Coinbase plans to remove all non-compliant stablecoins from its platform in the European Economic Area (EEA) by the end of the year.
The move is in line with the company’s efforts to comply with the European Union’s upcoming Market in Crypto Assets (MiCA) regulations. MiCA aims to establish a regulated digital asset framework that balances user protection and fostering innovation.
MiCA’s stablecoin guidelines took effect in June, but broader regulation of crypto companies begins on December 31st. These rules require stablecoin issuers to obtain e-money authorization in at least one EU member state. The regulation also sets out strict rules for crypto asset service providers (CASPs), including centralized exchanges.
Coinbase already supports MiCA-compliant stablecoins, including Circle’s USD Coin (USDC) and the euro-backed EURC. The platform plans to offer users the option to convert to these approved stablecoins in the coming months.
The exchange has also designated Ireland as a MiCA-compliant hub, allowing it to operate across the EU.
Coinbase had not yet responded to CryptoSlate’s request for additional comment as of press time.
Affected tethers
This delisting could have a major impact on major stablecoins such as Tether’s USDT, the largest stablecoin by market capitalization. Tether CEO Paolo Ardoino recently warned that strict reserve requirements could pose systemic risks for banks and digital assets.
At the time of writing, Tether had not yet responded to CryptoSlate’s request for comment.
Meanwhile, Coinbase’s delisting strategy mirrors steps taken by other exchanges such as Binance and Bitstamp.
In June, Bitstamp delisted Tether’s European pegged stablecoin EURT for not meeting MiCA requirements. The platform also said it will not list tokens that do not comply with MiCA’s electronic money token (EMT) regulations.
Binance is taking a similar approach by restricting certain services within a region. These restrictions include prohibiting unauthorized stablecoin purchases and transfers, limiting new borrowing options, and more.
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