The European Securities and Markets Authority has told crypto-asset service providers in the European Union to stop offering services tied to stablecoins that do not comply with the Markets in Crypto-Assets Regulation, or MiCA. In guidance published Thursday, ESMA said national regulators should ensure that remaining exposure to those unauthorised stablecoins is dealt with as soon as possible and no later than Jan. 8, 2027, effectively setting a three-month window for firms and supervisors to clean up existing positions.
The instruction applies to a broad set of MiCA-regulated services, including crypto trading platforms, exchange services, order execution, custody, transfers, investment advice and portfolio management. ESMA said firms should put in place technical, contractual and organisational controls so EU clients cannot acquire unauthorised stablecoins or increase existing exposure.
At the same time, the regulator left room for tightly limited off-ramping services. National authorities may allow temporary, closely supervised activities aimed at helping clients exit current positions, such as liquidation, conversion, withdrawals, transfers and safekeeping. ESMA said the latest position builds on its January 2025 guidance, which had already called for restrictions on trading and exchange services involving non-compliant stablecoins.
The European Securities and Markets Authority (ESMA) has told crypto firms in the European Union to stop offering services tied to stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA), while giving regulators three months to deal with existing exposure.
In guidance issued Thursday, ESMA said national regulators should require firms to address any remaining exposure to non-compliant stablecoins as soon as possible and no later than Jan. 8, 2027.
“Crypto-asset service providers (CASPs) authorised under MiCA should cease providing services related to non-MiCA-compliant stablecoins to clients in the European Union,” ESMA said.
Guidance covers a wide range of regulated crypto services
The instruction applies to crypto services that fall under MiCA, including trading platforms, exchange services, order execution, custody, transfers, investment advice and portfolio management.
ESMA said firms should put in place technical, contractual and organisational controls to stop EU clients from acquiring unauthorised stablecoins or increasing their exposure to them.
Limited exit services may still be allowed
Regulators may allow certain limited services to help clients exit existing positions. Those services include liquidation, conversion, withdrawals, transfers and safekeeping.
ESMA said those activities must be temporary and subject to close supervision.
Update builds on earlier 2025 guidance
The latest update expands on ESMA’s January 2025 guidance, which called for restrictions on trading and exchange services involving non-compliant stablecoins.
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