Coinbase, a popular crypto exchange, plans to delist all stablecoins that don’t comply with new European Union regulations by the end of 2024. This marks a significant move for the crypto exchange as the region prepares to fully enforce the Markets in Crypto-Assets (MiCA) framework. Moreover, stablecoins like Tether (USDT) will face the heat due to the crypto exchange’s latest announcement.
Coinbase Announces Major Stablecoin Delisting Initiative in Europe
The Markets in Crypto-Assets Regulation (MiCA) regulations, aimed at tightening control over the crypto sector, are set to take full effect by year-end. Stablecoin issuers are now required to obtain e-money authorization from at least one member state, with this requirement already in place as of June 30, 2024. Meanwhile, the regulations for crypto exchanges, including Coinbase, will become mandatory by December 31.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” a Coinbase spokesperson stated on Friday, according to a Bloomberg report.
The exchange will soon offer an update on its plans, outlining options for users to convert their holdings into EU-compliant stablecoins, such as Circle’s USD Coin (USDC). Earlier this year, Circle became the first stablecoin issuer to be MiCA-compliant. Conversely, the impending delisting is expected to affect major tokens like Tether’s USDT, the world’s most dominant stablecoin.
Tether to Face the Heat?
Tether Holdings Ltd. has not yet secured the necessary permissions to continue offering its $120 billion USDT within Europe. This has raised questions about the future availability of the asset across the continent. Tether representatives have yet to comment on the situation.
Moreover, other popular crypto exchanges are also moving in response to the regulatory shift. OKX, Bitstamp, and Uphold have already limited access to Tether’s stablecoins in Europe ahead of the MiCA rules coming into full force.
The new framework is designed to provide clearer oversight of the crypto industry, with particular focus on stablecoins. Thus, these issuers will need to ensure compliance to operate in the European market.
In an attempt to fill the gap left by the potential departure of Tether, several companies, including Robinhood and Revolut, are exploring the possibility of launching their own stablecoins. In addition, Ripple is also building its RLUSD stablecoin.
Also Read: Ripple Mints 10M RLUSD: Major Step for Stablecoin Ecosystem