(October 4): Coinbase Global plans to delist all unauthorized stablecoins from virtual currency exchanges in the European Economic Area by the end of the year, leaving tokens like Tether Holdings Inc.’s USDT could be a blow.
The European Union plans to fully implement new rules governing the cryptocurrency industry, known as MiCA, by the end of this year. Regulations for stablecoin issuers under MiCA came into effect on June 30th and require them to hold an e-money license in at least one member state. Guidance for virtual currency exchanges and other companies operating in the region will begin from December 31st.
“In light of our compliance efforts, we plan to restrict the provision of services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024,” a Coinbase spokesperson said in a statement Friday. ”.
Coinbase plans to provide an update on its plans next month, including an option for users to convert their stablecoins to EU-compliant versions like Circle Internet Financial Ltd.’s USDC.
Companies from Robinhood Markets Inc. to Revolut Inc. are considering launching stablecoins to counter the dominance of Tether, the world’s largest stablecoin issuer, but Tether has a US$120 billion market share in Europe. It has not yet received permission to provide USDT amounting to RM506.39 billion. A Tether spokesperson did not respond to a request for comment.
Other exchanges such as OKX, Bitstamp, and Uphold are already moving to restrict access to Tether’s stablecoin in Europe ahead of MiCA fully taking effect.
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