The European Securities and Markets Authority has issued a call to national authorities within the European Union to verify that exchanges cease offering non-compliant stablecoins for trading within the next two months. In a statement released on Friday, the regulator requested that the 27 EU member states ensure that crypto asset service providers comply with stablecoin regulations by the end of Q1 2025. This means that providers operating trading platforms for crypto-assets must stop offering crypto-assets that would qualify as asset-referenced tokens and electronic money tokens but lack EU authorization.
The move is expected to impact stablecoins that do not comply with EU laws, such as Tether's USDT if offered to EU clients. Large issuers have already taken steps to comply with the Markets in Crypto Assets legislation, with Tether discontinuing its euro stablecoin and Circle obtaining an e-money license. Exchanges like Gemini and Coinbase, registered in the EU, would need to delist unauthorized stablecoins. Coinbase has already restricted services for non-compliant stablecoins, while Gemini is assessing the impact on its customers.
Tether is aware of the evolving regulatory landscape and does not anticipate immediate changes for its users.