- Coinbase to delist all non-compliant stablecoins in the EEA by December 2024.
- MiCA regulation forces exchanges to restrict unauthorized stablecoins.
- Tether among stablecoins facing delisting due to EU MiCA rules.
Coinbase plans to delist all unauthorized stablecoins in the European Economic Area by the end of 2024. This decision is in response to the upcoming implementation of the European Union’s Markets in Crypto Assets regulation, which imposes additional requirements on stablecoin issuers.
🚨🚨 Coinbase will be delisting Tether (USDT) this year!
The next couple of months are going to truly define the future of crypto. #XRP #XRPCommunity #XRPHolders pic.twitter.com/L8ddMtycKf
— 𝟸𝟺𝙷𝚁𝚂𝙲𝚁𝚈𝙿𝚃𝙾 (@24hrscrypto1) October 3, 2024
Coinbase Adjusts to MiCA Rules
MiCA’s stablecoin laws, which went into partial effect on June 30, 2024, require stablecoin issuers to obtain e-money authorization from at least one EU member state.
Stablecoins that fail to achieve these conditions will face restrictions. The world’s largest stablecoin, Tether (USDT), currently lacks the necessary authorization to operate in Europe.
Impact on Coinbase Users
Coinbase will block access to non-compliant stablecoins for European users by December 31, 2024. The exchange intends to give consumers the option of converting their stablecoins to compliant alternatives such as Circle’s USD Coin (USDC). Coinbase will provide additional details on the process next month.
Other Exchanges Follow Suit
Coinbase is not alone in adopting MiCA regulations. Kraken, Bitstamp, and Uphold have already restricted Tether in Europe. These exchanges are also attempting to meet MiCA’s requirements. Meanwhile, other companies, including Robinhood and Revolut, are also planning to develop their own stablecoins to compete in the European market.
In related news, Deutsche Bank-owned DWS plans to launch the first German-regulated euro-denominated stablecoin in 2025, aiming to establish leadership in the emerging cryptocurrency market.
The implementation of MiCA will fundamentally alter the European cryptocurrency market. The move by Coinbase to remove unapproved stablecoins from its listing is a proactive measure to comply with regulations. As the December 2024 deadline approaches, more exchanges are likely to update their listings to meet MiCA’s requirements.
