EU Regulators Propose Ban on Non-Compliant Stablecoin Services
The European Securities and Markets Authority (ESMA) has proposed that European Union (EU) crypto firms be barred from providing services involving stablecoins that fail to comply with the Markets in Crypto Assets (MiCA) regulations.
The proposal, which is not yet a law, would affect custody and transfers of non-compliant stablecoins, even if the holder never plans to trade them again.
The ESMA submitted its response to the European Commission on September 30, 2026, and the Commission may include legislative changes in the future.
Under MiCA Article 3, custody covers safekeeping or controlling clients' crypto-assets or their means of access, including private keys, and transfers cover moving assets on a client's behalf between ledger addresses or accounts.