The European Union’s securities regulator has ordered crypto firms to delist non-compliant stablecoins by the end of the first quarter of 2025.
The EU’s new Markets in Crypto Assets (MiCA) regulatory framework defines stablecoins as either asset-referenced tokens (ARTs) or electronic money tokens (EMTs).
[adinserter block="1"]EMTs are digital assets tied to the price of a single fiat currency, while ARTs can be based on a basket of currencies, assets and/or cryptos.
The European Securities and Markets Authority (ESMA) says in a new public statement that all national authorities within the EU should force crypto asset service providers (CASPs) to delist non-compliant EMTs and ARTs “as soon as possible and no later than the end of Q1 2025.”
MiCA is new EU legislation that establishes rules covering the supervision, consumer protection and environmental safeguards of crypto assets.
The regulatory framework includes measures that aim to reduce financial crimes including market manipulation, money laundering and terrorist financing. It also places stablecoin issuers under the European Banking Authority and requires them to hold sufficient liquid reserves.
The part of the legislation covering stablecoins took effect in June, and the rest rolled out in December.
The second-largest stablecoin by market cap, Circle’s USDC, became compliant with MiCA last summer.
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