ESMA's Guidance On Non-MiCA Compliant Crypto-Asset Services

On 17 January 2025, the European Securities and Markets Authority (ESMA) issued a statement on providing crypto-asset services related to Asset-Referenced Tokens (ARTs) and Electronic Money Tokens (EMTs) which are not compliant with EU Regulation 1114/2023 on markets in crypto-assets (MiCA).

This follows the recent publication of a related FAQ by the European Commission.

ESMA's position

• Competent authorities across the EU must ensure that crypto-asset service providers (CASPs) in the jurisdictions comply with requirements under Titles III and IV of MiCA, which govern public offering and seeking the admission to trading of ARTs and EMTs by the end of Q1 2025. ESMA's expectation is that the provision of services in relation to such ARTs and EMTs ceased by the end of January 2025. CASPs may provide "sell-only" services until the Q1 2025 to ensure the orderly wind-down of positions.