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ESMA seeks to bar custody and transfers for non-compliant EU stablecoins
ESMA’s proposal would block every licensable crypto-asset service involving stablecoins that fail MiCA requirements, extending restrictions beyond trading to wallet custody and transfer access.
ESMA is proposing to extend EU restrictions on non-compliant stablecoins beyond trading to the custody and transfer services that let users keep and move those tokens, according to CryptoSlate. If adopted, the change would remove the option for customers to leave non-compliant stablecoins with a licensed custodian after their trading pairs disappear.
In a September 30, 2026 response related to a review of the EU’s Markets in Crypto-Assets regulation, ESMA asks the European Commission to prohibit every licensable crypto-asset service involving stablecoins that do not meet MiCA’s applicable requirements, with custody and transfers included in that service list.
The regulator said the consequence could affect existing stablecoin holders who have stopped trading and customers seeking to buy, and ESMA described the step as going further than its January 2025 approach that would have kept custody and transfer available even if trading access was restricted.
ESMA also noted that it previously distinguished between services that offered non-compliant stablecoins to the public or admitted them to trading, versus simply holding them, and it said the proposal does not include a forced conversion timetable or a clear global demand shift.