ESMA requires EU cryptocurrency companies to cease non compliant stablecoin services by January 8, 2027

The European Securities and Markets Authority (ESMA) requires EU crypto asset service providers authorized by MiCA to cease providing services to EU clients involving non compliant MiCA stablecoins and to address existing related exposures no later than January 8, 2027. This guide covers trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management. The European Securities and Markets Authority (ESMA) requires companies to take technical, contractual, and organizational measures to prevent EU clients from acquiring or increasing their exposure to unauthorized stablecoins. Regulatory authorities may allow companies to provide limited services such as clearing, conversion, withdrawal, transfer, and custody to help customers withdraw their existing positions, but such activities must be arranged on a temporary basis and subject to strict supervision. This update extends the relevant guidelines issued by the European Securities and Markets Authority (ESMA) in January 2025.