On 8 October, the European Securities and Markets Authority said MiCA-authorised crypto-asset service providers should stop providing EU clients with services involving asset-referenced tokens and e-money tokens that do not comply with the regulation. The supervisory position covers trading, exchange, transfers, custody and portfolio management, beyond the listing of affected tokens.

ESMA instructed national competent authorities to require firms to remediate remaining pre-existing exposure as soon as possible and within three months of the opinion's publication, placing the effective deadline on 8 January 2027, according to ESMA's announcement.

Three-month remediation deadline

For MiCA-authorised crypto-asset service providers serving EU clients, ESMA’s opinion directs national regulators to require firms to remediate residual, pre-existing exposure to unauthorised asset-referenced tokens and e-money tokens within three months of publication. The instruction is addressed to national regulators rather than firms directly.

Firms must end services involving the affected tokens; the expectation is not simply a restriction on new listings or trading activity.

Custody and transfers are in scope

ESMA explicitly included trading and exchange services, as well as transfers, custody and portfolio management, in its expectations for services involving unauthorised or non-MiCA-compliant tokens.

Authorised providers may therefore be within scope when they hold affected tokens for clients, process client transfers or manage portfolios containing them.

The scope is not limited to providers operating a market for the asset. ESMA framed the measure around services involving unauthorised tokens, rather than only the ability to buy or sell them on an exchange.

Limited services during wind-down

ESMA said firms may continue only the narrowly limited services needed to liquidate, convert, withdraw, transfer or safekeep affected assets during remediation. The services must be time-limited, risk-based and subject to close supervision. The allowance enables firms to manage existing client positions while completing the wind-down, rather than preserve ordinary service provision for non-compliant tokens beyond remediation needs. ESMA said national competent authorities are expected to supervise firms’ application of those limits through the 8 January 2027 remediation deadline.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily