The European Securities and Markets Authority (ESMA) has recently issued a call to national authorities within the European Union (EU) to take immediate steps to prevent non-compliant stablecoins from being traded on exchanges. This directive requires action within the next two months, highlighting the increasing urgency for compliance in the rapidly evolving crypto landscape.
In a formal statement released on Friday, ESMA advised the 27 EU member states to ensure that crypto asset service providers (CASPs) adhere to its rules concerning stablecoins by the end of the first quarter of 2025. The regulator’s guidance aims to reinforce the standards set forth under the Markets in Crypto-Assets (MiCA) framework.
ESMA specifically noted that CASPs operating trading platforms for crypto-assets must cease the trading of all crypto-assets that would qualify as asset-referenced tokens (ARTs) and electronic money tokens (EMTs), unless the issuer has received the necessary authorization within the EU. This stipulation directly targets what ESMA refers to as “non-MiCA compliant ARTs and EMTs.” The implication is clear: absent adherence to these regulations, popular stablecoins like Tether’s USDT could face restrictions if offered to EU clients.
Notably, major stablecoin issuers have begun to adapt to these regulatory requirements. For instance, Tether announced in November that it would discontinue its euro stablecoin, EURT, due to challenges in obtaining an e-money license for EU operations. Conversely, Circle has successfully secured an e-money license as of July, positioning itself favorably within the evolving regulatory framework.
According to ESMA’s statement, registered exchanges in the EU, such as Gemini and Coinbase, will need to delist any unauthorized stablecoins. Coinbase has already made commitments to remove non-compliant tokens from its platform, emphasizing their commitment to uphold regulatory standards. A spokesperson from Coinbase confirmed that the exchange has limited services related to unstablecoins that do not align with MiCA requirements since December 13, 2024.
As compliance timelines draw nearer, the crypto community is urged to stay informed and proactive in response to these developments. Adaptations in the stablecoin market are anticipated, making it crucial for issuers and investors alike to recognize the importance of adhering to regulatory frameworks, both for the integrity of their operations and the protection of the investors they serve.
For further insights on the implications of the EU’s stablecoin regulations, consider reading the detailed analysis found here.
