How can exchanges and trading platforms operate with Non-compliant stablecoins?

Starting from June 30, 2024, trading platforms and stablecoins that do not comply with MiCA regulations must cease offering key services.

According to the Public Statement from EBA (July 5, 2024), the following actions are prohibited:

• Offering to the public;
• Seeking admission to trading;
• Placing non-compliant ARTs/EMTs.

Additionally, ESMA has confirmed that the following services will be restricted:

• Exchange services;
• Reception and transmission of orders;
• Execution of trading operations.

What’s next?

Our legal expert, Nikita Prokopenko, shares his insights:

On January 17, 2025, ESMA released a new Public Statement regarding the regulation of ARTs and EMTs that do not meet MiCA requirements. Local regulators (NCAs) are responsible for ensuring full compliance of CASPs by the end of Q1 2025.

In practice, this means:

• CASPs managing trading platforms must stop trading all non-compliant ARTs and EMTs.
• The priority is a smooth transition to MiCA-compliant alternatives.
• By the end of January 2025, restrictions must be implemented on new products and offers related to non-MiCA-compliant ARTs and EMTs.
• By the end of Q1 2025, full implementation of the restrictions is required. Until then, platforms may operate under “sell only” mode, meaning these assets can be sold but not purchased.

How to operate going forward?

1. Custodial services remain allowed, but clients must be warned about risks.
2. Withdrawal of funds cannot be restricted – it should remain seamless.
3. USDT transactions remain possible, but from January 2025, restrictions must be placed on intra-exchange stablecoin transactions.
4. Displaying USDT as the value of other crypto assets may be considered “placing” by regulators, which violates MiCA rules.

What should businesses do?

Crypto exchanges, trading platforms, and fintech companies must adapt to MiCA now:

• Audit current assets and services – do you have non-MiCA-compliant ARTs and EMTs?
• Transition to MiCA-compliant assets – find alternative instruments.
• Communicate with customers – inform them about upcoming changes.
• Technical adjustments – restrict or discontinue support for non-compliant assets.

These regulatory shifts will significantly impact the crypto market, so businesses must take action now to avoid fines and regulatory sanctions.