ESMA Demands Immediate Delisting of Non-Compliant Stablecoins
The European Securities and Markets Authority (ESMA) has urged EU countries to enforce the stablecoin rules outlined in the MiCA crypto regulation framework.
Under MiCA, stablecoins that fail to meet regulatory requirements must be made inaccessible to European users. ESMA gave national authorities a two-month deadline to address non-compliance. If these requirements are not met, ESMA may issue formal warnings or impose sanctions.
“In practice, this means that CASPs operating a trading platform for crypto-assets are expected to stop making all crypto-assets that not authorised in the EU,” ESMA stated.
The directive places significant pressure on Tether’s USDT, one of the most widely used stablecoins, which has not yet secured an EU license despite its large user base and market capitalization. Meanwhile, other issuers, such as Circle, which manages USDC, successfully obtained licensing in July 2024.
Related: Goodbye USDT? MiCA Regulations Redefine EU Crypto Trading
Leading cryptocurrency exchanges, including Coinbase, Gemini, and WhiteBIT, have already confirmed plans to delist non-compliant stablecoins for European users. These exchanges have assured users that assets can be reinstated should the stablecoins obtain the necessary licensing.
It is important to note that USDT remains technically legal within the EU for the time being, although its long-term status is uncertain.
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