The European Securities and Markets Authority (ESMA) has urged firms to limit the use of stablecoins that do not comply with the European Union's newly implemented Markets in Cryptoassets Regulation (MiCA).
ESMA published a statement on January 17 regarding asset-referenced tokens (ARTs), also known as stablecoins.
The authority has asked crypto asset service providers (CASPs) to take immediate steps to restrict non-compliant stablecoins. However, no specific issuers or stablecoins were mentioned in this call for action.
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ESMA emphasized the role of national competent authorities (NCAs) in guiding CASPs to bring their services in line with recent European Commission guidelines. These guidelines state that MiCA prohibits the issuance of stablecoins by unauthorized issuers.