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Usually, a trading restriction does not itself mean that custody or transfers must stop. ESMA said EU crypto-asset service providers (CASPs) should keep “mere custody and transfer” possible for non-MiCA-compliant asset-referenced tokens (ARTs) and e-money tokens (EMTs), while clearly informing clients about the restrictions and risks. This is a supervisory expectation, not a guarantee that every provider will support every token, network or withdrawal route.

What “non-compliant stablecoin” means under MiCA

“Stablecoin” is a common label, not the legal category that determines the treatment. MiCA distinguishes, among other crypto-assets, EMTs, which seek to maintain stable value by referencing one official currency, and ARTs, which reference another value or right, or a combination, subject to the regulation’s definitions. A token’s name or peg alone does not establish its classification or compliance status.

The relevant questions include how the token is classified, the issuer’s status, whether its offer to the public or admission to trading complies with MiCA or an applicable transitional arrangement, and which service a CASP provides. Where classification is uncertain, ESMA’s January 2025 statement says the CASP should consult its relevant national competent authority. See MiCA, Regulation (EU) 2023/1114 and ESMA’s statement of 17 January 2025.

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Which services may be restricted?

ESMA’s statement focuses on services that make a non-compliant ART or EMT available for trading or otherwise facilitate its acquisition. It says platforms are expected to stop offering non-compliant tokens for trading. Related order and exchange services are also expected to cease when they amount to an offer to the public.

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Service ESMA’s stated treatment What it can mean for a client
Platform trading or making the token available for trading Expected to stop for non-compliant ARTs and EMTs. A listing, buy button or other trading function may be removed. ESMA, 17 January 2025.
Receiving or transmitting orders, executing orders, or exchanging the token for funds or other crypto-assets Expected to cease where the service constitutes an offer to the public. A provider may restrict new purchases and related transactions. ESMA, 17 January 2025.
Sell-only service Could be maintained through the end of Q1 2025 to allow an orderly exit. This was part of the announced transition schedule, not an ongoing entitlement to sell through a provider today. ESMA, 17 January 2025.
Mere custody and transfer ESMA said these should remain possible. Check the provider’s current support, eligible networks and withdrawal conditions; the statement is not a promise of a particular route. ESMA, 17 January 2025.
Client-asset transfer after a CASP’s authorisation is withdrawn MiCA requires procedures for timely and orderly transfer of clients’ crypto-assets and funds to another CASP. This is a separate provider-authorisation rule, not the stablecoin-specific restriction on offering or trading a token. MiCA, Regulation (EU) 2023/1114.

What custody and transfer mean in practice

ESMA’s position distinguishes holding or transferring a token from services that facilitate its offer or acquisition. A trading halt therefore does not, by itself, establish that a client’s custody has ended or that an on-chain transfer is impossible. Equally, the fact that a provider permits a withdrawal does not show that it still permits buying, exchanging or selling the token through its platform.

MiCA’s ordinary custody obligations continue to matter. CASPs must safeguard clients’ ownership rights and must not use clients’ crypto-assets for their own account. Custody rules also address the client agreement, records of positions, a custody policy, segregation from the CASP’s own assets, and procedures to return assets or access means as soon as possible. See ESMA’s MiCA Article 70 guidance and ESMA’s MiCA Article 75 guidance.

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What to check if you already hold the token

  1. Read the provider’s latest notice. Look for the token’s exact name and any stated restriction on custody, deposits, withdrawals, trading or conversion.
  2. Confirm the withdrawal details. Check which network and destination types the provider supports, and whether there are account, timing or transaction conditions. Do not assume a route is available just because the token remains visible in your account.
  3. Separate withdrawal from conversion. A permitted transfer is not the same as an available sale or exchange. Verify the action you intend to take in the provider’s current interface or support information.
  4. Ask for clarification where status is unclear. The answer can depend on the token’s classification, its issuer and offer status, the CASP, and the specific service. ESMA directs CASPs to seek guidance from their relevant national competent authority when classification is in doubt.

The 2025 transition dates have passed

ESMA’s 17 January 2025 statement said acquisition-facilitating services should generally be restricted by the end of January 2025. It allowed a sell-only service to continue longer, through the end of Q1 2025, to give EU investors time to liquidate or convert holdings, and expected national authorities to ensure compliance as soon as possible and no later than the end of that quarter. These were announced transition milestones, not a current grace period.

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Custody support is not the same as issuer redemption

MiCA gives holders of ARTs a permanent right to redeem against the issuer under the regulation’s terms. That issuer obligation does not require an exchange to offer a particular conversion, custody or withdrawal route. This ART-specific point should not be automatically applied to EMTs; check their applicable legal framework and issuer terms. MiCA, Regulation (EU) 2023/1114.

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