ESMA Tightens Rules on Non-MiCA Stablecoins Beyond Spot Delistings

The European Securities and Markets Authority (ESMA) has published an opinion requiring EU regulators to examine the entire customer journey for non-MiCA compliant stablecoins, not just spot trading delistings. The opinion, dated October 8, aims to close loopholes that allow customers to acquire affected tokens through alternative routes after a trading pair is removed.

Under the guidance, crypto providers must check whether customers can still acquire non-compliant stablecoins elsewhere on their platforms and must close those alternative routes. They must also prevent existing holders from increasing their positions. ESMA stated that warning customers about risks is insufficient because the problem lies with the stablecoin itself and cannot be resolved by adding a disclaimer at the point of sale.

The requirements extend beyond crypto exchanges to brokers, custodians, and portfolio managers, who must also prevent EU clients from gaining new exposure to these tokens.

ESMA: Three-Month Exit Period for Existing Holders

National regulators are expected to give providers until January 8, 2027, to wind down services involving affected stablecoins. During this transition period, customers who already hold the tokens should be able to sell or move them elsewhere. Platforms may continue holding existing balances temporarily, but only to support an orderly exit. The transition period is not an extension of normal trading; providers must block additional purchases and stop promoting the affected tokens to EU clients.

Enforcement Left to National Regulators

ESMA has not introduced a new law or published a list of stablecoins that service providers must remove. Instead, it has given national regulators a common approach to enforcing MiCA against services involving non-compliant tokens. Each provider will have to determine which stablecoins it can continue offering in the EU, accounting for the token's regulatory status and any exemption or transitional period that may apply. Once a token is identified as non-compliant, the provider must determine where customers can still gain exposure and block new purchases through those channels, while giving existing holders time to exit.

Which Stablecoins Can Remain in the EU?

Under MiCA, a stablecoin is non-compliant if it qualifies as an asset-referenced or e-money token but has not been lawfully offered or admitted to trading in the EU. This generally means that its issuer lacks the required EU authorisation, although exemptions and transitional arrangements may apply. ESMA first told crypto providers in January 2025 to restrict purchases of such tokens and move them to sell-only trading by the end of the first quarter. Its latest guidance goes further by requiring firms to remove access across their wider services, not only from exchange order books. MiCA-compliant stablecoins can remain available. Circle's USDC and EURC, issued in the EU through its authorised French entity, are among the tokens that can continue to be offered under the regime.