Cryptocurrency exchange Coinbase will delist stablecoins that do not comply with the European Union’s Market for Cryptoassets (MiCA) regulations for customers in the European Economic Area (EEA) by December 30th.
The move is in line with the EU’s efforts to introduce stricter controls on crypto assets, requiring stablecoin issuers to obtain e-money authorization in at least one member state.
The new MiCA regulation is expected to be fully implemented by January 2025 and is part of a broader digital finance package aimed at standardizing the cryptocurrency landscape across the EU. Covers various aspects such as issuance, offering, and trading of crypto assets.
MiCA divides crypto assets into categories such as electronic money tokens (EMTs) and asset reference tokens (ARTs), with the greatest impact on fiat-backed stablecoins. This regulation is rated as one of the most comprehensive in the world.
A Coinbase spokesperson told Decrypt that the exchange will announce details of its migration plan in November to help European customers switch to compliant stablecoins, including USDC and EURC.
This follows Circle’s recent move to secure an EU stablecoin license, making it the first global stablecoin issuer to become MiCA compliant.
“We regularly review the assets we offer to our customers on our platform to ensure they comply with applicable regulations. “We plan to share details about our migration plans to support you, including options to switch to stablecoins that have achieved compliance under MiCA, such as USDC and EURC,” the spokesperson said. .
MiCA imposes stricter requirements on stablecoin issuers, requiring them to maintain sufficient reserves to ensure the stability of their tokens. This part of the regulation directly impacts platforms like Coinbase as they are required to delist stablecoins that do not comply with these standards.
Edited by Andrew Hayward
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