Short answer
Since 30 June 2024, MiCA lets only an authorised issuer publicly offer a stablecoin in the EU. EMTs must be redeemable at par, and issuers may not pay interest. Binance removed nine non-compliant pairs, including USDT, for EEA users on 31 March 2025. The exchange grace period ended on 1 July 2026. An 8 October 2026 ESMA opinion limits licensed providers to exit and safekeeping services for non-compliant stablecoins.
- What happened Stablecoin rules applied from 30 June 2024.
- Why it matters Only authorised issuers may offer stablecoins publicly.
- What changed in 2026 The exchange grace period ended on 1 July 2026, and ESMA's 8 October 2026 opinion limited services for non-compliant stablecoins.
- What to watch ESMA's three-month remediation window.
Last checked
Key facts
| Stablecoin rules applied | 30 June 2024 (MiCA Titles III and IV) |
| MiCA general application | 30 December 2024 |
| Minimum EMT funds in separate bank accounts | At least 30 % |
| Binance removed non-compliant stablecoin pairs for EEA users | 31 March 2025 (nine pairs, per The Block) |
| End of transitional period for crypto service providers | 1 July 2026 |
| ESMA opinion on non-compliant stablecoins | 8 October 2026, with three months after publication to remediate existing exposures |
What does MiCA require from stablecoin issuers?
The EU's Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114, sorts stablecoins into two groups. E-money tokens (EMTs) track a single official currency. Asset-referenced tokens (ARTs) track another value or a basket. ARTs are covered by Title III of the law and EMTs by Title IV. Both titles applied from 30 June 2024, six months before the rest of MiCA took effect on 30 December 2024.
The central rule is about who may sell the token. Only the issuer may offer an EMT to the public or seek its admission to trading in the EU. That issuer must be authorised as a bank (a credit institution) or an electronic money institution, and must notify regulators and publish a white paper. ARTs follow a similar logic: the issuer must be an EU-established entity authorised under Article 21, or a credit institution complying with Article 17.
The other rules shape how the coins work. EMTs must be issued at par when funds are received and redeemed at par, at any time, in funds. ART holders have a right of redemption at all times against the issuer, and against the reserve assets if the issuer cannot pay. Neither type may pay interest.
Reserves are tightly defined for EMTs. At least 30 % of funds received must sit in separate accounts at credit institutions, with the rest in secure, low-risk, highly liquid instruments in the same currency. ART issuers must keep a reserve of assets at all times. The European Banking Authority (EBA) supervises issuers of significant ARTs and, for specific obligations, significant EMTs issued by e-money institutions.
| Rule | E-money tokens (EMTs) | Asset-referenced tokens (ARTs) |
|---|---|---|
| Who may offer to the public | Only the issuer, authorised as a credit institution or e-money institution | Only the issuer, EU-established and authorised, or a credit institution |
| Redemption | At any time and at par value, in funds | Right of redemption at all times against the issuer, and the reserve if needed |
| Interest | Not allowed | Not allowed |
| Reserves | At least 30 % in separate bank accounts, rest in low-risk liquid assets | Reserve of assets maintained at all times |
| EU-level supervisor if significant | EBA, for specific obligations when issued by e-money institutions | EBA |
What happened, and when?
The rules came in stages, and the stages apply to different groups. Issuer rules started in mid-2024. The pressure on exchanges, brokers and custodians, known in the law as crypto-asset service providers (CASPs), built up over the following two years.
Circle said on 1 July 2024 that USDC and EURC were being issued in the EU in compliance with MiCA, based on an electronic money institution licence from France's ACPR. That is a company statement. In January 2025 ESMA, the EU securities regulator, told national authorities to make sure CASPs complied on non-compliant ARTs and EMTs no later than the end of Q1 2025.
| Date | Event | Source |
|---|---|---|
| 30 June 2024 | MiCA stablecoin titles (III and IV) apply | MiCA regulation text |
| 1 July 2024 | Circle says USDC and EURC are issued in the EU in compliance with MiCA | Circle |
| 30 December 2024 | MiCA applies generally | MiCA regulation text |
| 17 January 2025 | ESMA sets end of Q1 2025 as the outer limit for CASP compliance on non-compliant tokens | ESMA |
| Around 24 March 2025 | Kraken restricts USDT to sell-only for EEA users | Cointelegraph |
| 31 March 2025 | Binance EEA users lose access to nine non-compliant stablecoin trading pairs, including USDT | The Block |
| 17 April 2026 | ESMA confirms the CASP transitional period ends on 1 July 2026 | ESMA statement |
| 1 July 2026 | Transitional period for CASPs expires across the EU | ESMA statement |
| 8 October 2026 | ESMA opinion says authorised CASPs should stop services related to non-compliant stablecoins | ESMA opinion |
Why did USDT disappear from EU exchanges?
The mechanism runs through the exchanges, not through users. MiCA restricts public offers and admission to trading of stablecoins that lack an authorised issuer. ESMA's January 2025 guidance then asked national supervisors to make CASPs comply with that by the end of Q1 2025.
The exchange moves line up with that deadline. Binance announced that EEA users would lose access to nine stablecoin trading pairs, including USDT, on 31 March 2025, according to The Block. Kraken had restricted USDT to sell-only for EEA users around 24 March 2025, according to Cointelegraph. Both dates fall in the last days of the quarter ESMA named.
