Cryptocurrency exchange Coinbase has announced plans to delist some stablecoins in the European Economic Area.
The move comes as the industry prepares for tighter regulation under new European Union guidelines. The EU’s Markets in Cryptoassets (MiCA) regulation, introduced in early 2023, is expected to come into full force from December 2024. The regulation requires stablecoin issuers, whose tokens are pegged to stable assets to mitigate price volatility, to comply with the following strict standards: Transparency, liquidity and consumer protection.
Coinbase prepares for regulatory compliance
Coinbase sent out an email clarifying its plans to comply with regulatory requirements. The company informed users that by December 30, 2024, it will restrict services for EEA users related to stablecoins that are not MiCA compliant.
In November, the platform will offer EEA customers the option to migrate to stablecoins issued by accredited providers, such as Circle’s USDC and EURC, which are tied to USD and EUR, respectively. According to Reuters, adoption of stablecoins has increased in recent years, with companies such as PayPal incorporating them into their operations as the digital asset industry continues to integrate into mainstream finance.
More developments from Coinbase
In July 2024, Coinbase rolled out a new wallet web application, providing users with an integrated platform to manage their entire on-chain digital asset portfolio. This web app allows users to connect to multiple wallets, creating the “ultimate hub for everything on-chain.” According to a statement from Coinbase executives, the platform aims to be a “one-stop destination” for interacting with people, communities, and businesses within the blockchain ecosystem.
At the time, Coinbase officials said that user feedback played an important role in developing the new platform. This feedback highlighted the need for an easy-to-use hub where users can manage their crypto assets and stay informed about blockchain activity.
