12:05 ▪ 3 min read ▪ by Fenelon L.
Coinbase, one of the leading cryptocurrency exchanges, plans to remove stablecoins that do not comply with MiCA regulations from its European platform by the end of December 2024. The decision is part of the company’s efforts to comply with new European regulatory requirements. Digital asset sector union.
MiCA compliance, challenges for stablecoin issuers
The MiCA Regulation (Markets in Cryptoassets), which came into force on June 30, imposes strict new rules on European crypto market participants.
One of the main requirements for stablecoin issuers is to obtain an electronic money license in at least one EU member state. This measure aims to strengthen the stability and security of the cryptocurrency market, especially stablecoins that play an important role in the ecosystem.
In light of these new requirements, Coinbase announces its intention to restrict the provision of services to users in the European Economic Area (EEA) for stablecoins that do not meet MiCA requirements by December 30, 2024 I did.
Some large issuers have already obtained the necessary approvals, such as Circle, which issues USD Coin (USDC). However, other important companies such as Tether have not yet taken this regulatory action.
This situation puts a lot of pressure on exchange platforms like Coinbase, which need to ensure that they only offer assets that comply with current legislation.
A drastic change in the virtual currency situation in Europe
The announcement from Coinbase marks a significant turning point for the European cryptocurrency market. By removing non-compliant stablecoins, platforms could redefine the power relationship between different issuers.
Therefore, users in the European Economic Area (EEA) will be provided with the option of converting to a compliant stablecoin, leading to large amounts of tokens like USDC to the detriment of other historical players like USDT. It has the potential to drive mass adoption.
This decision by Coinbase is part of a broader trend seen among other major sector players. Platforms such as OKX, Bitstamp, and Uphold have already taken similar steps to restrict access to non-compliant stablecoins.
While this regulatory evolution poses challenges, it also appears to have the potential to open up new opportunities for the European cryptocurrency ecosystem. We are witnessing the emergence of new stablecoin projects specifically designed for the European market. A key example is the development of EURT, a euro-pegged stablecoin, scheduled to launch on the Stellar blockchain.
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Fenelon L.
Passionate about Bitcoin, explorer of blockchain and cryptography, and a challenger at the forefront of communication. We guarantee you a free life and financial freedom, and we guarantee you a safe life so you can use your Bitcoin safely.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
