European Union: ESMA adopted guidance on provision of certain crypto-asset services in relation to non-MiCA compliant ARTs and EMTs

On 17 January 2025, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued guidelines on the provision of certain crypto-asset services, specifying provisions relevant for crypto-asset service providers (CASPs) regarding non-MiCA compliant Asset-Referenced Tokens (ARTs) and Electronic Money Tokens (EMTs). Effective from 30 June 2024, CASPs must comply with MiCA regulations, ceasing services for non-compliant ARTs/EMTs by the end of Q1 2025. To facilitate an orderly transition, CASPs should restrict existing services, allow "sell only" transactions for liquidation, and inform EU investors about the changes. NCAs will guide this process and consider MiCA compliance in authorisation applications, aiming to minimise market disruptions.