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EU Regulators Force Coinbase Removal of 'Non-Compliant' Stablecoins
Tether's USDT could soon be delisted by Coinbase as MiCA regulation goes into full effect.
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The EU's MiCA regulations, fully effective by the end of 2024, will enforce stricter rules on stablecoin issuers and crypto exchanges, meaning Coinbase will delist non-compliant stablecoins like Tether’s USDT by year-end.
What's the Scoop?
- MiCA Implementation Timeline: Stablecoin issuers must hold authorization in at least one EU member state as of June 30, with broader guidance for exchanges and other firms taking effect by December 31.
- Conversion Plans: Coinbase will update users in November, providing options to convert to compliant alternatives, like Circle’s USDC.
- Market Impact: Other exchanges, including OKX and Bitstamp, have already restricted access to Tether’s USDT ahead of MiCA’s full implementation.
Bankless Take:
Coinbase's move to remove unapproved stablecoins per MiCA exemplifies the growing pains that come from firming up regulation. It may also begin to reshape the stablecoin landscape, reducing USDT's availability in the EU and impacting the largest stablecoin’s market share. In turn, this regulation could pave the way for competitors, such as Circle’s USDC, or new entrants like PayPal or Revolut, to capture market share.
Circle Gets MiCA Stablecoin Issuer License on Bankless
They will issue the USDC and EURC stablecoins in full compliance with Europe’s new regulatory framework.
David C