The European Securities and Markets Authority (ESMA) has set strict deadlines for crypto firms to act against non-compliant stablecoins under the new Markets in Crypto-Assets Regulation (MiCA).

In an official statement, ESMA urged crypto asset service providers (CASPs) to take urgent action by January 31 to restrict or delist stablecoins that do not meet MiCA’s standards.

The ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’s latest push has placed crypto service providers under pressure as it stresses the need for swift alignment with MiCA, which officially governs the issuance and management of stablecoins in the European Union.

The Role of National Regulators

The authority’s communication highlighted the important role of EU national regulators, known as National Competent Authorities (NCAs), in ensuring CASPs adhere to the new rules. While no specific stablecoins were named, major industry players such as Tether’s USDT could be subject to the restrictions due to its lack of MiCA authorization.

According to the latest guidance from the European Commission, only stablecoins issued by authorized entities can be legally offered in the EU. This means that any crypto asset service provider offering non-compliant stablecoins risks violating the MiCA regulations.

Importantly, CASPs must now refrain from listing or promoting these non-compliant tokens unless they transition to a “sell-only” model, a provision intended to reduce market disruptions.

Tether’s USDT Faces MiCA Scrutiny

Tether, which operates the largest stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term by market cap, USDT, has come under scrutiny. A member of the MiCA Crypto Alliance reportedly confirmed that USDT does not currently hold the necessary MiCA license, Cointelegraph reported. As a result, he suggested that CASPs must act quickly to delist USDT, with a hard deadline of March 31 for any stablecoin to be offered under "sell-only" conditions.

Meanwhile, the crypto industry has voiced concerns that the interpretation of the regulatory framework remains unclear, particularly regarding which tokens are considered compliant or non-compliant.

The ESMA’s call to action highlighted a significant shift in the regulatory landscape, emphasizing the need for swift changes. Firms that fail to comply by the end of Q1 2025 could reportedly face further restrictions.

The European Securities and Markets Authority (ESMA) has set strict deadlines for crypto firms to act against non-compliant stablecoins under the new Markets in Crypto-Assets Regulation (MiCA).

In an official statement, ESMA urged crypto asset service providers (CASPs) to take urgent action by January 31 to restrict or delist stablecoins that do not meet MiCA’s standards.

The ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’s latest push has placed crypto service providers under pressure as it stresses the need for swift alignment with MiCA, which officially governs the issuance and management of stablecoins in the European Union.

The Role of National Regulators

The authority’s communication highlighted the important role of EU national regulators, known as National Competent Authorities (NCAs), in ensuring CASPs adhere to the new rules. While no specific stablecoins were named, major industry players such as Tether’s USDT could be subject to the restrictions due to its lack of MiCA authorization.

According to the latest guidance from the European Commission, only stablecoins issued by authorized entities can be legally offered in the EU. This means that any crypto asset service provider offering non-compliant stablecoins risks violating the MiCA regulations.

Importantly, CASPs must now refrain from listing or promoting these non-compliant tokens unless they transition to a “sell-only” model, a provision intended to reduce market disruptions.

Tether’s USDT Faces MiCA Scrutiny

Tether, which operates the largest stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term by market cap, USDT, has come under scrutiny. A member of the MiCA Crypto Alliance reportedly confirmed that USDT does not currently hold the necessary MiCA license, Cointelegraph reported. As a result, he suggested that CASPs must act quickly to delist USDT, with a hard deadline of March 31 for any stablecoin to be offered under "sell-only" conditions.

Meanwhile, the crypto industry has voiced concerns that the interpretation of the regulatory framework remains unclear, particularly regarding which tokens are considered compliant or non-compliant.

The ESMA’s call to action highlighted a significant shift in the regulatory landscape, emphasizing the need for swift changes. Firms that fail to comply by the end of Q1 2025 could reportedly face further restrictions.