ESMA Urges Firms to Act Against Non-compliant Stablecoins

The European Securities and Markets Authority (ESMA) has established strict deadlines for crypto companies to take action against stablecoins that do not comply with the new Markets in Crypto-Assets Regulation (MiCA).

In an official statement, ESMA called on crypto asset service providers (CASPs) to act promptly by January 31 and delist or restrict stablecoins that do not meet MiCA’s standards.

The latest move by ESMA has put pressure on crypto service providers as it emphasizes the urgency of aligning with MiCA, which governs the issuance and management of stablecoins in the European Union.

The communication from the authority emphasized the crucial role of National Competent Authorities (NCAs) in enforcing compliance of CASPs with the new regulations. While no specific stablecoins were singled out, major players like Tether’s USDT may be affected by the restrictions due to their lack of MiCA authorization.