ESMA Sets January 8 Deadline for Stablecoin Exposure

The European Securities and Markets Authority (ESMA) has told national regulators to require crypto firms authorized under the European Union’s Markets in Crypto-Assets rules to stop providing services that expose EU customers to stablecoins that do not comply with the regulation. Regulators should resolve remaining customer exposure as soon as possible and no later than January 8, 2027, three months after ESMA issued its opinion on October 8. The guidance covers asset-referenced tokens and electronic money tokens that fail to meet MiCA requirements. It directs national authorities to examine services that could let customers acquire, trade, retain or increase exposure to those tokens, including exchange, custody, transfer, order execution, advice and portfolio management. MiCA-authorized providers are expected to put technical, contractual and organizational controls in place to prevent customers from establishing or increasing affected positions. ESMA says customer notices or acknowledgments do not substitute for issuer protections required by the rules.