With the full implementation of the MiCA regulation, the legislative framework governing the cryptocurrency market within the European Union, Crypto Asset Service Providers (CASP) can no longer offer cryptocurrencies that do not comply with the law. The European Financial Markets Authority wanted to remind exchanges that have still not taken action of this.
ESMA wants exchanges to comply with the MiCA regulation to the letter
Through a public statement released last week, the European Securities and Markets Authority (ESMA) wanted to remind current Crypto Asset Service Providers (CASP) carrying out their activities on European soil that they no longer have the right to list cryptocurrencies that do not comply with the MiCA regulation.
ESMA notably cited the comments made by the European Banking Authority (EBA) last July:
The activities of issuing, offering to the public and requesting admission to trading of asset-referenced tokens (ART) and electronic money tokens (EMT) are regulated activities under Titles III and IV of the European Cryptoassets Regulation (MiCA)which became applicable on June 30, 2024.
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This is why the European Financial Markets Authority reminded the PSAPs that they were in “ the obligation to put in place procedures as soon as possible so that competent authorities can easily assess compliance with the MiCA Regulation “.
Thus, PSAPs are expected to take steps to quickly align their services and products on this regulation which came into full force on December 30.
At the same time, ESMA asked the competent authorities of each member country of the European Union, like the Financial Markets Authority (AMF) for France, to to guide exchanges in this process so that everything is in order by the end of the 1st quarter of 2025.
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Several stablecoins, like Tether's USDT, can no longer be issued within the EU
With the full implementation of the MiCA regulation within the European Union, exchanges can no longer list certain stablecoinsthose who do not comply with the requirements of the law. This is why Tether's USDT, which does not comply with the legislative framework, has been removed from the lists of several crypto platforms in Europe like Coinbase or Deskoin.
However, some exchanges have not taken action, preferring to wait for a clear decision from regulators regarding these stablecoins. It is most likely these crypto players that ESMA's public statement is aimed at, who seeks to convince them to take the plunge.
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Furthermore, with the arrival of the MiCA regulation, crypto companies will have to face a regulatory journey specific to the jurisdiction in which they wish to operate. They will be able to free themselves from this process and practice throughout the EU if they succeed to obtain a MiCA licenselike Crypto.com, the first entity to obtain this holy grail.
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Source: European Securities and Markets Authority
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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