ESMA mandates end to services for non-compliant stablecoins

The European Securities and Markets Authority (ESMA) has issued an opinion requiring MiCA-authorized crypto-asset service providers to cease all services related to non-compliant stablecoins within the European Union.

The directive targets asset-referenced tokens (ART) and e-money tokens (EMT) that do not meet the standards set by the Markets in Crypto-Assets (MiCA) regulation. The scope of the prohibition extends beyond simple exchange listings to include trading, custody, transfers, investment advice, and portfolio management.

National regulators are tasked with ensuring that firms reduce client exposure to these non-compliant assets as quickly as possible. While a narrow exception allows for strictly supervised activities necessary to liquidate or close existing positions, the deadline for full compliance is set for January 8, 2027. This regulatory shift specifically impacts major liquidity providers such as USDT and PYUSD, particularly within ecosystems like Solana.