ESMA confirms MiCA does not ban the custody of stablecoins
The European Securities and Markets Authority (ESMA) has clarified that the custody and transfers of stablecoins not compliant with the Markets in Crypto-Assets Regulation (MiCA) are not explicitly restricted.
This clarification comes as Binance announced plans to delist nine non-MiCA-compliant stablecoins, including Tether's USDT (CRYPTO:USDT), for users in the European Economic Area (EEA), effective March 31.
Despite the delisting, Binance will continue to support deposits and withdrawals of these stablecoins, allowing investors to maintain or exit their positions.
ESMA emphasised that providing custody and transfer services for non-compliant stablecoins does not constitute an "offering to the public" under MiCA, thus these services are not prohibited.
However, ESMA advised European crypto asset service providers (CASPs) to limit services that facilitate the acquisition of non-compliant stablecoins, suggesting a strategic approach to gradually reduce their circulation.
"Custody and transfer services do not in themselves constitute an ‘offering to the public’ or ‘seeking admission to trading’ of non-compliant asset-reference tokens or e-money tokens," ESMA noted.
This clarification adds to ongoing debates about MiCA's scope and its application to sectors like tokenised real-world assets and cryptocurrency staking.
Industry observers highlight that MiCA's provisions continue to be interpreted in various ways, contributing to confusion among stakeholders.
Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance, pointed out that the delistings of USDT have generated numerous debates, underscoring the need for clearer regulatory guidance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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