ESMA Targets Non-Compliant Stablecoins in DeFi Regulation Push

European Securities and Markets Authority (ESMA) has proposed new rules for decentralized finance (DeFi) gateways, staking, and lending under the Markets in Crypto-Assets (MiCA) regulation.

The regulator wants to bar crypto firms from offering MiCA-licensable services involving non-compliant stablecoins, which would extend restrictions to custody and transfers.

This move is part of ESMA's efforts to ensure compliance with EU regulations on digital assets. The proposal aims to safeguard investor protection and maintain market stability in the cryptocurrency space.