The European Securities and Markets Authority (ESMA) has provided clarification on the rules regulating stablecoins not covered by the Markets in Crypto-Assets Regulation (MiCA).
ESMA's Stance on Stablecoins
ESMA has clarified that activities related to the storage and transfer of stablecoins such as Tether’s USDT do not equate to offering them to the public or admitting them to trading. These actions remain legal within the EU. ESMA, however, urges European crypto platforms to exercise caution and restrict services that facilitate the purchase of non-MiCA compliant stablecoins.
Crypto Platforms' Reactions to Regulation
European crypto platforms have welcomed ESMA's clarification, allowing them to continue offering services related to the custody and transfer of non-MiCA stablecoins. However, questions remain about what will happen if a stablecoin's compliance status changes.
Current Events with Tether
Tether has frozen $27 million worth of USDT on the Russian exchange Garantex in response to sanctions imposed on the platform for involvement in illicit activities. These measures align with global sanctions and regulatory requirements.
ESMA's new clarifications remove uncertainty for European crypto platforms, yet the ongoing MiCA regulation leaves many questions open for the industry.
