The European Securities and Markets Authority (ESMA) issued an opinion on October 8, 2026, mandating that crypto-asset service providers (CASPs) licensed under the MiCA framework cease operations with non-compliant stablecoins by January 8, 2027.
The directive specifically targets asset-referenced tokens and e-money tokens that do not meet MiCA standards. Tether did not apply for authorization for its USDT stablecoin, citing concerns over the requirement to hold at least 60% of reserves in European bank deposits.
Licensed platforms must immediately halt new trading and prevent clients from increasing positions in non-compliant assets. Users holding USDT on these platforms have until the January 2027 deadline to sell, convert, or withdraw their holdings to self-custody wallets.
Major platforms including Coinbase, Binance, and Revolut have already taken steps to restrict USDT access for users in the European Economic Area throughout 2026. Conversely, Circle’s USDC and EURC remain available as they comply with the current regulatory requirements.
