The European Securities and Markets Authority (ESMA) is calling on firms to take measures to restrict stablecoins that do not comply with the EU’s new Markets in Crypto-Assets Regulation (MiCA).
Role of National Competent Authorities
ESMA emphasized the importance of national competent authorities (NCAs) in helping crypto-asset service providers (CASPs) comply with MiCA requirements. The EU guidance prohibits offering stablecoins by unauthorized issuers, and NCAs are responsible for ensuring this compliance.
Deadlines and Restrictions for CASPs
CASPs must adhere to the new requirements no later than the end of the first quarter of 2025. However, ESMA expects quicker actions, with some restrictions to be completed by the end of January 2025. Current services to sell non-compliant MiCA stablecoins may continue on a 'sell-only' basis until the end of Q1 2025.
Tether and Other Stablecoins Situation
According to ESMA, stablecoins like Tether's USDt (USDT) are subject to restrictions in the EU, as they do not comply with MiCA. Juan Ignacio Ibañez of the MiCA Crypto Alliance noted that Tether lacks a license in the EU and called for the delisting of USDT by the end of January 2025, except for 'sell-only' operations.
ESMA continues to push for compliance with new crypto asset regulations in the EU, aiming to reduce investor risks and increase market transparency.
