EU securities regulator gives crypto platforms 3 months to remove unauthorized stablecoins
The European Securities and Markets Authority (ESMA) has ordered crypto platforms to remove unauthorized stablecoins like USDT from their offerings within three months. This move enforces compliance with the EU's MiCA regulations, which mandate strict reserve and disclosure standards for stablecoin issuers.
Why it matters
This regulatory action significantly impacts the European crypto market and sets a precedent for global stablecoin oversight.
The guidance, issued as an opinion to national authorities, does not name any tokens. Tether-issued USDT is the largest stablecoin by market capitalization and the standout large-scale example of a token that’s not authorized under MiCA. PayPal USD PYUSD $0.9997 , the third-largest, is also not authorized.
MiCA’s stablecoin rules began applying in June 2024, requiring issuers of dollar-and euro-pegged tokens offered to EU users to meet authorization, reserve, redemption and disclosure requirements. ESMA refers to stablecoins as asset-referenced tokens and e-money tokens.
“ESMA considers that CASPs should not provide crypto-asset services in relation to ARTs or EMTs that are not compliant with the applicable requirements under MiCA (non-MiCA compliant ARTs or EMTs),” the regulator said, using an acronym for crypto-asset service providers.
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