Coinbase is preparing to delist stablecoins that do not comply with European regulations by the end of the year.
As Bloomberg News reported on Friday (October 4), the move comes as the European Union’s Crypto Asset Market Regulation (MiCA) introduces stricter supervision of cryptocurrency companies.
Coinbase said, “In light of our compliance efforts, we intend to restrict the provision of services to EEA (European Economic Area) users related to stablecoins that do not meet MiCA requirements by December 30, 2024.” .
The company also noted that EEA users will have the option to convert to a compliant stablecoin, such as Circle’s own USD coin.
Under the MiCA regulation, which came into force on June 30, all stablecoins available in the EEA must obtain an e-money license in at least one EU member state.
As noted by Bloomberg and other news outlets, this regulation directly impacts stablecoins such as Tether’s USDT, which could be removed from Coinbase’s platform unless they receive the appropriate approvals.
To this end, Tether told the website Crypto Briefing last week that it is working on a solution specifically designed for the European market.
“As we have consistently stated, several aspects of MiCA will make the operation of EU-licensed stablecoins more complex and pose new risks to both local banking infrastructure and the stablecoins themselves. “Possible,” the company said.
“Tether is developing technology-based solutions that will be announced in due course and will be customized to meet the needs of the European market. We are very excited about our future product strategy. Masu.”
As PYMNTS wrote in July, the emergence of MiCA has led observers to wonder if the “wild west” is over for the digital asset sector.
“As we approach the second quarter of the 21st century, the digital asset and cryptocurrency industry shows no signs of slowing down,” the report said. “Having stricter disclosure requirements, regular audits of cryptocurrency companies, and more robust capital reserve requirements will help build trust and transparency across markets. The introduction of the Coin Clause will put the EU at the forefront of cryptocurrency regulation.”
In other stablecoin news, PYMNTS last week examined efforts by PayPal and Visa to move into the space, arguing that this signals the maturation of the stablecoin ecosystem.
“These leading companies are working not only to expand the use cases for stablecoins, but also to strengthen their stability and legitimacy, and this work will improve how stablecoins are perceived and used in the broader financial community. “This could lead to changes in the future,” the report said.
See more: Coinbase, Crypto, Crypto Regulation, Cryptocurrency, European Economic Area, Crypto Law Market, MICA, News, PYMNTS News, Stablecoins, Tether, USDC, USDt, Latest News
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