The MiCA Crypto Alliance has welcomed the Frankencoin Association as its newest member, bringing a decentralised stablecoin project into discussions around the European Union’s crypto rules.
Frankencoin is the issuer and steward of ZCHF, a Swiss franc-pegged stablecoin that launched in 2023. The project said the token is now available across eight blockchain networks and has maintained its peg without major deviations since launch. According to the association, ZCHF is the largest Swiss franc stablecoin currently in circulation.
🤝 @MiCA_Alliance welcomes @frankencoinzchf Association as a new member.
Frankencoin Association stewards the Frankencoin protocol, the largest Swiss franc stablecoin, holding its peg since 2023 through on-chain collateral rather than a central counterparty.
🇨🇭 The Association… pic.twitter.com/v0WDFW6GQ5
— MiCA Crypto Alliance (@MiCA_Alliance) June 26, 2026
The membership comes as companies across Europe work to understand how decentralised crypto projects fit within the EU’s Markets in Crypto-Assets (MiCA) regulation. While MiCA contains detailed rules for stablecoin issuers, decentralised projects remain one of the areas where legal interpretation continues to develop, making Frankencoin’s experience relevant to regulators, exchanges and blockchain firms.
Frankencoin seeks clearer rules for decentralised stablecoins
Unlike stablecoins backed by a central issuer holding reserves, Frankencoin relies on on-chain collateral and liquidation mechanisms to maintain its value against the Swiss franc.
The association said the protocol has completed independent audits covering smart contract security, economic design and the overall system. It also published legal opinions explaining that Frankencoin is treated as a payment token under Swiss law and as a crypto-asset under MiCA. Because of its decentralised structure, the association believes several issuer obligations under MiCA do not apply to the project.
Through the alliance, Frankencoin plans to work on issues including stablecoin classification, MiCA white papers and listing requirements for crypto trading platforms across Europe.
Exchanges still face questions over decentralised tokens
One of the biggest challenges under MiCA is not only how decentralised stablecoins are classified, but how exchanges decide whether to list them. Many trading platforms now require MiCA white papers before admitting new crypto assets, even when projects argue that some regulatory exemptions apply.
That has created extra work for decentralised projects looking for access to the European market. Frankencoin said joining the alliance will help it work directly with exchanges and compliance teams on these requirements. For the crypto industry, the discussions could help shape how decentralised stablecoins are treated under MiCA as more projects find listings while remaining outside the traditional issuer model.
Meanwhile, MiCA increased pressure on firms that have yet to secure authorization. Recent approvals for companies such as OpenPayd, alongside warnings issued by French authorities to unlicensed operators, show that regulators are becoming less willing to tolerate firms operating outside the new framework.
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