Coinbase plans to remove all non-compliant stablecoins from its platform in the European Economic Area (EEA) by the end of the year.
This move aligns with the company’s efforts to adhere to the European Union’s upcoming Markets in Crypto-Assets (MiCA) regulations. MiCA seeks to establish a regulated digital asset framework that balances user protection with the promotion of innovation.
While MiCA’s stablecoin guidelines took effect in June, broader regulations for crypto firms will start on Dec. 31. These rules require stablecoin issuers to obtain e-money authorization in at least one EU member country. The regulations also set stringent rules for Crypto-Asset Service Providers (CASPs), including centralized exchanges.
Coinbase already supports MiCA-compliant stablecoins, such as Circle’s USD Coin (USDC) and the Euro-backed EURC. The platform plans to provide users with conversion options to these approved stablecoins in the coming months.
Also, the exchange has designated Ireland as its hub for MiCA compliance, allowing it to operate across the EU.
Coinbase has yet to respond to CryptoSlate’s request for additional commentary as of press time.
Tether impacted
This delisting could significantly affect major stablecoins like Tether’s USDT, the largest stablecoin by market cap. Tether CEO Paolo Ardoino recently warned that the strict cash reserve requirements could present systemic risks to banks and digital assets.
Tether has yet to respond to CryptoSlate’s request for comment as of press time.
Meanwhile, Coinbase’s delisting strategy mirrors actions taken by other exchanges like Binance and Bitstamp.
In June, Bitstamp delisted Tether’s Euro-pegged stablecoin EURT for not meeting MiCA requirements. The platform also stated it won’t list any tokens that fail to comply with MiCA’s Electronic Money Tokens (EMT) regulations.
Binance has taken a similar approach by limiting certain services in the region. These restrictions include barring the purchase and transfer of unauthorized stablecoins and limiting new borrowing options.