The European Securities and Markets Authority (ESMA) has called on national authorities in the European Union (EU) to ensure that exchanges stop offering non-compliant stablecoins for trading within the next two months. ESMA has requested that all crypto asset service providers (CASPs) in the EU be compliant with stablecoin rules by the end of Q1 2025. CASPs operating a trading platform for crypto-assets will be expected to cease offering any crypto-assets that would qualify as asset referenced tokens (ARTs) and electronic money tokens (EMTs), unless the issuer is authorized in the EU. This move would impact stablecoins like Tether's USDT if offered to EU clients. Exchanges like Gemini and Coinbase, registered in the EU, will have to delist unauthorized stablecoins. Coinbase has already restricted services for stablecoins that do not meet regulatory requirements and will consider re-enabling services for compliant stablecoins at a later date. ESMA's statement reflects the EU's stricter stance on stablecoin regulation.



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