EU regulator sets January deadline for non-compliant stablecoins
The European Securities and Markets Authority (ESMA) is urging crypto asset service providers (CASPs) to take immediate action regarding non-compliant stablecoins under the new Markets in Crypto-Assets Regulation (MiCA).
In a statement issued on January 17, ESMA emphasised the need for CASPs to restrict or delist stablecoins that do not meet MiCA standards by January 31.
While the authority did not specify which stablecoins are non-compliant, it highlighted the responsibility of national competent authorities (NCAs) in ensuring compliance.
ESMA's guidance clarifies that only stablecoins issued by authorised entities can be legally offered within the EU.
“By ESMA’s definition, USDT is a non-compliant asset,” stated Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance, referring to Tether’s USDt, which lacks a MiCA license.
He added that CASPs will likely need to delist USDT (CRYPTO:USDT) by January 31, except for operations on a “sell-only” basis.
The ESMA has set a compliance deadline for the end of Q1 2025, urging CASPs to prioritise the restriction of existing services related to non-compliant stablecoins.
The regulator noted that while investors should be allowed to liquidate their positions in these assets, no new offerings should be made.
Tether has acknowledged the evolving regulatory landscape.
“We are aware of the evolving regulatory landscape under MiCA and its potential implications for the stablecoin market,” they stated.
Despite these challenges, Tether's spokesperson indicated that they do not anticipate immediate changes for users as discussions with local NCAs continue.
Industry executives have expressed concerns about ongoing confusion regarding stablecoin regulations under MiCA.
As firms work to align with these new regulations, they face pressure to clarify compliance statuses and adapt their services accordingly.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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