The European Securities and Markets Authority has urged EU crypto firms to stop offering services tied to stablecoins that do not comply with the Markets in Crypto-Assets Regulation framework, giving them three months to address existing exposures. According to Cointelegraph, ESMA said national regulators should ensure companies deal with any remaining exposure to non-compliant stablecoins as soon as possible and no later than Jan. 8, 2027. The guidance applies to crypto-asset service providers authorized under MiCA and covers trading platforms, exchange services, order execution, custody, transfers, investment advice and portfolio management. ESMA said firms should use technical, contractual and organizational controls to prevent EU clients from acquiring or increasing exposure to unauthorized stablecoins, while allowing only limited and temporary services to help clients exit positions under close supervision.

The regulator said crypto firms may provide restricted support for liquidation, conversion, withdrawal, transfers and safekeeping when needed to unwind existing holdings, but those activities must remain temporary and closely monitored. ESMA’s latest update builds on its January 2025 guidance, which already called for limits on trading and exchange services involving non-compliant stablecoins. The new position reinforces the bloc’s broader effort to align crypto-asset services with MiCA requirements and reduce exposure to assets that fall outside the framework. ESMA’s statement places responsibility on both firms and national regulators to ensure that non-compliant stablecoins are phased out of EU-facing services without delay, while still allowing an orderly exit for clients who already hold such assets.