EU Crypto Firms Face Jan. 8 Deadline to End Services for Non-MiCA Stablecoins

European Union-authorized crypto-asset service providers should wind down services tied to stablecoins that do not comply with the bloc’s Markets in Crypto-Assets Regulation, with remediation due by Jan. 8, 2027, the European Securities and Markets Authority said.

ESMA called on national regulators to require firms to resolve customers’ existing exposure to non-MiCA asset-referenced and e-money tokens no later than three months after the opinion was published on Oct. 8.

The supervisory expectations cover trading-platform operation, exchanges, order execution, asset placement, order transmission, custody, transfers, investment advice and portfolio management. Providers must also use technical, contractual and organizational controls to stop customers from acquiring or increasing exposure to affected tokens.

During the transition, providers may offer narrowly limited exit functions, such as converting or liquidating holdings, processing withdrawals and transfers, and temporarily holding assets, subject to duration limits, risk controls and close oversight.

The guidance applies to crypto-asset service providers authorized under MiCA and does not identify specific stablecoins. ESMA said national regulators should require remediation no later than Jan. 8, 2027.