The European Securities and Markets Authority (ESMA) has issued a formal opinion targeting crypto-asset service providers (CASPs) that are authorized under the Markets in Crypto-Assets Regulation (MiCA). The notice, released on 8 October 2026, stipulates that these providers—including exchanges, brokers, and custodians—must refrain from offering services related to stablecoins that fail to comply with MiCA guidelines. This directive serves as a supervisory expectation rather than introducing new legislation.
Scope of the Expectation
ESMA’s directive specifically addresses two categories of stablecoins:
- Asset-Referenced Tokens (ARTs): These tokens are backed by a collection of assets.
- E-Money Tokens (EMTs): These are pegged to a singular official currency.
The expectation applies to all MiCA services provided to clients in the European Union, including:
- Operating trading platforms
- Exchange services
- Order execution and placement
- Receiving and transmitting orders
- Investment advice
- Transfers
- Custody and administration
- Portfolio management
This regulation emphasizes that a firm cannot merely shift a non-compliant stablecoin from one service line to another to bypass the rules.
Regulatory Oversight
In this context, ESMA has instructed national competent authorities—regulatory bodies that oversee CASPs—to ensure that these firms do not maintain, introduce, or facilitate access to non-compliant stablecoins for their clients. National regulators are expected to validate that firms implement the necessary technical, contractual, and organizational controls to prevent the acquisition or increased exposure to these tokens within the EU.
Required Actions and Timeline
Any existing exposures linked to non-compliant stablecoins must be rectified as soon as possible, with a hard deadline set for three months after the issuance of the opinion—specifically by 8 January 2027. Until this deadline, CASPs are permitted to provide limited services strictly necessary for:
- Liquidation
- Conversion
- Withdrawal
- Transfer
- Safekeeping
These interim activities must remain risk-based, time-limited, and closely monitored by regulatory authorities.
Practical Implications
It is crucial for firms still listing or holding non-compliant stablecoins to cease any new acquisitions and to strategize the winding down of existing positions before the stipulated three-month timeframe elapses. Continued services involving these tokens should be limited in nature and rigorously supervised to ensure compliance with ESMA’s expectations.
By taking these steps, CASPs can align their operations with the regulatory framework established under MiCA, fostering a more compliant and secure environment for digital asset transactions within the EU.
Sources: ESMA news page
