ESMA Clarifies Supervisory Expectations for Services Handling Unauthorised Stablecoins

The European Securities and Markets Authority (ESMA), the European Union's financial markets regulator and supervisor, has set out supervisory expectations regarding services related to unauthorised stablecoins. Under the framework established for digital finance and innovation, the regulatory authority outlined how market participants should handle stablecoins that lack proper regulatory authorisation in the EU. ESMA's guidance aims to clarify compliance standards for entities facilitating crypto-asset transactions and stablecoin services, ensuring investor protection and market stability across member states.