European regulators and major trading platforms are moving to enforce the Markets in Crypto-Assets framework for stablecoins. In an October 8 opinion, the European Securities and Markets Authority told EU-licensed crypto-asset service providers to stop offering services involving asset-referenced or e-money tokens that do not meet MiCA requirements. The scope covers trading, exchange, custody, transfers, order execution, investment advice and portfolio management.
ESMA stressed that a stablecoin does not need to be issued in Europe to create a European compliance problem. Exchanges cannot necessarily solve a token’s regulatory issue by removing one trading pair while continuing other activities involving it. For stablecoin issuers, distribution through regulated platforms is a major source of liquidity and reach, while EU clients could face fragmented access to dollar-linked assets if authorisation and compliance conditions are not met.
On the exchange side, Coinbase said it will automatically convert 14 restricted crypto assets for users in the European Economic Area on October 30. Affected assets include USDT and DAI, as well as tokens issued by Tether and PayPal. Users must withdraw restricted assets before the deadline; deposits received after the deadline will not be credited, and automatic conversions will be executed at prevailing market rates into USDC or other supported assets. The regulator’s opinion explains supervisory expectations and does not claim every stablecoin is non-compliant or announce enforcement against a named platform, but firms will have to map their products against the new perimeter carefully.
