The European Securities and Markets Authority (ESMA) has called on cryptocurrency service providers operating in the European Union to cease offering stablecoins that do not comply with the requirements of the Markets in Crypto-Assets (MiCA) Regulation.
The restrictions apply to transactions involving asset-referenced tokens (ARTs) and electronic money tokens (EMTs) whose issuers do not meet the requirements set out in European legislation.
The new guidance applies to cryptocurrency exchanges, exchange service operators, custodial firms, investment advisers and other digital asset service providers authorised to operate under MiCA.
ESMA requires national regulatory authorities to ensure that not only the direct trading of such tokens ceases, but also the provision of services enabling clients to acquire them or increase existing positions.
However, the regulator permits the temporary continuation of transactions necessary for the sale, conversion, transfer or withdrawal of digital assets that have already been acquired.
If clients still hold positions in stablecoins that do not meet MiCA requirements, national supervisory authorities must ensure these are settled as soon as possible, but no later than three months from the date of publication of the opinion. The new requirements impose additional conditions on the operation of global cryptocurrency platforms in the European market. Operators must monitor the compliance of the tokens they support with European legislation, as well as implement technical and organisational mechanisms to restrict transactions involving unauthorised assets.
The MiCA Regulation establishes a unified regulatory framework for the EU cryptocurrency market, setting out requirements for issuers of digital assets, cryptocurrency exchanges, custodial services and other industry participants. The transitional period for the licensing of cryptocurrency service providers at EU level ended on 1 July 2026.
ESMA is an independent body of the European Union responsible for regulating and coordinating the supervision of financial markets. Its remit covers capital markets, investor protection, financial infrastructure and the regulation of crypto-assets.