ESMA gives crypto firms 3 months to exit non-compliant stablecoins

Key Facts

1ESMA urged EU crypto firms to halt services involving non-MiCA-compliant stablecoins, providing a three-month window to address exposures.

The European Securities and Markets Authority (ESMA) urged EU crypto firms to halt services involving stablecoins that are not compliant with MiCA regulations. Cointelegraph reported that the regulator provided a three-month window for crypto asset service providers to address and phase out their exposures to these assets.

The directive aims to ensure full compliance with the Markets in Crypto-Assets (MiCA) framework and mitigate risks from unauthorized stablecoins within the European market. This regulatory enforcement is expected to drive liquidity shifts away from major stablecoins that have not yet secured the necessary licensing in the European Union.