The European Securities and Markets Authority (ESMA) has proposed extending EU restrictions on non-compliant stablecoins beyond trading bans to include custody and transfer services.
In a response dated September 30, 2026, to a review of the EU's Markets in Crypto-Assets regulation (MiCA), ESMA asked the European Commission to prohibit every licensable crypto-asset service involving stablecoins that fail to meet the regulation's applicable requirements. Custody and transfer services fall within that list of licensable services under MiCA.
Under the current framework, non-compliant stablecoins lose their trading pairs once restrictions take effect. ESMA's proposal would go further by removing the option for holders to leave such tokens with a licensed custodian after trading pairs disappear.
