EU Requires Restrictions on Transactions Involving Unauthorized Stablecoins by January 2027
05.11.2026 10:42
The European Securities and Markets Authority (ESMA) is requiring cryptocurrency companies authorized under the MiCA regulation to cease providing services to clients in the European Union involving stablecoins that do not comply with European regulatory requirements.
National supervisory authorities must require the settlement of any identified residual positions by approximately January 8, 2027.
ESMA’s position applies not only to exchange trading but also to the exchange of cryptoassets, the execution of client orders, advisory services, transfers, portfolio management, and the custody of digital assets.
The regulator emphasizes that authorized cryptocurrency service providers must not facilitate new purchases or increases in positions in stablecoins that do not comply with MiCA.
At the same time, during the transition period, certain transactions necessary for the sale, conversion, withdrawal, or secure storage of previously acquired assets are permitted.
Such services must be limited in scope, carried out within a specified timeframe, and subject to oversight by national regulators.
The document primarily concerns asset-backed tokens and electronic money tokens that do not meet the requirements of European regulations.
MiCA establishes specific rules for stablecoin issuers, particularly regarding asset reserves, disclosure, risk management, and the protection of token holders.
The conclusion of the EU-wide transition period for cryptocurrency service providers on July 1, 2026, marked an important milestone in the formation of a single regulated market for digital assets in the EU.
For international cryptocurrency exchanges, the new requirements mean they must adapt the range of available trading instruments, payment services, and asset custody operations for European clients.
For stablecoin issuers, this heightens the economic importance of MiCA compliance, as the ability to access clients through regulated European platforms increasingly depends on the legal status of tokens.
At the same time, ESMA has not announced a blanket ban on the use of all dollar-pegged stablecoins. The restrictions apply to specific assets and services that do not meet regulatory requirements.
The further implementation of MiCA may contribute to a redistribution of demand among issuers and strengthen the positions of companies that have obtained the necessary authorizations to operate in the European market.