EU Securities Regulator Wants Crypto Platforms to Wind Down Non-MiCA Stablecoin Services

What happened

EU Securities Regulator Wants Crypto Platforms to Wind Down Non-MiCA (the EU’s regulation for crypto markets) Stablecoin Services, according to Unchained. ESMA's opinion to national regulators covers every crypto service tied to unauthorized stablecoins (a digital token meant to hold a fixed value, usually one dollar) and sets a three-month limit for clearing existing exposure. The European Securities and Markets Authority ( ESMA ) issued an opinion dated Oct.

8 saying licensed crypto platforms should stop serving stablecoins that lack authorization under the EU’s MiCA rules. It expects national regulators, the opinion’s main audience, to see that any leftover customer exposure is cleaned up within three months .

The opinion covers asset-referenced tokens and e-money tokens, the two MiCA categories that include stablecoins. ESMA wrote that crypto-asset service providers (CASPs) “should not provide crypto-asset services” tied to ones that fall short of MiCA’s requirements, citing their duty under Article 66(1) to act “honestly, fairly and professionally” for clients.