ESMA gives firms three months to drop noncompliant stablecoins
The European Securities and Markets Authority (ESMA) has urged crypto companies in the European Union to stop providing services involving stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA). The regulator has given firms three months to address their existing exposure.
On Thursday, ESMA said national regulators should require companies to deal with remaining exposure to such stablecoins as soon as possible and no later than January 8, 2027.
According to ESMA, crypto service providers operating under a MiCA license should stop offering EU clients services related to stablecoins that do not meet the regulation’s requirements.
Who will be affected
The guidance covers a wide range of services, including trading platforms, crypto exchange services, order execution, custody, transfers, investment advice, and portfolio management.
Companies must also introduce technical, contractual, and organizational controls to prevent EU clients from buying such stablecoins or increasing their existing exposure.
At the same time, regulators may temporarily allow a limited range of services to help clients exit these assets. These may include liquidation, conversion, withdrawals, transfers, and safekeeping. ESMA stressed that such services should only be provided on a temporary basis and under close supervision.
The new position expands on ESMA’s January 2025 guidance, when the regulator had already called for restrictions on trading and exchange services involving stablecoins that do not comply with MiCA.
What MiCA requires from stablecoins
Stablecoin issuers operating in the EU must comply with MiCA requirements. Among other things, they must obtain authorization, publish information about the token, ensure redemption rights, and maintain sufficient reserves. For e-money tokens, which include many stablecoins, the issuer must be a bank or a licensed electronic money institution, issue tokens at par value, and redeem them at the same value on demand. The funds received must be held in secure, liquid assets and kept separately.
The rules themselves may still change. In 2026, the European Commission began reviewing MiCA and held consultations with market participants and regulators to assess whether the current framework remains suitable. Following the review, Brussels could propose amendments, including changes to stablecoin regulation and the treatment of foreign issuers. The European Central Bank has also called for stricter requirements for such assets, especially when they are issued by companies based outside the EU.
As a reminder, a group backed by Circle and Hyperliquid is pushing for changes to MiCA.
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