Coinbase has begun delisting non-compliant stablecoins that do not meet the new MiCA rules, including USDT, and plans to complete the process by the end of 2024. Coinbase Global Inc. recently revealed plans to directly respond to the European Union’s new MiCA regulation. Applies from December 31st.
Just in: 🇪🇺 Coinbase to delist USDT in EU due to non-compliance.
— Watcher.Guru (@WatcherGuru) October 4, 2024
“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 to operate under new MiCA stablecoin regulations
The new MiCA regulation will require stablecoin issuers to secure e-money authorization within the EU. This will strengthen oversight and ensure consumer protection within the European Economic Area (EEA). Coinbase plans to begin notifying users about the transition in November. Additionally, the exchange will offer customers the option to convert their holdings into compliant stablecoins such as Circle’s USDC.
Coinbase has recently come under fire for transparency issues, particularly after the launch of Wrapped Bitcoin (cbBTC). The exchange’s decision to add reserve certification to cbBTC and delist Coinbase in the EU is an effort to regain favor with investors and Congress.
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MiCA’s new regulations will impact major cryptocurrency companies such as Tether Holdings Ltd., which issues the USDT stablecoin. Tether and its affiliates may struggle in the EU as they are unable to obtain the necessary approvals to operate under the new rules. Additionally, the new regulations will impact the stablecoin market as a whole, and the EU in particular, making the market subject to new norms.
Additionally, Coinbase is not the only major exchange to begin complying with the new MiCA rules. OKX, Bitstamp, Uphold, and other platforms are already working to limit the availability of non-compliant stablecoins. With these exchanges now functioning legally under MiCA, a new trend has become clear: companies are supporting regulation rather than fighting it.
