ESMA proposes ending EU custody and transfer services for non-compliant stablecoins

Key points

• ESMA asked the European Commission to prohibit all licensable crypto-asset services involving stablecoins failing MiCA requirements, including custody and transfers, in its September 30, 2026 response.
• The proposal goes beyond ESMA's January 2025 approach, which allowed custody and transfer of non-compliant stablecoins to continue after trading pairs were removed.
• ESMA's submission is a policy response, not enacted law, and its Section 3.2 gives no implementation date, withdrawal exception or wind-down mechanism.

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