Only stablecoins issued by official organizations are legally usable in the EU, according to ESMA’s call. The regulator did not specify which stablecoins or issuers violate the rules, but it made it clear that national officials across the EU are responsible for ensuring compliance. Crypto service companies now need to ensure their services align with MiCA standards to avoid penalties.
Important Due Dates and Compliance Schedule All CASPs have until March 31, 2025, to make sure they are in line with the rules set by the ESMA. However, the ESMA is urging immediate action, with the goal of blocking non-compliant services by the end of January. Firms may continue to offer non-compliant tokens after this date, but only on a “sell-only” basis. This means that investors can sell or convert their holdings without any other trading choices.
Tether’s USDT is being looked at closely The most well-known stablecoin that these rules could affect is Tether’s USDT, which is also the largest stablecoin by market value. At the moment, Tether does not have a MiCA license. Industry sources predict the removal of USDT from EU platforms by January 31 and its complete removal by March 31. This could cause big problems in the market if regulators don’t move quickly.
Continued Confusion Among Stakeholders in the Industry The implementation of MiCA remains unclear, particularly regarding the legality of certain stablecoins. Several business leaders are worried that the new rules will be challenging to understand and cause confusion. Many exchanges and firms will likely work closely with national officials as talks about regulations continue to ensure their services remain uninterrupted.
In short, the ESMA’s new advice urges action right away, but the changes will really take effect over the next few months. Because of MiCA’s strict rules on stablecoins, crypto companies need to quickly align their services or face harsh punishments, especially those that give tokens that don’t follow the rules, like USDT.
