Tokens like USDT, created by Tether Holdings, are likely to take a hit if Coinbase Global delists all unapproved stablecoins from EU crypto exchanges by the end of the year.
By the end of the year, the European Union will fully implement MiCA, a new regulation to regulate crypto businesses.
Under the MiCA Regulation, which came into force on June 30, stablecoin issuers are now required to obtain e-money authorization in at least one member state.
Authorities are preparing for new crypto regulations in Europe
The virtual currency business is at a critical moment. We need to prepare some new rules, mainly around MiCA.
Cryptocurrency exchanges and other businesses in the bloc will be subject to new regulations starting December 31st.
When Coinbase announces its intentions next month, users will be able to convert their stablecoins to versions that are compliant with EU regulations, such as USDC (Circle Internet Financial Ltd.).
Tether, the world’s leading stablecoin issuer, still needs approval to offer $120 billion in USDT in Europe.
Bitstamp, OKX, and Uphold are among the exchanges that took steps to restrict access to the Tether stablecoin by European users prior to the implementation of MiCA.
Tether representatives reiterated the company’s previous claims that it is developing technological solutions to distribute its products to the European market.
Other companies are also considering stablecoins, including Robinhood Markets and Revolut.
Several companies, including Robinhood Markets and Revolut, are hoping that tougher laws in Europe and elsewhere will eventually force Tether Holdings to relinquish control of the fast-growing $170 billion digital asset market. , is considering launching a stablecoin.
Two of the most respected fintech companies, Robinhood and Revolt, are exploring the possibility of issuing their own stablecoins.
Robinhood begins cryptocurrency remittances in Europe
Robinhood Crypto launched in Europe in December 2023 and will now allow customers to withdraw their cryptocurrencies to self-custodial wallets or third-party platforms.
However, they may oppose moving forward with the plan. Many new entrants need more time to compete with Tether’s USDT.
Almost $120 billion worth of stablecoins have been exchanged, accounting for over 63% of the market.
Stablecoins are special tokens whose purpose is to keep their value constant.
According to data from CoinGecko, USDC has a market capitalization of $36 billion, while other stablecoins are much smaller.
Given the company’s compliance efforts, Coinbase has announced that by December 30, 2024, stablecoins that are not compliant with MiCA regulations will be offered to customers within the European Economic Area (EEA). He said he plans to limit services.
