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      ESMA Orders EU Crypto Firms to Cease Non-Compliant Stablecoin Services by January 2027

      The European Securities and Markets Authority (ESMA) has mandated that cryptocurrency companies operating within the European Union halt services related to stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA). This directive, issued on October 6, 2026, requires firms to address any existing risk exposures within three months, with a deadline set for January 8, 2027.

      ESMA's guidance applies to a range of crypto services regulated under MiCA, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management. The authority emphasized the need for crypto firms to implement robust technical, contractual, and organizational controls to prevent EU customers from acquiring or increasing exposure to unauthorized stablecoins.

      While regulators may permit limited services to help customers exit existing positions—such as liquidation, exchange, withdrawal, transfer, and custody—these activities must be temporary and closely monitored. This latest update builds on ESMA's previous guidance from January 2025, which imposed restrictions on trading and exchange services involving non-compliant stablecoins.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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