The European Securities and Markets Authority (ESMA) has called on companies to take action against stablecoins that do not comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA).
On January 17, ESMA issued a statement addressing asset-referenced tokens (ARTs), commonly known as stablecoins, urging crypto asset service providers (CASPs) to implement measures to restrict non-compliant stablecoins. However, the ESMA did not specify which stablecoins or issuers should be targeted.
The ESMA emphasized that national authorities across the EU must ensure compliance by the end of Q1 2025. This aligns with the European Commission’s guidance clarifying that issuers must be authorized under MiCA to offer stablecoins, and any third parties must obtain written consent from the issuer to offer ARTs or electronic money tokens (EMTs).
While ESMA has given CASPs until the end of Q1 2025 for full compliance, it also urged for more immediate actions, with restrictions on services for non-compliant stablecoins expected to be completed by the end of January 2025. After this date, CASPs may continue offering these assets on a “sell-only” basis, but the transition must be finished by March 31, 2025.
The move could impact Tether’s USDt, the largest stablecoin by market capitalization, as it lacks a MiCA license. Tether’s USDt is considered non-compliant under ESMA’s guidance, and CASPs may need to delist it by January 31, with no trace of USDt remaining in “sell-only” mode after March 31, 2025.
Tether has acknowledged the evolving regulatory environment but does not anticipate immediate changes for its users. Meanwhile, some industry leaders have raised concerns about the unclear application of MiCA to stablecoins. The ESMA has not yet responded to requests for comment regarding potential delistings.
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