Coinbase Global Inc. has announced plans to delist all non-compliant stablecoins from its European platform by the end of December 2024. This decision is in response to the upcoming implementation of the European Union’s Markets in Cryptoassets (MiCA) regulation.
The new regulation aims to create a standardized regulatory framework for crypto assets across the EU and is expected to come into full force by December 31, 2024.
Coinbase announces MiCA Stablecoin compliance deadline
Coinbase’s announcement specifies that stablecoins that do not meet the new MiCA requirements will be subject to delisting. The MiCA regulation, which came into force on June 30, requires stablecoin issuers to obtain electronic money authorization within the EU. This regulatory measure will strengthen the oversight of crypto assets within the European Economic Area (EEA) and ensure consumer protection.
Additionally, the cryptocurrency exchange will provide an update on the transition in November, giving users the option to convert their holdings into compliant stablecoins such as Circle’s USDC. This proactive compliance measure puts Coinbase at the forefront of adhering to regulatory expectations in the crypto market.
Stablecoin market and impact on EEA users
Impending regulation and Coinbase’s compliance strategy could significantly change the European stablecoin landscape. Tether Holdings’ USDT, the largest stablecoin issuer, may face challenges as it has not yet secured the necessary permissions to operate under the new EU framework. This regulatory scenario could set a precedent for other crypto exchanges to follow suit and align their operations with MiCA guidelines.
Additionally, other major platforms such as OKX, Bitstamp, and Uphold have already taken steps to restrict the use of non-compliant stablecoins such as USDT to European users. Such moves highlight the growing trend of regulatory alignment within the cryptocurrency industry.
Despite increased regulation in the cryptocurrency industry, adoption of stablecoins like USDC continues to thrive. Most recently, a partnership between MiCA-compliant Circle and MHC Digital expanded the USDC stablecoin to Australia and the Asia-Pacific region.
Additionally, Coinbase Chief Legal Officer Paul Grewal highlighted the inconsistency in how the US Securities and Exchange Commission (SEC) handles legal arguments in various crypto cases. Grewal criticized the SEC’s differing positions on whether digital asset transactions qualify as securities transactions. This issue has caused confusion and uncertainty in the crypto industry
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Ronnie Mugendi
Ronnie Mugendi is a veteran crypto journalist with 4 years of professional experience and has contributed significantly to various media outlets regarding cryptocurrency trends and technology. With over 4,000 articles published in various media outlets, we aim to inform, educate and introduce more people to the world of blockchain and DeFi. In addition to his journalism career, Ronnie enjoys the thrill of riding his bike and exploring new roads and landscapes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
