The European Union is tightening its oversight of the cryptocurrency market. The European Securities and Markets Authority (ESMA) is demanding that licensed crypto companies cease providing services related to stablecoins that do not comply with the requirements of the European MiCA regulation. They have a maximum of three months to settle remaining positions. The measure could also affect holders of the popular stablecoin USDT, which is among the most used cryptocurrencies globally.
The European cryptocurrency market is set for further changes. While previous regulations primarily focused on digital asset issuers and their trading conditions, the European regulator’s new stance impacts a much broader range of services. The restrictions are now expected to cover crypto custody, transfers, and investment portfolio management.
A significant shift is brought about by the opinion published by ESMA on Thursday, October 8. In it, the regulator demands that companies with a European license cease making stablecoins available to clients whose issuance or public offering does not meet the requirements of the MiCA regulation.
The primary reason for this is investor protection. Europe does not want to allow a situation where some companies must adhere to strict rules for reserve management, transparency, and oversight, while competitive tokens remain available without comparable guarantees.
Article Contents:
- Tři měsíce na nápravu. Regulátor chce zabránit dalším nákupům
- Co bude s USDT? Největší stablecoin stojí před evropskou překážkou
- Držení kryptoměn zakázané není. Pro investory se ale mění pravidla
- Regulace může posílit konkurenční USDC
- Co změny znamenají pro český kryptoměnový trh?
- Evropa mění pravidla hry. Rozhodující bude jejich prosazování
Three Months to Rectify. Regulator Aims to Prevent Further Purchases
The most important change is the scope of the restrictions. The current European approach has already led to the delisting of some stablecoins from trading platforms. However, ESMA now demands that the rules be consistently applied to all relevant crypto services.
Companies holding a MiCA license should therefore not only prohibit European customers from buying or exchanging non-compliant stablecoins but also prevent their further use through the provider’s standard services.
The regulator also demands the implementation of technical and organizational measures to prevent clients from acquiring additional tokens or increasing existing positions.
For the settlement of remaining exposures, it sets a final three-month deadline from the publication of the opinion, i.e., by January 8, 2027. National supervisory authorities are expected to demand rectification as soon as possible, not automatically at the end of this period.
During the transition, exchanges and other providers may, under specified conditions, allow for the sale, transfer, withdrawal, or conversion of already held tokens, for example. The goal is to prevent customers from finding themselves unable to access their funds due to regulatory measures.
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What Will Happen to USDT? The Largest Stablecoin Faces a European Hurdle
One of the most significant assets affected by the European requirements is USDT from Tether. This token, pegged to the US dollar, plays a crucial role in cryptocurrency trading and serves as an intermediary for transfers between various digital assets.
However, it has long faced questions regarding its regulatory status in the European Union. This is because the issuer of USDT does not have the necessary European authorization to offer it under the MiCA regime.
ESMA itself does not name specific cryptocurrencies in its new opinion. However, the impacts on USDT are evident from the approach of individual trading platforms. For example, Coinbase, in its official guidelines for European customers, already designates USDT and other selected stablecoins as non-compliant with MiCA requirements.
The platform simultaneously warns that customers in the European Economic Area have until October 30, 2026, to withdraw their remaining tokens. If they fail to do so, the company will automatically convert their balances to USDC, or another supported asset or currency.
This also indicates that specific deadlines and procedures may vary among different exchanges. The three-month period set by ESMA does not guarantee that every investor will be able to trade the affected tokens until January.
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Holding Cryptocurrencies Is Not Banned. But Rules Are Changing for Investors
For ordinary investors, it is important to distinguish between owning cryptocurrency and utilizing the services of a regulated company. ESMA’s new opinion does not constitute a blanket ban on the private holding of USDT or other non-compliant stablecoins. It focuses on crypto service providers operating in the European market under the MiCA regime.
An investor can thus continue to own tokens in their own crypto wallet, over which they have direct control. However, this does not mean that a European licensed exchange must allow them to trade, receive, or custody these tokens.
This is precisely where practical complications may arise. If an investor holds stablecoins directly on an exchange, they may be prompted to withdraw or convert them. Some companies may also proceed with the automatic settlement of remaining balances, if their terms and conditions and relevant rules allow.
Holders of the affected tokens should therefore monitor announcements from their trading platform, verify withdrawal options, and potentially consider transferring funds. When transferring between wallets, it is crucial to check the supported blockchain network, as an incorrectly executed transfer can result in the irreversible loss of funds.
Regulation Could Strengthen Rival USDC
Stricter European rules also create an opportunity for stablecoin issuers who already meet the necessary requirements.
Among the most significant is Circle, the company behind the dollar stablecoin USDC and the euro stablecoin EURC. The firm obtained an electronic money institution license in France and issues its European stablecoins in compliance with MiCA rules.
For European crypto exchanges, such assets represent a more regulatorily accessible alternative to tokens whose issuers do not meet European requirements.
The gradual restriction of USDT could therefore redirect some trading activity towards USDC or other regulated stablecoins. However, their liquidity, availability on individual exchanges, and investors’ willingness to switch to alternative solutions will also be crucial.
Even fulfilling MiCA requirements does not mean that a stablecoin is entirely risk-free. The value of these assets still depends on the issuer’s ability to honor their commitment to holders and on the quality of the system that ensures the token’s stability.
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What Do the Changes Mean for the Czech Cryptocurrency Market?
The new European requirements also apply to cryptocurrency service providers operating in the Czech Republic. The Czech market, meanwhile, has already undergone a significant regulatory change this year. As the Czech National Bank pointed out, as of July 1, 2026, the transitional period during which some cryptocurrency companies could operate without full MiCA authorization ended.
Services can thus be provided primarily by companies with the relevant European license or financial institutions that meet the stipulated conditions. ESMA’s new opinion presents an additional requirement for how they structure their offerings. If they currently allow clients access to non-compliant stablecoins, they will need to address the situation in accordance with the expectations of the relevant supervisory authority.
Customers of both Czech and foreign cryptocurrency platforms should therefore pay attention not only to whether their provider is licensed, but also to which specific tokens it supports.
Europe is Changing the Rules of the Game. Their Enforcement Will Be Crucial
The October opinion is not a new European law, but an interpretation of supervisory expectations within the already valid MiCA regulation. Its significance, however, lies in the fact that the European regulator demands a more unified and consistent approach from national supervisory authorities.
While earlier restrictions primarily focused on the offering and trading of non-compliant stablecoins, attention is now also shifting to their custody, transfers, and other services.
For issuers, this means increasing pressure to meet European requirements. For crypto exchanges, it means the necessity to adapt their systems and offerings. And for investors, it primarily means the need to carefully monitor where and under what conditions they can continue to use their digital assets.
The coming months will thus show whether the European market succeeds in transitioning to regulated stablecoins without significant complications for users and whether stricter rules will truly bolster confidence in digital assets.
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