ESMA Calls for Compliance with Stablecoin Regulations by End of Q1 2025
The European Securities and Markets Authority (ESMA) has instructed EU member states to ensure that exchanges cease trading non-compliant stablecoins within two months. Key points include:
- Crypto asset service providers (CASPs) must comply with stablecoin regulations by the end of Q1 2025.
- CASPs must stop offering crypto-assets classified as Asset Referenced Tokens (ARTs) and Electronic Money Tokens (EMTs) if the issuer is unauthorized in the EU.
- This regulation impacts stablecoins like Tether's USDT when offered to EU clients, especially since Tether discontinued its euro stablecoin, EURT, due to licensing issues.
- Circle obtained an e-money license in July, while exchanges like Gemini and Coinbase need to delist unauthorized stablecoins.
- Coinbase confirmed it will restrict services related to non-compliant stablecoins starting December 13, 2024, with future assessments for re-enabling compliant tokens.
ESMA's actions aim to enforce compliance with the MiCA framework across the EU's cryptocurrency landscape.