ESMA Mandates Crypto Providers Cease Services for Non-Compliant Stablecoins

Key Facts

1ESMA issued an opinion requiring crypto-asset service providers to cease all services for stablecoins that do not comply with MiCA regulations.

The European Securities and Markets Authority (ESMA) issued an opinion requiring crypto-asset service providers to cease all services for stablecoins that do not comply with MiCA regulations. TradingView reported that the regulator clarified that authorized providers must stop offering trading, custody, and investment advice for asset-referenced or e-money tokens that fall outside the new regulatory framework.

The mandate aims to ensure full enforcement of MiCA rules by preventing exchanges from bypassing regulations through the mere removal of specific trading pairs while maintaining other services for non-compliant tokens. This move increases regulatory pressure on stablecoin issuers and exchanges within the European Union, following previous mandates such as the 60% reserve floor requirements for USDC.