Cryptocurrency exchange Coinbase has announced that it will delist some stablecoins by the end of the year in preparation for stricter regulations in Europe.
The legal framework for the European Union’s Market for Cryptoassets (MiCA) is scheduled to be fully implemented from December, and stablecoin issuers will be required to obtain an electronic money license issued by an EU member state in order to operate within the region. is required.
Coinbase is the world’s third-largest cryptocurrency exchange with more than 33 million monthly visitors, and is moving quickly to meet European Union regulations that introduce strict rules on transparency, liquidity, and consumer protection. I have been working on this.
In order to continue operating in the European market, a stablecoin issuer must obtain authorization to act as an electronic money institution, publish a white paper detailing key aspects of the token, and pass a “conformity assessment”. must ensure that key individuals are fit to operate within the regulations. framework.
“Given our compliance efforts, we intend to restrict the provision of services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024,” the company said in an emailed statement to Reuters. ” he said.
In November, Coinbase will offer customers in the European Economic Area an alternative to switching to regulated issuers tied to the euro on a 1:1 ratio, such as Circle’s EURC.
Earlier this year, Circle became the first stablecoin issuer to comply with MiCA regulations, obtaining an electronic money institution (EMI) license in hopes of facilitating mainstream adoption of digital currencies.
Tether, considered the largest issuer of stablecoins, does not yet have the required e-money license in the EU and, although it “applauds” the EU’s efforts to establish a legal framework, MiCA He told CoinDesk that the regulations are too complex and could be introduced. New risks to both local banking infrastructure and the stablecoins themselves.
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Despite the complexity, Coinbase is clearly taking no risks when it comes to meeting the provisions of the law.
That’s partly because Britain’s Financial Conduct Authority recently slapped the company with a hefty fine for breaching requirements that prevented it from servicing high-risk customers.
The £3,503,546 fine was passed to CB Payments Limited, which acts as a gateway for customers to trade crypto assets through other entities within the Coinbase group, but is not registered to carry out those activities in the UK. It wasn’t.
