The European Securities and Markets Authority wants MiCA-authorised crypto firms to stop serving EU clients with non-compliant asset-referenced and e-money tokens. National regulators are to require remediation within three months, which puts the deadline at 8 January 2027.
On 8 October, ESMA said that MiCA-authorised crypto-asset service providers should stop providing EU clients with services involving asset-referenced tokens and e-money tokens that do not comply with the regulation. The position covers trading, exchange, transfers, custody and portfolio management, beyond the listing of affected tokens.
Three-month remediation deadline
ESMA instructed national competent authorities to require firms to remediate remaining pre-existing exposure as soon as possible and within three months of the opinion's publication. The instruction is addressed to national regulators rather than to firms directly.
Firms must end services involving the affected tokens. The expectation is not simply a restriction on new listings or trading activity.
Custody and transfers are in scope
ESMA explicitly included trading and exchange services, as well as transfers, custody and portfolio management, in its expectations for services involving unauthorised or non-MiCA-compliant tokens. Authorised providers may therefore fall within scope when they hold affected tokens for clients, process client transfers or manage portfolios containing them.
The scope is not limited to providers operating a market for the asset. ESMA framed the measure around services involving unauthorised tokens, rather than only the ability to buy or sell them on an exchange.
Limited services during wind-down
However, ESMA said firms may continue only narrowly limited services needed to liquidate, convert, withdraw, transfer or safekeep affected assets during remediation. The services must be time-limited, risk-based and subject to close supervision.
National authorities are expected to supervise how firms apply those limits through the 8 January 2027 remediation deadline.
Source: Crypto Daily
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