ESMA orders EU crypto firms to halt non-compliant stablecoin services within 3 months.

The European Securities and Markets Authority (ESMA) has issued guidance requiring EU crypto firms to cease services involving stablecoins that do not comply with the Markets in Crypto-Assets (MiCA) framework, and set a three-month deadline to address existing exposures. ESMA noted that national regulators should mandate relevant firms to resolve remaining exposures to non-compliant stablecoins as soon as possible, with a hard deadline of January 8, 2027. The guidance applies to crypto services under MiCA oversight, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management. ESMA stated that crypto firms must implement technical, contractual, and organizational control measures to prevent EU clients from accessing or increasing their exposure to unauthorized stablecoins. Regulators may permit limited services to assist clients in exiting existing positions, including liquidation, exchange, withdrawals, transfers, and custody, though such activities must be temporary and closely monitored. This update expands on guidance ESMA issued in January 2025, which previously required restrictions on trading and exchange services involving non-compliant stablecoins.