This is not the same as a ban on owning USDT. MiCA's restrictions, as set out here, target who may offer a stablecoin publicly or seek its admission to trading, and ESMA's guidance targets what licensed providers do with non-compliant tokens. None of these rules is aimed at a person who already holds the token.
Who is affected, and what can users still do?
Three groups feel the rules differently. Issuers need an EU authorisation to offer a stablecoin publicly. Exchanges and other CASPs need their own MiCA licence and must limit what they do with non-compliant tokens. Retail users see the result as fewer trading pairs and narrower services.
The licensing deadline for providers is separate from the issuer rules. Member states could set national grandfathering periods shorter than 18 months, and ESMA published that list. The 1 July 2026 date was the outer limit, and some countries ended earlier. After that date, ESMA said, unlicensed providers serving EU clients are in breach of EU law, and any unauthorised CASP must have implemented its wind-down plan.
For tokens that are not MiCA-compliant, ESMA's 8 October 2026 opinion says authorised CASPs should stop providing related services to EU clients. Existing exposures should be remediated within three months of publication. In practice, services for these tokens are limited to liquidation, conversion, withdrawal, transfer or safekeeping, with no new buying through licensed providers.
ESMA's consumer advice is direct: check that a provider is listed as authorised in the ESMA Interim MiCA Register before investing or transferring funds. On ESMA's MiCA page, open the Interim MiCA Register. Look up your provider in the authorised CASPs file (Title V) and your stablecoin's issuer in the EMT issuers file (Title IV) or the ART issuers file (Title III). Also check the non-compliant entities file. ESMA last updated the page on 22 October 2026.
Availability differs by country and by platform. A token or service offered in one member state may not be offered in another, and outside the EU different rules apply. Check your provider's terms and the ESMA register for where you live.
- Issuers: must be authorised in the EU to offer a stablecoin to the public.
- Exchanges, brokers, custodians: needed a MiCA licence by 1 July 2026 at the latest.
- Users: services for non-compliant tokens through licensed platforms are expected to be limited to liquidation, conversion, withdrawal, transfer or safekeeping.
What should readers watch next?
The nearest marker is the three-month remediation window in ESMA's 8 October 2026 opinion. That sets the period for licensed providers to deal with remaining pre-existing exposures to non-compliant stablecoins.
Two policy tracks are also open. On 30 September 2026, ESMA responded to the European Commission's MiCA review consultation. ESMA asked for an explicit legal prohibition on authorised CASPs facilitating unauthorised stablecoins. Whether the Commission adopts that is not yet known. Separately, on 4 December 2025 the Commission proposed moving CASP supervision from national authorities to ESMA. That is a proposal still in the legislative process.
- Remediation of existing exposures: within three months of the 8 October 2026 opinion's publication.
- Commission MiCA review: ESMA has requested an explicit prohibition.
- Commission proposal of 4 December 2025 to shift CASP supervision to ESMA: still in the legislative process.
What is not confirmed?
Several points circulating online could not be verified from primary sources for this explainer. Readers should treat them as open.
- The full current list of MiCA-authorised e-money tokens. Secondary sources name several, but the ESMA register is the place to check.
- Whether any asset-referenced token, as opposed to an e-money token, has been authorised under MiCA as of October 2026.
- Claims that Tether never applied for EMT authorisation, which appear only on secondary blogs.
- The exact date and token list for any Coinbase delisting in the EEA.
- The current legislative stage of the Commission's December 2025 supervision proposal and the number of CASPs it would cover.
- The exact calendar end date of the three-month remediation window, which runs from the opinion's publication.
Is this explainer financial advice?
No. This explainer is general information, not financial, investment, legal or tax advice, and it does not recommend buying, selling or holding any token. Crypto-assets can lose value, and stablecoins can lose their peg.
FAQ
Is USDT banned in the EU?
No ban on holding is set out in the rules covered here. MiCA restricts public offers and admission to trading to authorised issuers, and ESMA's guidance targets the services licensed providers offer for non-compliant tokens.
Which stablecoins are MiCA-compliant?
Circle said on 1 July 2024 that USDC and EURC are issued in the EU in compliance with MiCA, based on a French e-money licence. For a current list, ESMA points users to its Interim MiCA Register, which has a separate file for e-money token issuers.
Can MiCA stablecoins pay interest?
No. MiCA bars issuers of both e-money tokens and asset-referenced tokens from granting interest on them.
What happened on 1 July 2026?
The MiCA transitional period for crypto-asset service providers expired across the EU, according to ESMA. Unlicensed providers serving EU clients after that date are in breach of EU law. Some member states ended their grace periods earlier.
Can I still withdraw a non-compliant stablecoin from an EU exchange?
ESMA's 8 October 2026 opinion says any continued service should be limited to liquidation, conversion, withdrawal, transfer or safekeeping. Existing exposures should be remediated within three months of publication. Availability varies by country and platform, so check your own platform's terms.
Sources
- MiCA Regulation (EU) 2023/1114, Springlex article reproductions of OJ L 150
- ESMA – supervisory expectations on unauthorised stablecoins (8 Oct 2026)
- ESMA – Statement on end of transitional periods (17 Apr 2026)
- ESMA – guidance on non-MiCA compliant ARTs and EMTs (17 Jan 2025)
- ESMA – MiCA page and interim register
- ESMA – list of MiCA grandfathering periods by member state
- Circle press release (1 Jul 2024)
- The Block – Binance delisting (3 Mar 2025)
Figures change. Check the primary sources below.