The European Securities and Markets Authority (ESMA) has issued new guidance for crypto-asset service providers (CASPs) operating within the European Union. Firms are now required to halt all services related to stablecoins that do not meet the Markets in Crypto-Assets Regulation (MiCA) standards.
National regulators have been instructed to ensure that companies address their existing exposures to non-compliant assets by January 8, 2027. This three-month deadline applies to a broad range of services, including trading platforms, custody, order execution, investment advice, and portfolio management.
To comply with these requirements, firms must implement specific technical, contractual, and organizational controls. These measures are designed to prevent EU clients from acquiring new positions or increasing their current exposure to unauthorized stablecoins.
ESMA allows for limited exceptions to facilitate the orderly exit of existing positions. Regulators may permit activities such as liquidation, conversion, withdrawal, and transfers, provided these actions remain temporary and subject to close supervision by the authorities.
This latest directive builds upon previous guidance released by ESMA in January 2025, which initially introduced restrictions on trading and exchange services involving non-compliant stablecoins.
