Catenaa, Sunday, January 26, 2025 – The European Securities and Markets Authority (ESMA) has directed crypto-asset service providers (CASPs) to delist stablecoins that fail to comply with the Markets in Crypto-Assets Regulation (MiCA) by the end of the first quarter of 2025.
Although the directive did not specify which stablecoins are non-compliant, it follows the European Commission’s July 2024 guidance, which clarified how MiCA applies to crypto-assets.
MiCA, which came into effect on June 30, 2024, establishes a regulatory framework for the issuance and trading of asset-referenced tokens (ARTs) and electronic money tokens (EMTs), commonly referred to as stablecoins.
The new guidance allows individuals or entities, other than the original issuer, to offer these tokens to the public, provided the issuer is authorized to operate within the EU and has granted written consent for the offering.
A “sell-only” period will be allowed until the end of Q1 2025, giving investors time to liquidate non-compliant stablecoin holdings. During this period, CASPs are required to inform investors about MiCA’s impact and assist with the liquidation or conversion of these assets.
Tether’s USDT, the largest stablecoin by market capitalization, is among those likely to face delisting in the EU. Following Coinbase’s December 2024 delisting of USDT, Tether is working to develop MiCA-compliant alternatives, but no timeline has been set.
