Coinbase, one of the largest cryptocurrency exchanges, has announced its decision to de-list unauthorized stablecoins across the European Union by 30 December 2024 to comply with the EU’s Markets in Crypto Assets (MiCA) regulations. These rules require stablecoin issuers to hold an e-money license in at least one of the 27 EU member states to continue operations within the region.
According to a recent report by Camomile Shumba for CoinDesk, Coinbase emphasized its commitment to regulatory compliance in a statement sent to CoinDesk. It plans to restrict access to stablecoins that do not meet MiCA’s criteria for users within the European Economic Area (EEA) by the end of the year. The exchange also confirmed that it will offer affected users options to switch to authorized stablecoins, such as Circle’s USDC and EURC, which are fully compliant with MiCA requirements.
The MiCA regulations for stablecoins took effect on 30 June 2024, and they have prompted companies to secure necessary licenses to continue providing services within the EU. Circle, the second-largest stablecoin issuer, was the first to secure an Electronic Money Institution license in the region in July. In contrast, Tether, the largest issuer of stablecoins globally, has yet to secure a license. Tether commended the EU’s regulatory efforts but pointed out that the MiCA framework introduces operational complexities for stablecoins, potentially impacting both local banking infrastructure and stablecoins themselves.
To address these challenges, Tether has announced plans to develop a technology-based solution tailored specifically for the European market. The details of this solution have not yet been revealed, but will aim to streamline stablecoin operations under the new regulatory landscape. Coinbase will disclose further information regarding its de-listing plans in November.
Featured Image via Coinbase
