The European financial regulator called on crypto-asset service providers (CASP) to limit access to stablecoins that don’t comply with the EU’s Markets in Crypto-Assets (MiCA) regulation by January 31, 2025.
The European Securities and Markets Authority (ESMA) requested crypto service providers to restrict the circulation of unlicensed crypto-assets classified as asset-referenced tokens (ART) and electronic money tokens (EMT) under MiCA. This includes all unlicensed stablecoins.
CASPs must cease all activities enabling the purchase of unlicensed ARTs and EMTs, such as trading and order execution, by the end of January 2025. However, providers must allow the sale or conversion (sell only) of these assets until March 31, 2025.
The regulator recommended running informational campaigns to educate users about upcoming changes and implementing technical solutions to simplify liquidation or conversion of positions into MiCA-compliant assets.
The ESMA also emphasized the role of EU national competent authorities (NCA) in monitoring CASPs’ compliance with the European Commission’s latest recommendations.
The final technical standards and guidelines on MiCA were published by the ESMA in late December 2024, and the MiCA regulation officially came into effect on December 30, 2024. MiCA establishes uniform rules for crypto-asset service providers across Europe.
