Coinbase, one of the largest cryptocurrency exchanges, will delist unapproved stablecoins across the European Union by December 30, 2024 to comply with EU Markets in Crypto Assets (MiCA) regulations announced the decision to These rules require stablecoin issuers to hold an e-money license in at least one of the EU’s 27 member states in order to continue operating within the region.
According to a recent report by Camomile Shumba for CoinDesk, Coinbase emphasized its commitment to regulatory compliance in a statement sent to CoinDesk. By the end of the year, users in the European Economic Area (EEA) will be restricted from accessing stablecoins that do not meet MiCA standards. The exchange also confirmed that it will offer affected users the option to switch to a sanctioned stablecoin such as Circle’s USDC or EURC that is fully compliant with MiCA requirements.
The MiCA regulation for stablecoins will come into force on June 30, 2024, and requires companies to secure the necessary licenses to continue offering services within the EU. Circle, the second-largest stablecoin issuer, became the first in the region to receive an electronic money institution license in July. In contrast, Tether, the world’s largest stablecoin issuer, has yet to secure a license. Tether praised the EU’s regulatory efforts, but noted that the MiCA framework introduces complexity to stablecoin operations and could impact both local banking infrastructure and the stablecoins themselves.
To address these challenges, Tether has announced plans to develop technology-based solutions specifically tailored for the European market. Details of the solution have not yet been disclosed, but it is aimed at streamlining stablecoin operations under the new regulatory environment. Coinbase plans to disclose further information regarding its delisting plans in November.
Featured image via Coinbase
