EU to Phase Out Unauthorized Stablecoins Under MiCA by Jan. 8
Summary
- The European Union said it will tighten regulations on stablecoins that do not comply with MiCA, its crypto markets law.
- ESMA said digital-asset service providers in the EU must stop offering services tied to unauthorized stablecoins and unwind existing positions by Jan. 8.
- ESMA said crypto firms should establish technical and contractual controls to prevent EU clients from making new purchases of unauthorized stablecoins or expanding existing holdings.
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The European Union is tightening regulation of stablecoins that do not comply with its Markets in Crypto-Assets regulation, or MiCA.
The European Securities and Markets Authority urged digital-asset service providers in the EU to stop offering services related to stablecoins that fail to comply with MiCA, Cointelegraph reported on Oct. 8.
ESMA also asked national regulators to unwind existing client positions and related services tied to those stablecoins as quickly as possible, setting Jan. 8, 2027 as the final deadline.
The rules apply not only to digital-asset trading platforms and exchange services, but also to order execution, custody, transfers, investment advice and portfolio management.
ESMA emphasized that crypto firms should establish technical and contractual controls to prevent EU clients from making new purchases of unauthorized stablecoins or increasing their holdings.
It added that services supporting the liquidation, exchange, withdrawal and transfer of existing holdings may be allowed on a temporary basis. Those measures, however, must take place under strict supervision by national regulators.
Uk Jin
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