The European Securities and Markets Authority (ESMA) has called on crypto asset service providers to take action against stablecoins that do not comply with the new Markets in Crypto-Assets Regulation (MiCA) by January 31, 2025. The ESMA's statement, issued on January 17, emphasized the role of national competent authorities in ensuring compliance. While the ESMA did not disclose specific non-compliant stablecoin issuers, it indicated that any stablecoins deemed non-compliant must be addressed promptly. The authority has established a deadline of the end of the first quarter of 2025 for compliance but recommends immediate restrictions on non-compliant stablecoins. Existing services may continue under a “sell-only” mode until the end of this deadline, allowing users to liquidate their positions. Tether's USDT is highlighted as a major stablecoin that, according to experts, lacks MiCA authorization and could face restrictions in the EU. Tether's compliance remains a concern, and the ESMA expects affected providers to delist USDT from their platforms by January 31, 2025, except for operations allowing customers to sell their holdings.

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