Popular cryptocurrency exchange Coinbase plans to delist all stablecoins that do not comply with new European Union regulations by the end of 2024. This is an important move for crypto exchanges as the region prepares for full implementation of the crypto asset market. (MiCA) framework. Additionally, stablecoins like Tether (USDT) will face a tough time due to the latest announcements from crypto exchanges.
Coinbase announces large-scale stablecoin delisting initiative in Europe
The Market in Cryptocurrency Regulation (MiCA) aims to tighten control over the cryptocurrency sector and is expected to be fully implemented by the end of the year. Issuers of stablecoins are now required to obtain electronic money authorization from at least one member state, and this requirement is already in place as of June 30, 2024. Meanwhile, regulations on virtual currency exchanges including Coinbase are expected to become mandatory by December 31st.
“Given our commitment to compliance, we will no longer provide services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024,” a Coinbase spokesperson said Friday, as reported by Bloomberg. We’re going to limit it.”
The exchange will soon provide an update on its plans and outline options for users to convert their holdings into EU-compliant stablecoins such as Circle’s USD Coin (USDC). Earlier this year, Circle became the first MiCA-compliant stablecoin issuer. Conversely, the impending delisting is expected to impact major tokens such as Tether’s USDT, the world’s most dominant stablecoin.
Tie it up to withstand the heat?
Tether Holdings has not yet received the necessary permits to continue offering $120 billion of USDT within Europe. This raises questions about the future availability of assets across the continent. Tether representatives have not yet commented on the situation.
Additionally, other popular crypto exchanges are also moving in response to regulatory changes. OKX, Bitstamp, and Uphold have already restricted access to Tether’s stablecoin in Europe ahead of the full enforcement of the MiCA rules.
The new framework is designed to more clearly monitor the cryptocurrency industry, with a particular focus on stablecoins. These issuers therefore need to ensure compliance in order to operate in the European market.
In an attempt to fill the gap left by Tether’s potential exit, several companies, including Robinhood and Revolut, are exploring the possibility of issuing their own stablecoins. Additionally, Ripple is also building the RLUSD stablecoin.
Also read: Ripplemint 10 million RLUSD: A big step in the stablecoin ecosystem
