The European Securities and Markets Authority has issued an opinion telling crypto firms in the European Union to stop offering services involving stablecoins that do not comply with the Markets in Crypto-Assets framework, or MiCA. The watchdog also set a three-month window for firms to deal with existing risk exposure.
ESMA said on Thursday that national regulators should require affected companies to address any remaining exposure to non-compliant stablecoins as soon as possible, and no later than Jan. 8, 2027. The guidance applies to crypto-asset services regulated under MiCA, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management.
The regulator said firms should put in place technical, contractual, and organizational controls to prevent EU clients from gaining or increasing exposure to unauthorized stablecoins. At the same time, supervisors may allow limited services to help clients exit existing positions, such as liquidation, conversion, withdrawals, transfers, and custody, as long as those activities remain temporary and are closely monitored. ESMA said the latest update expands guidance it issued in January 2025, when it called for limits on trading and exchange services involving non-compliant stablecoins.
The European Securities and Markets Authority (ESMA) has issued an opinion requiring crypto firms in the European Union to stop offering services involving stablecoins that fall outside the Markets in Crypto-Assets (MiCA) framework, while giving them three months to address existing risk exposure.
ESMA said on Thursday that national regulators should require affected firms to deal with any remaining exposure to non-compliant stablecoins as soon as possible, and no later than Jan. 8, 2027.
Guidance covers a broad range of crypto services
The opinion applies to crypto-asset services regulated under MiCA, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management.
ESMA said crypto firms should adopt technical, contractual, and organizational controls to prevent EU clients from obtaining or increasing exposure to unauthorized stablecoins.
Temporary services may be allowed for position exits
Regulators may permit limited services to help clients exit existing positions, including liquidation, conversion, withdrawals, transfers, and custody, but those activities must be temporary and subject to close supervision.
The update expands guidance ESMA released in January 2025, when it said trading and exchange services involving non-compliant stablecoins should be restricted.
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