EU Orders Removal of Non-Compliant Stablecoins by March 2025

The EU has set a strict deadline for the removal of stablecoins that fail to comply with its new regulations, requiring crypto firms to delist non-compliant tokens by the end of March 2025.

This directive is part of the EU’s recently introduced Markets in Crypto Assets (MiCA) framework, which aims to bring clarity and oversight to the cryptocurrency industry.

MiCA defines stablecoins into two main categories: electronic money tokens (EMTs), pegged to a single fiat currency, and asset-referenced tokens (ARTs), which derive value from a combination of currencies, assets, or cryptocurrencies. The European Securities and Markets Authority (ESMA) has instructed national regulators across member states to ensure that crypto platforms take action to remove any EMTs or ARTs that do not align with these guidelines.

Designed to create a safer and more transparent environment for crypto users, MiCA introduces measures to prevent financial misconduct, including money laundering and market manipulation. It also enforces strict requirements on stablecoin issuers, such as maintaining sufficient liquid reserves and submitting to the oversight of the European Banking Authority.

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The stablecoin provisions of MiCA came into effect in June, while the broader framework was fully implemented in December. Some major players, such as USDC, have already aligned with MiCA’s requirements, achieving compliance during the summer of 2024. As the deadline approaches, crypto firms face growing pressure to adapt to the EU’s new regulatory landscape.

Alexander Zdravkov