TechFlow news, according to FinanceFeeds, the European Securities and Markets Authority (ESMA) has required cryptocurrency companies to comply with the EU's new stablecoin rules by March 31. The regulation is part of the broader Markets in Crypto-Assets (MiCA) framework, which requires firms to restrict or delist stablecoins that do not meet the standards.
MiCA's stablecoin provisions have been in effect since mid-2024, but ESMA now expects companies to complete their adjustments by the end of the first quarter. Regulators stated that prior to this deadline, firms could retain non-compliant stablecoins for sale but could not purchase them. It warned that delays could disrupt the market.
Only stablecoins authorized by regulators in EU member states may continue to be listed. These tokens must maintain adequate reserves and adhere to transparency and governance requirements. The new rules aim to ensure issuers hold sufficient liquidity and that investors understand what they are purchasing.
Tether's USDT is one of the stablecoins under close scrutiny. It remains unclear whether Tether intends to apply for EU authorization. The company recently discontinued support for its euro-denominated stablecoin, citing regulatory challenges. Observers note that Tether's primary stablecoin, classified as "significant" under MiCA, may face stricter requirements, including higher capital reserves and enhanced oversight.
With the ESMA deadline approaching, crypto exchanges and stablecoin issuers in the EU face mounting pressure to meet the new standards—or risk losing access to Europe's large and growing digital asset market.
