Coinbase is set to delist stablecoins that don’t comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024.
The move comes as the EU tightens control over the cryptocurrency sector, and firms like Coinbase adjust their offerings to meet the new standards.
On October 4, Coinbase confirmed that its European Economic Area (EEA) users will no longer have access to stablecoins that don’t meet the regulation’s requirements. However, they will have the option to convert their holdings to compliant stablecoins.
While Circle, the issuer of USD Coin (USDC) and Euro Coin (EURC), secured an Electronic Money Institution license in July 2024, becoming the second-largest stablecoin issuer in the region, Tether—the largest stablecoin issuer—has not yet obtained the necessary license.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA [European Economic Area] users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” Coinbase said in a statement.
MiCA, which took effect in June 2024 for stablecoin issuers, mandates that all stablecoins in the EEA hold an e-money license from an EU member state. This could affect major tokens like Tether’s USDT, which may be forced off Coinbase if it doesn’t obtain the necessary authorization.
As the deadline for MiCA compliance approaches, other exchanges such as OKX, Bitstamp, and Uphold have also taken steps to limit noncompliant stablecoins.
Meanwhile, Binance plans to impose restrictions on the availability of stablecoins in the European Union (EU) that are deemed “unregulated” under the EU’s new Markets in Crypto-Assets Regulation (MiCA). The exchange said could ultimately delist stablecoins from its European platforms.
Marina Parthuisot, who serves as the head of legal at Binance France, cited the lack of approved stablecoin projects in the region ahead of the upcoming European Union’s Markets in Crypto Assets (MiCA) regulation. There is no grace period specified for coins already on the market under this regulation, potentially leading to massive delistings.
MiCA was finalized back in June, and it’s set to make the EU the first major jurisdiction with comprehensive cryptocurrency regulations. It will allow exchanges and wallet providers to operate throughout the EU with just one license. However, the implications of this regulation for stablecoins and decentralized projects remain uncertain.
