ESMA tells EU crypto firms to wind down non-compliant stablecoin services

On 8 October, the European Securities and Markets Authority (ESMA) said crypto-asset service providers authorised under the EU’s Markets in Crypto-Assets Regulation (MiCA) should stop services tied to stablecoins that do not meet MiCA requirements. The ESMA announcement sets expectations for national supervisors on how firms should handle those tokens and existing client holdings.

Which stablecoins and services does ESMA mean?

ESMA’s opinion covers asset-referenced tokens and e-money tokens, the two MiCA categories commonly called stablecoins. It defines non-compliant tokens as those that do not meet the conditions for a lawful public offer or admission to trading in the EU, including applicable exemptions or transitional arrangements.

The guidance applies across MiCA-regulated services: running a trading platform, exchanging tokens, executing or transmitting orders, placing tokens, giving advice, transferring or holding assets, and managing portfolios. ESMA says supervisors should consider whether a firm’s services, alone or together, let EU clients acquire, trade, exchange, or maintain exposure to a non-compliant token.

That reach matters because the opinion does not depend on every service itself qualifying as an offer to the public or admission to trading. ESMA says authorised firms should not use their services to keep such tokens accessible or usable in the Union. It points to missing issuer-level protections under MiCA, including applicable redemption rights, reserve or safeguarding requirements, governance, disclosures, and ongoing supervision.

What must firms and supervisors do with existing holdings?

National competent authorities should assess firms in their jurisdictions and ensure they use technical, contractual, and organisational controls to prevent access to non-compliant tokens, including new purchases or increased positions. Think of the controls as gates across the service: restricting one trading pair would not address access through custody, transfers, or another service.

ESMA also says client warnings and acknowledgements are not enough. Its reasoning is that disclosures cannot replace protections that MiCA requires from issuers, or reliably convey the risks created by their absence.

For holdings clients already have, supervisors should require remediation as soon as possible and within three months of the opinion’s publication. The ESMA opinion allows narrowly limited, time-bound residual services to protect clients and wind down positions. These may include liquidation, conversion, withdrawal, transfer, or safekeeping, but should not enable new purchases, promotion, or continued trading. Supervisors are expected to monitor how firms apply the guidance.

Sources and documents

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