In a bid to align with new EU regulations, cryptocurrency exchange Coinbase is set to remove stablecoins that fail to comply with the stricter oversight enforced by the European Union’s Markets in Crypto-Assets Regulation (MiCA). This initiative aims to exert firmer control over the rapidly evolving digital asset sector.
Coinbase has reportedly sealed a timeline, targeting December 2024 to delist noncompliant stablecoins from its European platform. Users from the European Economic Area (EEA) are promised a selection of conversion options to compliant stablecoins, notably Circle’s USD Coin which has been one of the earliest to toe the MiCA line.
The cut-off set by MiCA for available stablecoins in the EEA is an e-money license, validated by at least one EU member nation. As regulations tighten around digital currencies, this could adversely affect tokens such as Tether’s USDt USDT, which risks being ousted from the Coinbase platform without the necessary licensing.
The Coinbase action plan mirrors efforts taken by other crypto platforms like OKX, Bitstamp, and Uphold, which have also implemented measures to minimize access to noncompliant stablecoins. While the stablecoin market competition continues to intensify, ventures such as Robinhood and Revolut are establishing their own stablecoins to rival Tether and Circle.
As Coinbase offers conversion to the compliant USDC, a surge in trading has been seen which could further cement its standing in the region, possibly establishing it as the go-to choice for users seeking MiCA-regulatory-approved digital assets.