(Reuters) – Coinbase will delist certain stablecoins in the European Economic Area by the end of the year, the cryptocurrency exchange said on Friday, as the industry prepares for increased regulation in the region.
The European Union’s landmark cryptocurrency regulatory framework, known as the Markets in Cryptocurrency (MiCA) Regulation, introduced in early 2023, is expected to be fully applied by December.
The law requires issuers of stablecoins (cryptotokens whose monetary value is pegged to stable assets to protect them from wild fluctuations) to meet strict transparency, liquidity, and consumer protection standards. is required.
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“Given our commitment to compliance, we plan to restrict the provision of services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024,” says Top Cryptocurrency Exchange in the US said in an emailed statement.
In November, Coinbase will offer affected EEA customers the option to switch to accredited issuers like fintech company Circle’s USDC and EURC, whose values are pegged to the US dollar and euro, respectively.
Stablecoins have gained significant popularity in recent years due to the adoption of stablecoins by financial giants such as PayPal and the rapid integration of the once nascent digital asset sector into mainstream finance.
(Reporting by Manya Saini in Bengaluru; Editing by Shriraj Kaluvila)
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