Coinbase Plans to Remove USDT Ahead of EU Crypto Rule Changes

As Europe prepares to enforce new crypto regulations under the Markets in Crypto-Assets Regulation (MiCA), exchanges are taking significant steps to comply.

Coinbase’s European branches, including Coinbase Germany and Coinbase Custody International, will delist six stablecoins, including Tether’s USDT, on December 13. This move aims to align with MiCA’s requirements, which will fully come into effect by the end of December. However, Coinbase will continue supporting USDC and the euro-pegged EURC, reflecting its commitment to regulatory adherence.

While the delistings target coins like USDT, PAX, PYUSD, GUSD, GYEN, and DAI, questions remain over the precise regulatory status of USDT. The European Securities and Markets Authority (ESMA) has yet to provide clear guidance, leaving uncertainty over whether USDT fails to meet MiCA’s standards.

Tether, however, remains confident in its ability to adapt, despite recently halting its euro-backed stablecoin, EURt, due to low demand.

Tether has criticized what it sees as hasty decisions by some exchanges to delist stablecoins, arguing that they may be acting in self-interest. Nevertheless, the company plans to introduce MiCA-compliant projects, such as EURq and USDq, while maintaining its presence in Europe.

This regulatory shift underscores the high stakes for stablecoins in Europe, with exchanges and issuers navigating complex rules to secure their positions in a rapidly evolving market.