The European Securities and Markets Authority (ESMA) has called on all licensed cryptocurrency platforms to cease providing services linked to stablecoins that do not have authorization under the European Union’s Markets in Crypto-Assets (MiCA) regulations. ESMA dated its opinion October 8 and directed it primarily at national regulators, emphasizing that unresolved customer exposures to non-compliant stablecoins should be fully addressed within three months.
Directive to Crypto Platforms and Regulators
ESMA’s opinion specifically addresses asset-referenced tokens and e-money tokens, the two MiCA categories used to define regulated stablecoins. The authority did not mention any particular stablecoin names in its directive but warned that crypto-asset service providers (CASPs) must not offer services involving digital assets that fail to meet MiCA’s requirements.
According to Article 66(1) of MiCA, CASPs are required to act “honestly, fairly and professionally” in the interest of their clients. ESMA highlighted that continuing to provide access to unauthorized stablecoins would breach these obligations.
ESMA underlined that crypto-asset service providers “should not provide crypto-asset services” connected to digital assets falling short of MiCA compliance, reinforcing their duty to uphold fairness and professionalism towards clients.
ESMA stressed that where regulators discover remaining “legacy exposures” to unauthorized stablecoins among customers, immediate remediation is necessary. It directed national authorities to ensure any such exposures are removed no later than three months from the opinion’s publication date—placing the deadline around January 8, 2027.
| Key Dates | Details |
|---|---|
| October 8, 2026 | ESMA issues opinion on non-compliant stablecoins |
| January 8, 2027 | Deadline for clearing customer exposures |
| June 30, 2024 | MiCA stablecoin rules come into force |
| End of Q1 2025 | Previous compliance target for platforms |
Guidance on Allowable Services
ESMA allowed that, in cases where legacy holdings still exist, service providers may perform limited actions such as selling, converting, transferring, or withdrawing the unauthorized stablecoins. These activities must be strictly time-limited and under close supervision from authorities. Regulators may approve additional narrow activities, like safekeeping, solely to facilitate the orderly wind-down of existing customer holdings.
Purchase of new assets, promotion, active distribution, trading, and maintaining broad market access are forbidden for non-compliant stablecoins. The goal is to protect investors and ensure a controlled exit from unsupported products.
Background and Ongoing Regulatory Developments
MiCA’s stablecoin rules have been applicable since June 30, 2024, as part of the first comprehensive European regulatory framework for crypto assets. The January 2025 ESMA statement had previously instructed national authorities to guarantee full compliance by the end of the first quarter of that year. In practice, these rules have led to Tether’s USDT and similar stablecoins being removed from several European exchanges.
The European Commission continues to review and update the MiCA legislation, preparing revisions to extend regulation to foreign stablecoin issuers. An update is expected in 2027, potentially broadening the rules’ scope.
ESMA, headquartered in Paris, serves as the EU’s independent authority responsible for safeguarding the stability and integrity of the financial markets within the union.
Mini dictionary: MiCA (Markets in Crypto-Assets) is the European Union’s regulatory framework for overseeing crypto assets, issuers, and service providers, aiming to provide legal clarity and harmonized standards across EU member states.
