The European Securities and Markets Authority (ESMA) has urged European Union crypto firms to halt services involving stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA) framework. The regulatory body has set a deadline for companies to address existing exposures.
On Thursday, ESMA stated that national regulators should require firms to address remaining exposures to non-compliant stablecoins as soon as possible, with a final deadline of Jan. 8, 2027.
"Crypto-asset service providers (CASPs) authorised under MiCA should cease providing services related to non-MiCA-compliant stablecoins to clients in the European Union," ESMA wrote.
The guidance applies to various MiCA-regulated crypto services, encompassing trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management. According to ESMA, crypto firms must implement technical, contractual, and organisational controls to prevent EU clients from acquiring or increasing their exposure to unauthorised stablecoins.
While the directive requires stopping services, regulators may permit limited activities to help clients exit existing positions. These permitted actions include liquidation, conversion, withdrawal, transfers, and safekeeping. However, ESMA emphasized that such activities must remain temporary and closely supervised.
This latest update expands upon ESMA's previous guidance issued in January 2025, which had already called for restrictions on trading and exchange services involving non-compliant stablecoins.
