EU watchdog sets January 2027 deadline for non-compliant stablecoins

The European financial markets watchdog, ESMA, has tightened stablecoin regulations with a January 2027 deadline. On the 8th of October, in a guideline to national regulators across the EU, the watchdog added, Any continuation of services should be strictly limited to sell-only, conversion, transfer or withdrawal functionalities necessary to avoid client detriment, and should be time-limited, risk-based and closely supervised. Some of the services that will be permitted include swapping to MiCA-compliant stablecoins such as USDC. As such, all unauthorized stablecoin balances should be wound down in three months (8th of January 2027).

Source: AMBCrypto