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Jan 21, 2025 upd. 22 Jan
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ESMA Calls for Compliance with Stablecoin Regulations by End of Q1 2025

1 min

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.