ESMA gives encryption companies 3 months to exit non-compliant stablecoin business

The European Securities and Markets Authority (ESMA) urges EU crypto companies to cease providing stablecoin services that do not comply with the framework of the Crypto Assets Market Regulation Act (CAMR), and has set a three-month deadline to address existing risk exposures.

ESMA stated on Thursday that regulatory authorities around the world should require relevant companies to address the remaining non-compliant stablecoin risk exposures as soon as possible, with a deadline no later than January 8, 2027.

ESMA writes: 'Encrypted asset service providers ( CASPs ) authorized by MiCA should cease providing services related to stablecoins that do not meet the requirements of MiCA to customers in the European Union.'

This guide covers encrypted services supervised by MiCA, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management.

ESMA indicates that crypto companies should implement control measures at the technical, contractual, and organizational levels to prevent EU customers from acquiring or increasing their exposure to unauthorized stablecoins.

Regulatory authorities may permit a limited range of services to help customers close out existing positions, including liquidation, conversion, withdrawal, transfer, and custody. However, ESMA indicates that such activities must be temporary and subject to strict supervision.

This update is an extension based on the guidelines issued by ESMA in January 2025. Previous guidelines required restrictions on transactions and exchange services involving non-compliant stablecoins.

Relevant: EU banking regulators call for the establishment of crypto lending rules under the MiCA framework