Until recently, no specific guidance was available on the general requirement to delist or the delisting process. However, the European Securities and Markets Authority (ESMA) has now issued guidance for the delisting of e-money tokens (EMTs) and asset-referenced tokens (ARTs) that do not comply with MiCA regulations. This guide defines such EMTs and ARTs as ‘non-MiCA compliant EMTs and ARTs’.

This guide contains practical steps and considerations for implementing a delisting process, drawing on ESMA's guidelines and Samar Law’s experience with financial regulation.

What CASPs are required to follow the guidelines?

CASPs providing the following activities are covered by the guidelines:

• Operating a trading platform for crypto-assets
• Exchange of crypto-assets for funds or other crypto-assets
• Reception and transmission of orders for crypto-assets
• Execution of orders for crypto-assets on behalf of clients

Custody and transfer of non-MiCA compliant EMTs and ARTs remain permissible. However, CASPs providing custody or transfer services must ensure that users are adequately informed of any restrictions and risks associated with services involving non-compliant EMTs or ARTs. Examples could be less favourable transfer conditions or higher custody fees.

What EMTs and ARTs should be delisted?

CASPs must ensure that all EMTs and ARTs listed on their platforms comply with MiCA Regulation and ESMA guidelines. Non-compliance primarily relates to the issuer's status, as MiCA mandates that only authorized entities can issue EMTs and ARTs. Consequently, any EMTs or ARTs issued by unauthorized entities must be delisted. 

No specific EMTs or ARTs have been named by any authority.

Steps for delisting EMTs and ARTs

The following deadlines should be effectively managed for the delisting process.

By January 31, 2025, the following three steps must be completed:

Step 1 – Cease trading and exchange activities‍

You must stop all trading, buying, and exchange functionalities for the non-MiCA compliant ARTs and EMTs. For example, if your platform allows the exchange of the crypto-asset against fiat currency or other crypto-assets, these pairs should no longer be available for users to transact. Similarly, services like order execution and automated trading bots connected to your platform must also stop processing orders for the affected EMT and ART.

Trading pairs involving the non-MiCA compliant ARTs and EMTs should be removed entirely from order books and platform services to prevent new transactions.

Step 2 – Restrict deposits

You must ensure the non-MiCA compliant ARTs and EMTs are no longer visible as an active option for deposits. Users should not have access to deposit addresses or any functionality that allows them to add the non-MiCA compliant ARTs and EMTs to their wallets, ensuring no further inflows occur. If deposits cannot be stopped entirely due to the nature of the blockchain, implement systems that flag and notify users about any deposits into these addresses.

For example, users should not see deposit addresses for the non-MiCA compliant ARTs and EMTs in their wallets on the platform. Likewise, you must restrict any new features or integrations involving the non-MiCA compliant ARTs and EMTs.

Step 3 – Enable and maintain sell-only mode

You must provide and enable a sell-only mode for the delisted crypto-asset. This feature lets your users sell their holdings or withdraw their balances. This option should remain available until the final deadline, which is March 31, 2025. Keeping this functionality active ensures users have sufficient time to manage their assets and prevents service interruptions.

Client Communication

ESMA emphasizes that one of the material parts of delisting is effective communication with users. As soon as the decision to delist is made, you should notify all affected users. The notification should include:

• A clear explanation of the delisting decision and its regulatory basis.
• A step-by-step guide on how they can sell or withdraw their holdings.
• Specific deadlines for when services related to the non-MiCA compliant ARTs and EMTs will be discontinued.

For example, if trading functionality for non-MiCA compliant ARTs and EMTs ceases, users should receive notifications as soon as possible through multiple channels, such as emails, in-platform alerts, and app notifications. A frequently asked questions (FAQ) page addressing common concerns can further support users during this process.

Internal coordination

Internally, it is crucial to align your teams on the process. The operations team should handle the technical aspects of disabling trading pairs and deposit functionalities. The customer support team must be equipped with clear guidance to assist clients in transferring or selling their holdings. Compliance teams should monitor transactions to ensure no unauthorized activity occurs during this period.

For example, let us consider a scenario during the sell-only period where compliance teams notice an unusual spike in sell orders for the delisted EMT or ART. A single account is placing large sell orders at very short intervals—e.g., every second—well beyond what typical users are doing. This may indicate using an automated bot to exploit the sell-only function or manipulate prices. In this case, the compliance team should flag the account, pause its activity temporarily, and investigate further. If the behaviour is legitimate, such as an institutional client managing a large portfolio, the account can be cleared. Otherwise, measures such as rate-limiting sell orders or enforcing stricter monitoring thresholds can prevent further abuse and ensure fairness for all users.

Timeline for delisting

The statement issued by ESMA can be found here.

Continuous updates

We will continuously update this guide as specific EMTs or ARTs are deemed non-compliant by the Danish FSA or ESMA.