ESMA tells EU crypto firms to end non-compliant stablecoin services

The European Securities and Markets Authority (ESMA) says crypto firms authorised under the EU’s MiCA rules should stop services involving stablecoins that do not meet the regulation’s requirements, tightening access for EU clients. In its 8 October announcement, ESMA says national supervisors should ensure firms block access and resolve existing holdings.

The guidance covers asset-referenced tokens and e-money tokens, the two categories often called stablecoins under MiCA. It is addressed to national competent authorities, which supervise authorised crypto-asset service providers in their jurisdictions.

Which crypto services does ESMA say must stop?

ESMA says the expectation applies across MiCA-regulated services, whether firms offer them separately or together. That includes trading platforms, swaps, order execution, transfers, custody, investment advice and portfolio management.

The regulator says firms should not maintain or make these tokens available to EU clients, or help clients acquire them or increase their exposure. The ESMA opinion says warnings and client acknowledgements are not enough to address the risks from missing MiCA safeguards.

ESMA also draws a distinction between its broad supervisory expectation and whether each service counts as an offer to the public or admission to trading under MiCA. The opinion says not every service necessarily meets those definitions; it argues that continued access can still conflict with providers’ duties to act in clients’ best interests.

Can clients still withdraw or convert existing holdings?

Yes, supervisors may allow limited services to help clients exit existing positions. ESMA lists liquidation, conversion, withdrawal, transfer and safekeeping, provided those services do not enable new purchases, active trading or continued promotion of the tokens.

Those arrangements should be time-limited, clearly explained to clients and closely supervised. Firms may not use an exit period as a route to keep the tokens available to EU customers.

When must firms resolve remaining exposure?

ESMA says supervisors should require firms to address remaining legacy exposure as soon as possible, with a final deadline of three months after the opinion’s publication. Since the opinion was published on 8 October 2026, that places the outside date at 8 January 2027.

The opinion asks national authorities to assess firms in their jurisdictions and monitor whether they apply the guidance on time. Watch for how supervisors handle existing balances and whether they require firms to meet the January deadline sooner.

Source material

• 8 October announcement — esma.europa.eu
• ESMA opinion — esma.europa.eu