Coinbase to delist USDT under MiCA
13.12.2024
Regulation of Cryptoasset Markets in the European Union (MiCA) tightens control over the activities of cryptocurrency companies. In light of this, cryptocurrency exchange Coinbase has made adjustments to its operations, confirming compliance with legal requirements.
"Considering our commitment to regulatory compliance, we will limit the provision of services to users in the European Economic Area (EEA) regarding stablecoins that do not meet MiCA requirements by December 30, 2024," a Coinbase representative stated.
The company also announced that EEA users will be offered options for converting to stablecoins that comply with regulatory standards, such as USDC, in the coming months. It is known that Circle, the issuer of USDC, was one of the first to adapt its assets to MiCA requirements.Impact of MiCA on Stablecoins
As of June 30, MiCA requires all stablecoins offered in the EEA to have an electronic money issuance license in at least one EU member state. This regulation threatens popular tokens such as USDT, which will be removed from the Coinbase platform if it fails to obtain the necessary authorization.
European cryptocurrency exchanges are already preparing to delist assets that do not meet regulatory standards. Coinbase Europe, Coinbase Germany, and Coinbase Custody International have announced the delisting of USDT, along with five other stablecoins — PAX, PYUSD, GUSD, GYEN, and DAI — starting December 13.
"Based on the available information, we expect restrictions on servicing assets subject to MiCA limitations," Coinbase stated.
Despite this, the platform will continue to support USDC and the euro-pegged stablecoin EURC, jointly issued with Circle. "We regularly review assets on our platform to ensure regulatory compliance. In the future, we will assess the possibility of re-adding stablecoins that achieve MiCA compliance," Coinbase added.
"Considering our commitment to regulatory compliance, we will limit the provision of services to users in the European Economic Area (EEA) regarding stablecoins that do not meet MiCA requirements by December 30, 2024," a Coinbase representative stated.
The company also announced that EEA users will be offered options for converting to stablecoins that comply with regulatory standards, such as USDC, in the coming months. It is known that Circle, the issuer of USDC, was one of the first to adapt its assets to MiCA requirements.Impact of MiCA on Stablecoins
As of June 30, MiCA requires all stablecoins offered in the EEA to have an electronic money issuance license in at least one EU member state. This regulation threatens popular tokens such as USDT, which will be removed from the Coinbase platform if it fails to obtain the necessary authorization.
European cryptocurrency exchanges are already preparing to delist assets that do not meet regulatory standards. Coinbase Europe, Coinbase Germany, and Coinbase Custody International have announced the delisting of USDT, along with five other stablecoins — PAX, PYUSD, GUSD, GYEN, and DAI — starting December 13.
"Based on the available information, we expect restrictions on servicing assets subject to MiCA limitations," Coinbase stated.
Despite this, the platform will continue to support USDC and the euro-pegged stablecoin EURC, jointly issued with Circle. "We regularly review assets on our platform to ensure regulatory compliance. In the future, we will assess the possibility of re-adding stablecoins that achieve MiCA compliance," Coinbase added.