ESMA requires EU crypto firms to cease non-compliant stablecoin services within 3 months.

October 8: The European Securities and Markets Authority (ESMA) issued an opinion requiring EU crypto firms to stop providing services involving stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA) framework, and gave a three-month deadline to address existing exposures. ESMA stated that national regulators should require relevant firms to promptly address remaining exposures to non-compliant stablecoins, and no later than January 8, 2027. The guidance applies to crypto services under MiCA regulation, including trading platforms, exchange services, order execution, custody, transfer, investment advice, and portfolio management.

ESMA stated that crypto firms should implement technical, contractual, and organizational control measures to prevent EU clients from gaining or increasing exposure to unauthorized stablecoins. Regulators may allow limited services to help clients exit existing positions, including liquidation, exchange, withdrawal, transfer, and custody, but such activities must be temporary and closely supervised. This update expands on ESMA's guidance published in January 2025, when it required restrictions on trading and exchange services involving non-compliant stablecoins.