ESMA gives EU platforms three months to resolve stablecoin holdings
ESMA told EU-authorized crypto firms to stop serving stablecoins that fail MiCA rules, while national regulators oversee the resolution of existing customer holdings.
The Blocktape Editors 2 min read 4050df
The European Securities and Markets Authority (ESMA) on Oct. 8 told national regulators to require crypto firms to resolve existing EU customer holdings of stablecoins that fail the bloc’s MiCA rules within three months. Its opinion says MiCA-authorized firms must stop providing services related to those tokens, including trading, custody and transfers, according to ESMA’s announcement.
What must crypto firms stop offering?
ESMA says firms must not maintain or facilitate EU customer access to non-compliant asset-referenced tokens and e-money tokens, the two categories MiCA uses for stablecoins. The restrictions cover services that let customers acquire or increase exposure to those tokens, including operating trading platforms, exchanging assets, executing orders, custody, advice and portfolio management.
The opinion does not name specific tokens. CoinDesk reported that Tether’s USDT and PayPal USD are examples of stablecoins it says are not authorized under MiCA; ESMA’s announcement itself refers broadly to tokens that do not meet the regulation.
What happens to existing customer balances?
National competent authorities should require remaining holdings to be remediated as soon as possible and no later than three months after the opinion’s publication, ESMA said. The deadline falls on Jan. 8, 2027, according to CoinDesk’s report.
During the wind-down, firms may continue services needed to liquidate, convert, withdraw, transfer or safeguard the affected assets. ESMA says those services must be time-limited, risk-based and closely supervised; the opinion gives national regulators responsibility for overseeing the resolution of existing holdings.
How will regulators enforce the guidance?
ESMA calls on national authorities to ensure firms use technical, contractual and organizational controls to prevent access to non-compliant stablecoins through their services. Those controls should also prevent customers from acquiring more of the tokens or increasing their exposure.
The three-month period applies to resolving existing holdings identified by national regulators. ESMA says platforms may continue only the limited services needed to close out or safeguard those positions during the supervised wind-down.
Source material
- ESMA’s announcement — esma.europa.eu
- CoinDesk’s report — coindesk.com