The European Securities and Markets Authority (ESMA) has clarified its stance on the custody and transfer of non-MiCA-compliant stablecoins
This clarification adds another layer to the ongoing debate about how such stablecoins will be regulated in Europe. Especially as the March 3 announcement by Binance revealed plans to delist nine Non-MiCA Stablecoin. This includes Tether’s USDT for users in the European Economic Area (EEA).
This move comes amid growing uncertainty over the classification of stablecoins that don’t meet MiCA’s requirements. According to ESMA, providing custody and transfer services for these stablecoins does not equate to offering them to the public. It also does not mean seeking their admission to trading.
It’s important to note that ESMA has urged European crypto asset service providers (CASPs) to tread carefully. According to a spokesperson for ESMA, European regulators have stressed the importance of restricting services. This will facilitate the acquisition of non-compliant stablecoins.
For now, European crypto platforms can breathe a sigh of relief. Knowing that they aren’t in hot water for offering custody or transfer services for non-compliant stablecoins. However, the bigger question remains: What happens if a stablecoin’s compliance status changes? That remains to be seen as MiCA’s full regulatory impact continues to unfold.
Tether has frozen $27 million worth of $USDT on the Russian exchange Garantex. This forced the platform to suspend trading and withdrawals. This action follows sanctions imposed on Garantex for its alleged involvement in facilitating illicit activities. This includes money laundering.
By freezing the funds, Tether is complying with global sanctions and regulatory requirements. This ensures that its stablecoin is not used to bypass financial restrictions.
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🇪🇺 NEW: ESMA clarified that the MiCA regulation does not ban $USDT in the EU but only restricts services facilitating its purchase. The regulator confirmed that storing and transferring USDT remains legal under EU law.
🇷🇺 NEW: Tether freezes $27M $USDT on Russian exchange Garantex, forcing the sanctioned platform to halt trading and withdrawals.
