The Crypto Register EU
English ▾

MiCA rules on stablecoins (USDT, USDC, EURC): what is and is not allowed in the EU

MiCA Title III and Title IV regulate stablecoins separately from other crypto-assets. ESMA's 17 January 2025 statement set the deadline for EU CASPs to stop offering non-compliant stablecoins. Which stablecoins are compliant, which are not, and what it means for EU users.

What does MiCA say about stablecoins?

The Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114 (MiCA), regulates two distinct types of stablecoins separately from other crypto-assets:

  • E-Money Tokens (EMTs) are stablecoins pegged to a single official currency, such as the euro or the US dollar. They are governed by Title IV of MiCA. To be offered to the public or admitted to trading in the EU, an EMT must be issued by an authorised credit institution or by an entity authorised as an electronic money institution under the E-Money Directive.
  • Asset-Referenced Tokens (ARTs) are stablecoins backed by a basket of assets, currencies, or commodities (rather than pegged to one currency). They are governed by Title III of MiCA. Their issuance requires a separate MiCA authorisation as an ART issuer.

Both Title III and Title IV became applicable across the EU on . From that date, issuing, offering to the public, or seeking admission to trading of a non-compliant ART or EMT is a regulated activity in breach of MiCA if performed without authorisation.

When did stablecoin rules become enforceable?

Three dates matter:

  1. - Title III and Title IV of MiCA become applicable. Non-compliant stablecoins can no longer be lawfully offered to the public or admitted to trading.
  2. End of January 2025 - ESMA's 17 January 2025 public statement sets the expected deadline for Crypto-Asset Service Providers (CASPs) to stop making non-MiCA-compliant ARTs and EMTs available for trading.
  3. End of Q1 2025 () - ESMA's final deadline for the "sell only" wind-down. After this date, EU CASPs are not expected to continue any services that constitute offering non-compliant stablecoins to the public, including custody, transfers, or exchange-for-funds.

Which stablecoins are MiCA-compliant?

As of the date this page was last updated, the following stablecoins have been confirmed as MiCA-compliant through public authorisations:

The official source of truth for MiCA-authorised EMT issuers is the ESMA Register. This list is non-exhaustive and updated weekly; check the register for the current list of authorised EMT and ART issuers.

Which stablecoins are NOT MiCA-compliant?

Several widely-used stablecoins are not (and have not announced intention to be) authorised under MiCA. As of this writing, these include:

  • USDT (Tether) - issued by Tether Limited (registered in the British Virgin Islands and El Salvador). No MiCA authorisation. Major EU-licensed exchanges removed USDT from their EU offerings during Q1 2025 in line with ESMA's deadline.
  • BUSD (Binance USD) - issuance suspended by Paxos in 2023 following SEC action, separate from MiCA. Not MiCA-compliant.
  • USDP (Pax Dollar) - issued by Paxos Trust Company in New York. Not authorised in the EU under MiCA.
  • DAI - decentralised, algorithmic. No identified issuer to seek MiCA authorisation. The MiCA framework's applicability to fully-decentralised stablecoins is itself an open question.

Holding a non-MiCA-compliant stablecoin privately is not itself prohibited for EEA residents. ESMA's January 2025 statement focuses on the activities of CASPs (offering, admission to trading, custody, transfers) - not on individual holding.

Can I still hold USDT in the EU?

Yes, you can hold USDT in a self-custody wallet you control. What ESMA's January 2025 guidance restricts is what CASPs (centralised exchanges and similar service providers) can offer in connection with non-compliant stablecoins to EEA users:

  • Trading platforms are expected to stop listing non-compliant stablecoins for active trading.
  • Exchange-for-funds and exchange-for-crypto services are expected to stop facilitating swaps in or out of non-compliant stablecoins.
  • Custody services for non-compliant stablecoins fall in a clarified middle ground: ESMA's subsequent guidance (March 2025) confirms that mere custody and transfer of an existing holding does not by itself constitute "offering" the asset; it is the active service of providing acquisition or exchange that triggers the restriction.

What was ESMA's January 2025 statement?

ESMA's public statement of (reference ESMA75-223375936-6099) clarified how Title III and Title IV of MiCA apply to existing CASP services involving stablecoins that had been issued outside the MiCA framework (so-called "legacy" non-compliant ARTs and EMTs). It instructed CASPs to:

  1. Stop, by end of January 2025, making non-MiCA-compliant ARTs and EMTs available for trading on their trading platforms.
  2. Avoid entering into new products or offering services involving non-compliant stablecoins.
  3. Maintain a "sell only" wind-down period until end of Q1 2025 to let EU investors liquidate or convert existing positions in non-compliant stablecoins.
  4. Communicate proactively with their clients, including a clear timeline for liquidation or conversion.

The European Commission's Q&A on Articles 16(1) and 48(1) of MiCA, adopted around the same time, confirmed that "offering to the public" can include a wide range of CASP-provided services. ESMA's clarification was issued in coordination with the European Banking Authority's EBA earlier July 2024 statement.

What happens after 1 July 2026?

Beyond the stablecoin-specific deadlines that have already passed, the broader MiCA framework completes its application on . After that date, every CASP serving EEA residents must hold a MiCA authorisation, and the catalogue of activities a non-authorised entity may perform is restricted to the narrow Article 61 reverse-solicitation exception. For stablecoins specifically, the rules above remain in force; the 1 July 2026 deadline does not change the stablecoin compliance position, which has been in force since June 2024 with the Title III/IV deadlines having already lapsed.

How does this affect my choice of exchange?

If you are an EEA resident and you currently hold a position in a non-MiCA-compliant stablecoin such as USDT on an EU-licensed exchange, the practical implications depend on the exchange's specific configuration of services. Some EU-licensed exchanges have completed the wind-down required by ESMA's January 2025 statement; others continue to offer trading pairs against non-compliant stablecoins. The MiCA-compliant alternative is USDC or EURC, both issued by Circle and authorised in the EU since July 2024.

You can check whether your current exchange is licensed using the search above, and compare licensed alternatives side-by-side.

Sources cited on this page

  1. ESMA - Public Statement on the application of MiCA to crypto-asset service providers regarding stablecoins (17 January 2025, ESMA75-223375936-6099)
  2. ESMA - Joint guidance with the European Commission on non-MiCA-compliant ARTs and EMTs (January 2025)
  3. European Banking Authority (EBA) - statements on application of MiCA to ARTs and EMTs, July 2024.
  4. Regulation (EU) 2023/1114 (MiCA), Title III (Article 16 et seq.) and Title IV (Article 48 et seq.) on EUR-Lex.
  5. Autorité de Contrôle Prudentiel et de Résolution (ACPR) - French regulator authorising Circle Internet Financial Europe SAS as an EMI under MiCA, July 2024.