CoinDesk
ESMA told national authorities that authorized crypto platforms must stop offering services that let EU customers buy, trade, swap or otherwise increase holdings of stablecoins that do not comply with MiCA. Regulators should ensure remaining customer holdings are resolved as soon as possible and no later than three months after the opinion’s publication, setting an outer deadline of Jan. 8, 2027.
The guidance does not name tokens. Tether’s USDT, the largest stablecoin by market value, is a prominent example of a stablecoin not authorized under MiCA. Platforms may provide limited services during the wind-down, including selling, converting, withdrawing, transferring or safeguarding existing holdings, but not purchases or continued trading access.
Why it matters
MiCA’s stablecoin rules have applied since June 2024, requiring issuers of dollar- and euro-pegged tokens offered to EU users to meet authorization, reserve, redemption and disclosure requirements. ESMA says keeping noncompliant stablecoins available through authorized platforms would weaken those protections.
The opinion is directed to national regulators, which will determine how individual platforms handle remaining client balances within the three-month limit. Some users may be able to sell or withdraw USDT during the wind-down; others could face an earlier platform cutoff.
Market impact
The guidance narrows how EU-authorized platforms can support USDT and other stablecoins that fail MiCA requirements. It does not impose a single platform-by-platform schedule: users will need to follow their exchange’s instructions for resolving existing holdings.
The permitted wind-down services preserve limited options for existing customers, but do not allow platforms to promote affected tokens, facilitate new purchases or keep them available for trading.
Frequently asked questions
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What must EU-authorized crypto platforms stop offering?
They must stop services that let EU customers buy, trade, swap or otherwise increase holdings of stablecoins that do not comply with MiCA.
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What is the deadline for resolving existing customer holdings?
National regulators should ensure holdings are resolved as soon as possible and no later than three months after ESMA's opinion was published. The stated outer deadline is Jan. 8, 2027.
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Does ESMA's guidance specifically name USDT?
No. The guidance does not name tokens. Tether's USDT is identified as a prominent example of a stablecoin not authorized under MiCA.
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What can platforms allow customers to do during the wind-down?
Platforms may provide limited services to sell, convert, withdraw, transfer or safeguard existing holdings. They cannot support new purchases or continued trading access.
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Who decides how exchanges handle remaining stablecoin balances?
National regulators will decide how individual platforms handle remaining customer balances within the three-month outer limit. Users may face different platform cutoff dates.
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