ESMA Moves to Plug Loopholes for Non-MiCA Stablecoins Beyond Spot Delistings
A crypto exchange can remove a non-MiCA stablecoin from its order book and still leave other ways for customers to buy it. ESMA now wants platforms to close those routes as well.Under an opinion published on October 8, EU regulators should examine the entire customer journey rather than focus only on which tokens appear on an exchange. Platforms Must Block New Exposure Crypto providers will need to check whether customers can still acquire affected stablecoins elsewhere on their platforms after a trading pair has been removed. They must close those alternative routes and prevent existing holders from increasing their positions.ESMA says warning customers about the risks is not enough. The problem lies with the stablecoin itself and cannot be resolved by adding a disclaimer at the point of sale.Crypto exchanges are not the only firms affected. Brokers, custodians and portfolio managers must also prevent EU clients from gaining new exposure to these tokens. Existing Holders Will Have Three Months to Exit National regulators are expected to give providers until January 8, 2027, to wind down services involving affected stablecoins.During that period, customers who already hold the tokens should be able to sell or move them elsewhere.Platforms may continue holding existing balances temporarily, but only to support an orderly exit.The transition period is not an extension of normal trading. Providers must block additional purchases and stop promoting the affected tokens to EU clients. ESMA Leaves Enforcement to National Regulators ESMA has not introduced a new law or published a list of stablecoins that service providers must remove. It has instead given national regulators a common approach to enforcing MiCA against services involving non-compliant tokens.Each provider will have to determine which stablecoins it can continue offering in the EU. That assessment must account for the token’s regulatory status and any exemption or transitional period that may apply.Once a token is identified as non-compliant, the provider must determine where customers can still gain exposure and block new purchases through those channels, while giving existing holders time to exit.Which Stablecoins Can Remain in the EU?Under MiCA, a stablecoin is non-compliant if it qualifies as an asset-referenced or e-money token but has not been lawfully offered or admitted to trading in the EU. This generally means that its issuer lacks the required EU authorisation, although exemptions and transitional arrangements may apply.ESMA first told crypto providers in January 2025 to restrict purchases of such tokens and move them to sell-only trading by the end of the first quarter. Its latest guidance goes further by requiring firms to remove access across their wider services, not only from exchange order books.MiCA-compliant stablecoins can remain available. Circle’s USDC and EURC, issued in the EU through its authorised French entity, are among the tokens that can continue to be offered under the regime.