Coinbase’s MiCA alignment in Europe to cause controversial delisting of major stablecoins like Tether’s USDT News ▸ EU ▸ Coinbase ▸ Stablecoins
Coinbase’s MiCA alignment in Europe to cause controversial delisting of major stablecoins like Tether’s USDT
Coinbase said it would urge its users to conver to compliant stablecoins like Circle's USDC.
2 min read
Updated: Oct. 4, 2024 at 3:12 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase plans to remove all non-compliant stablecoins from its platform in the European Economic Area (EEA) by the end of the year.
This move aligns with the company’s efforts to adhere to the European Union’s upcoming Markets in Crypto-Assets (MiCA) regulations. MiCA seeks to establish a regulated digital asset framework that balances user protection with the promotion of innovation.
While MiCA’s stablecoin guidelines took effect in June, broader regulations for crypto firms will start on Dec. 31. These rules require stablecoin issuers to obtain e-money authorization in at least one EU member country. The regulations also set stringent rules for Crypto-Asset Service Providers (CASPs), including centralized exchanges.
Coinbase already supports MiCA-compliant stablecoins, such as Circle’s USD Coin (USDC) and the Euro-backed EURC. The platform plans to provide users with conversion options to these approved stablecoins in the coming months.
Also, the exchange has designated Ireland as its hub for MiCA compliance, allowing it to operate across the EU.
Coinbase has yet to respond to CryptoSlate’s request for additional commentary as of press time.
Tether impacted
This delisting could significantly affect major stablecoins like Tether’s USDT, the largest stablecoin by market cap. Tether CEO Paolo Ardoino recently warned that the strict cash reserve requirements could present systemic risks to banks and digital assets.
Tether has yet to respond to CryptoSlate’s request for comment as of press time.
Meanwhile, Coinbase’s delisting strategy mirrors actions taken by other exchanges like Binance and Bitstamp.
In June, Bitstamp delisted Tether’s Euro-pegged stablecoin EURT for not meeting MiCA requirements. The platform also stated it won’t list any tokens that fail to comply with MiCA’s Electronic Money Tokens (EMT) regulations.
Binance has taken a similar approach by limiting certain services in the region. These restrictions include barring the purchase and transfer of unauthorized stablecoins and limiting new borrowing options.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether
$1.00052
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Bitstamp
Bitstamp is a European-based cryptocurrency marketplace that allows people from all around the world to buy and sell cryptocurrencies.