ESMA clarifies restrictions on noncompliant stablecoins

The European Securities and Markets Authority published an opinion spelling out how crypto-asset service providers should handle stablecoins that fail the EU's MiCA requirements. It says MiCA-authorized firms should cease covered services involving noncompliant asset-referenced or e-money tokens for EU clients.

The expectation extends beyond exchange listings to services such as execution, transfers, custody and portfolio management. The opinion is supervisory guidance, not a declaration that every dollar-backed stablecoin is prohibited.