The European Securities and Markets Authority (ESMA) has added a new layer of complexity to Europe’s evolving crypto regulations by clarifying the status of stablecoins that do not meet the Markets in Crypto-Assets Regulation (MiCA) standards. This comes on the heels of Binance’s announcement on March 3 to delist nine non-MiCA compliant stablecoins – including Tether’s USDt – for users in the European Economic Area (EEA).
Binance’s decision, which removes the affected tokens from trading, is only part of the story. The exchange confirmed that deposits and withdrawals of these non-compliant stablecoins will still be supported until after the delisting date on March 31. According to ESMA, providing custody and transfer services for such assets does not breach MiCA rules. The regulator explained that these activities do not equate to “offering to the public” or “seeking admission to trading,” a clarification that has both reassured and puzzled industry stakeholders.
In its remarks to Cointelegraph on March 4, an ESMA spokesperson emphasized that while the custody and transfer of non-MiCA compliant tokens like USDt are not explicitly prohibited, crypto asset service providers (CASPs) in Europe must prioritize restricting services that facilitate the acquisition of these assets. ESMA’s guidance, issued on January 17, 2025, permits “sell-only” services—allowing investors to exit their positions—until March 31. This regulatory nuance has fueled further debate among market experts.
Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, has long highlighted the controversies surrounding Tether’s USDt and similar assets under the MiCA framework. Many industry observers agree that while MiCA aims to create a cohesive regulatory environment, several questions remain unresolved. Issues such as the treatment of tokenized real-world assets and cryptocurrency staking continue to stir discussions across Europe’s crypto community.
Also Read: EU Approves 10 Stablecoin Issuers Under MiCA – Tether (USDT) Left Out
As national competent authorities and ESMA closely monitor market developments, the future of non-MiCA compliant stablecoins remains uncertain. Market participants are advised to remain vigilant and ensure their platforms adhere to evolving regulatory standards while the transition to full MiCA compliance unfolds in the dynamic European crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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