EU Securities Regulator Wants Crypto Platforms to Wind Down Non-MiCA Stablecoin Services
By Unchained
AI summary of the source article
In an opinion dated October 8, the European Securities and Markets Authority (ESMA) stated that licensed crypto platforms should cease offering services tied to stablecoins lacking authorization under the EU's MiCA framework. Covering both asset-referenced tokens and e-money tokens, ESMA expects national authorities to address remaining exposures within three months. Covered services include trading, exchange, order execution, advice, transfers, custody, and portfolio management. While orderly wind-down services such as selling, converting, or withdrawing may temporarily continue under close supervision, new purchases and active trading are prohibited to protect compliant issuers and investor confidence.
Why it matters
Allowing non-compliant stablecoins on licensed platforms risks undermining MiCA's reserve, governance, and redemption rules while placing authorized issuers at a disadvantage.
Key facts
- ESMA expects national regulators to resolve legacy customer exposures to unauthorized stablecoins within three months.
- The directive prohibits services allowing EU clients to buy, trade, swap, or increase positions in non-MiCA asset-referenced and e-money tokens.
- Permitted transitional activities are restricted to orderly wind-down actions, including selling, converting, transferring, withdrawing, or safekeeping.