ESMA requires crypto firms to wind down non-compliant stablecoin operations within 3 months.

On October 8, according to Cointelegraph, the European Securities and Markets Authority (ESMA) has urged EU crypto firms to cease providing services involving stablecoins that do not comply with the Crypto-Asset Market Regulation (MiCA) framework, setting a three-month deadline to address existing risk exposures. ESMA stated that member state regulators should require relevant enterprises to resolve remaining exposure to non-compliant stablecoins by no later than January 8, 2027.

ESMA noted that crypto-asset service providers (CASPs) licensed under the MiCA framework must cease providing EU clients with services related to non-compliant stablecoins, covering activities such as trading platforms, exchange, order execution, custody, transfers, investment advice, and portfolio management. Crypto firms must implement technical, contractual, and organizational controls to prevent EU clients from acquiring or increasing positions in unauthorized stablecoins. Regulators will only permit firms to provide temporary services such as liquidation, conversion, and withdrawals under strict supervision to assist clients in exiting their existing positions.