Coinbase is set to remove all stablecoins that fail to meet regulatory standards in the European Economic Area (EEA) by the end of the year as part of its compliance with tightening EU regulations.
This move follows a trend among various crypto exchanges that have also delisted Euro-based stablecoins to adhere to new rules.
The delisting plans from Coinbase align with the EU’s upcoming full enforcement of the Markets in Crypto Assets (MiCA) framework, which mandates that stablecoin issuers acquire e-money authorization from at least one EU member state. A representative from Coinbase indicated that services related to non-compliant stablecoins will be restricted for EEA users by December 30, 2024. An announcement detailing how users can convert to compliant stablecoins like Circle’s USDC is expected in November.
Circle has already positioned itself as a compliant issuer in the EU by obtaining an Electronic Money Institution license in July. Circle’s CEO, Jeremy Allaire, highlighted the potential of the EURC stablecoin, noting its compliance as a key competitive advantage.
MiCA aims to enhance accountability in the crypto sector by enforcing stricter oversight, particularly concerning risk management and banking practices. This initiative is designed to boost consumer confidence amid evolving regulatory standards.
Meanwhile, Tether’s USDT stablecoin faces potential regulatory challenges as it has resisted compliance with MiCA’s requirements, particularly regarding reserve management. If Tether fails to adapt, it risks delisting and a diminished market presence as global regulatory scrutiny increases. Observers suggest that Coinbase may remove USDT from its platform by the year’s end, reflecting a broader trend toward regulatory adherence in the region.
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