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ESMA Sets 3-Month Deadline for Unauthorized Stablecoins
ESMA said firms must use technical and contractual controls and may offer only temporary exit services for existing holders.
- On Thursday, The European Securities and Markets Authority instructed crypto-asset service providers authorized under the Markets in Crypto-Assets Regulation to cease providing services related to non-MiCA-compliant stablecoins by January 8, 2027.
- Building on January 2025 guidance, ESMA argued that services involving unauthorized assets expose customers to risks from missing issuer protections that platforms cannot independently correct.
- The guidance covers extensive services including trading platforms, custody, and order execution, requiring firms to implement technical and contractual controls to prevent clients from acquiring or increasing positions in affected tokens.
- While new activity must stop, national regulators may permit limited services to help existing customers liquidate, convert, or withdraw positions, provided these arrangements remain temporary and closely supervised.
- National regulators must monitor compliance and address remaining exposures by the three-month deadline, while ESMA has proposed amending MiCA to include an explicit legal rule permanently banning services linked to non-compliant stablecoins within the European Economic Area .
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ESMA set 8 January 2027 as the limit for European regulators to demand that the inherited exposure be resolved to non-MiCA stablecoins, while calling for a halt to purchases and new positions.
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Leaning Left0Leaning Right0Center2Last UpdatedBias Distribution100% Center
Bias Distribution
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C 100%
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