ESMA sets out supervisory expectations on services related to unauthorised stablecoins

AI summary of the source article

The European Securities and Markets Authority has published an opinion detailing supervisory expectations for crypto-asset services involving non-MiCA-compliant asset-referenced tokens and e-money tokens. Under the guidance, authorized crypto-asset service providers must stop providing all covered services related to unauthorized stablecoins to clients in the European Union, including trading, custody, exchange, and order execution. National Competent Authorities are called upon to ensure firms introduce technical, contractual, and organizational controls preventing access to these tokens. Where pre-existing exposures remain, national authorities must mandate their remediation as soon as possible and within three months of the publication.

Why it matters

The guidance sets a strict three-month timeline for crypto-asset service providers to remediate exposures and cease all standard services involving unauthorized stablecoins across the European Union.

Key facts

• CASPs authorized under MiCA must cease providing services related to non-MiCA-compliant stablecoins to clients in the European Union.
• NCAs are instructed to require remediation of pre-existing exposures no later than three months after the opinion's publication.
• Any continuation of services is strictly limited to liquidation, conversion, withdrawal, transfer, or safekeeping.