile nature of Bitcoin. Other Government Initiatives
The Swedish Central Bank ( Riksbanken ) is currently assessing the possibility of establishing and backing an e-currency: the e-krona. The e-krona is envisaged as a retail CBDC, ie, a central bank digital currency that is available to the general public. For a number of years (2020–2024), Riksbanken was running a pilot project with a third-party provider to develop a blockchain-based e-krona platform. The pilot comprised four phases of analysis, testing and evaluation, with the final results published in March 2024. No legislative initiative has been proposed to make the e-krona a reality. Riksbanken has concluded that a digital euro would generally have a positive influ- ence on the usefulness of an e-krona. One reason for this is that an e-krona would contribute to safeguard- ing the current role of the Swedish currency. Another reason is that a digital euro may reduce the cost and complexities of launching an e-krona. Thirdly, Riks- banken has expressed that a co-existing digital euro and e-krona could improve cross-border payments through interoperability. 6.2 Stablecoins 6.2.1 Fiat Currency and Algorithmic Stablecoins MiCA covers stablecoins that meet the definition of asset-referenced tokens or e-money tokens, but it does not explicitly distinguish algorithmic stablecoins from others in terms of classification. The same rules apply regardless of the stabilisation mechanism. An aspect of MiCA’s substantive regulatory require- ments that may have an impact on the practical feasi- bility of issuing algorithmic stablecoins is that, among the requirements introduced by MiCA on issuers of asset-referenced tokens, there is an obligation to have a reserve of assets covering the risks associated with the underlying asset and the liquidity risks associated with rights of redemption of the tokens. The reserve of assets is required to be legally and operationally segregated from the issuer’s own assets.
624 CHAMBERS.COM
Powered by FlippingBook