ESMA tells MiCA crypto firms to drop non-compliant stablecoins within three months
An October 8 opinion says licensed providers should stop trading, custody and transfer services for stablecoins that lack MiCA compliance.
REGULATIONSTABLECOINS & CBDC
Lukas Brenner
10/8/20261 min read
The European Securities and Markets Authority on October 8 published an opinion on crypto-asset services involving stablecoins that do not comply with the Markets in Crypto-Assets Regulation. It covers asset-referenced tokens and e-money tokens without a lawful public offer or admission to trading in the EU. ESMA says MiCA-authorized providers should stop offering services in these tokens to EU clients.
The scope is broad: trading platforms, exchange, order execution, placing, advice, custody, transfer and portfolio management. ESMA relies on Article 66(1) of MiCA, which requires providers to act in clients' best interests, and presumes that servicing such tokens is incompatible with it. Warnings, disclosures or client acknowledgements are not considered an adequate remedy.
Legacy exposures must be resolved as soon as possible and no later than three months after October 8. Only time-limited sell-only, conversion, transfer or withdrawal functions may remain where needed to protect clients. The opinion goes further than ESMA's January 2025 statement, which allowed custody and transfer to continue. It does not name specific tokens.
Source: Lovguiden.