EU Sets January 2027 Deadline for Crypto Firms to Remove Unapproved Stablecoins

Crypto exchanges operating within the European Union face a January 8, 2027, deadline to cease offering stablecoins that lack authorization. Regulators have also stated that simply alerting customers to the associated risks does not constitute a solution.

The directive does not single out any specific token. However, Tether (USDT), a dollar-pegged stablecoin issued by the El Salvador-based firm Tether, currently lacks approval under EU regulations.

What EU Exchanges Must Discontinue by January 8

The European Securities and Markets Authority (ESMA), the EU's financial markets regulator, established this deadline in an opinion released on Thursday.

The requirement affects all licensed crypto firms operating under the Markets in Crypto-Assets Regulation (MiCA), the EU's legal framework for crypto companies and stablecoin issuers. Activities such as trading, custody, transfers, and investment advice are all covered.

Firms must prevent EU customers from acquiring additional units of any stablecoin that does not meet MiCA standards. Existing holders will retain an exit option. Up until the deadline, they can sell, convert, withdraw, transfer, or store their current holdings.

ESMA also determined that disclosure measures do not provide a valid justification.

“ESMA considers that reliance on warnings, disclosures or client acknowledgements would not sufficiently address the concerns identified in this Opinion,” read an excerpt in the opinion published Thursday.

The opinion serves as guidance for national regulators rather than a new law. ESMA stated it will track how each member state implements it.

Where Tether Stands as the Clock Runs

Tether has never obtained authorization under MiCA, a regulation requiring major issuers to keep at least 60% of their reserves in bank deposits.

Tether holds the bulk of its assets in US government debt. Consequently, it allowed USDT to be removed from EU exchanges rather than altering its strategy. CEO Paolo Ardoino has voiced opposition to MiCA's bank-deposit requirement.

When MiCA becomes safer for consumers and stablecoin issuers, then we might reconsider.

— Paolo Ardoino 🤖 (@paoloardoino) July 23, 2025

By contrast, rival issuer Circle holds a French license for its USDC token, obtained in 2024. Circle has since supported a MiCA modification that could allow Tether to reenter. The proposal, known as equivalence, would permit the EU to accept the home-country regulations a company already follows, eliminating the need for a separate EU-specific stablecoin.

“Equivalence is emerging as a compelling alternative to the multi-issuance model, currently the only possible regulatory pathway for these global stablecoins under MiCA,” said Patrick Hansen, Circle’s head of EU policy.

Tax rules are also advancing. Greece released a draft bill on Thursday proposing a 10% tax on crypto gains exceeding €500 annually. The bill is scheduled for parliamentary debate in November.

Greece currently lacks a comprehensive framework for taxing crypto. Across the EU, rates vary from 8% to 30%, with no standardized system in place.