The European Securities and Markets Authority (ESMA) is asking national supervisors to cease all services related to non-compliant stablecoins under the MiCA regulation offered to European Union clients, with a maximum deadline set for January 8, 2027. Tether abandoned European authorization for USDT and is now funding third-party issuers, while Circle, licensed in France as an electronic money institution, is capturing the market with USDC and EURC. The European Central Bank is targeting a digital euro pilot in 2027, and nine European banks (ING, UniCredit, KBC, Danske Bank, DekaBank, SEB, CaixaBank, Banca Sella and Raiffeisen) are preparing their own euro-backed token. Only exit services (sale, conversion, withdrawal, transfer and custody) remain authorized under regulatory control, excluding any new positions.
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