Move aims to comply with the EU’s new MiCA regulations.
Coinbase has announced plans to delist stablecoins that fail to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation by the end of 2024. The decision impacts stablecoins operating within the European Economic Area (EEA) and underscores a major step towards aligning with Europe’s stricter rules on digital assets.
MiCA Rules to Take Effect in 2024
The MiCA regulation, set to come into force in June 2024, requires all stablecoins in Europe to obtain an e-money licence from an EU member state. This rule aims to ensure consumer protection and financial stability in the growing digital asset market. Stablecoins like Tether (USDT), which are not yet authorised to operate in Europe, will be significantly impacted by these changes.
Coinbase Offers USDC Conversion
To facilitate the transition, Coinbase will offer its EEA customers the option to convert non-compliant stablecoins to MiCA-compliant alternatives. This includes Circle’s USD Coin (USDC), which already meets the required legal standards. Further details for users will be released in November 2024, ahead of the December 30 deadline.
Coinbase’s decision mirrors actions by other major cryptocurrency exchanges such as OKX and Bitstamp, which have already restricted access to non-compliant stablecoins like USDT. The new rules will apply not only to stablecoin issuers but also to all crypto exchanges operating in Europe, ensuring they adhere to the latest legal requirements.
Preparing for MiCA Compliance
Coinbase’s move highlights the growing trend among crypto exchanges to adjust to increasingly stringent regulations. Earlier this year, Binance launched a new stablecoin, Eurite (EURI), to comply with MiCA regulations. With USDC expected to take a leading role in the European market, the shift represents a significant change in how digital assets will be managed under MiCA.
