Cryptocurrency exchange Coinbase plans to delist unauthorized stablecoins in the European Union by December 30th.
Cryptocurrency companies are racing to comply with the European Union’s Markets in Cryptoassets (MiCA) regulations. The regulations require companies to be licensed in at least one EU member state.
Tether said MiCA introduces some complexities to stablecoins operating in the region and will introduce “technology-based solutions” to address those challenges.
Cryptocurrency exchange Coinbase (COIN) plans to delist stablecoins that have not been approved in the European Union by December in order to comply with the EU’s Crypto Asset Market Rules (MiCA).
“In light of our commitment to compliance, Coinbase intends to restrict the provision of services to EEA (European Economic Area) users related to stablecoins that do not meet MiCA requirements by December 30, 2024,” Coinbase said in a statement. Base said in a statement shared with CoinDesk. Friday.
Coinbase, the second-largest exchange after Bybit, is racing with other companies to comply with the European Union’s MiCA regulation, which requires companies to be licensed in at least one EU member state, according to CoinGecko data. are. The stablecoin rules will come into force on June 30th and will require stablecoin issuers to obtain an EU member state e-money license to operate within the 27-nation bloc.
Not all stablecoins have been able to obtain the necessary licenses within the EU. In July, Circle became the first global stablecoin issuer to receive an e-money institution license in the region, and the second largest stablecoin issuer. Tether, the largest stablecoin issuer, does not have an e-money license in the EU.
Tether said it applauds the EU’s efforts towards the creation of MiCA, but noted that stablecoins operating in the region pose some complexities. “Tether applauds the efforts of the EU regulators in establishing a structured framework, as it plays an important role in fostering growth in this sector. As stated, several aspects of MiCA could make the operation of EU-licensed stablecoins more complex and introduce new risks to both local banking infrastructure and the stablecoins themselves. A spokesperson for the stablecoin issuer told CoinDesk in a statement.
“To support users in the region and address these challenges, Tether is developing a technology-based solution that will be announced in due course and customized to meet the needs of the European market. ” added the spokesperson.
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Coinbase plans to share details of its plan in November, giving customers in affected European Economic Areas the option to switch to stablecoins issued by appropriately accredited issuers, such as Circles’ USDC and EURC. He said in a statement.
Bloomberg first reported the news about Coinbase’s move.
Read more: EU’s restrictive stablecoin rules coming into force soon, issuers are running out of time
Updated (October 4, 22:04 UTC): Updated to add Tether’s comment.
