Coinbase Global Inc. announced that it will delist all unauthorized stablecoins from its crypto exchange in the European Economic Area (EEA) by the end of 2024. This decision comes as the European Union (EU) prepares to fully enforce its Markets in Crypto-Assets (MiCA) regulation, a comprehensive framework designed to oversee the crypto industry.
MiCA, which aims to bring greater regulatory oversight to the crypto space, already imposed specific requirements on stablecoin issuers starting June 30, 2024. Issuers must now hold e-money authorization in at least one EU member state to comply with the new rules. For other entities, such as crypto exchanges, the complete implementation of the MiCA framework will take effect on December 31, 2024, according to Bloomberg.
Coinbase, which operates one of the largest crypto exchanges in the world, emphasized that it would enforce these compliance standards. A spokesperson for the company stated, “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.”
This move is expected to impact a range of stablecoins, including Tether Holdings Ltd.’s USDT, the world’s largest stablecoin by market capitalization. Currently, Tether has not obtained the necessary authorization to offer its $120 billion USDT token in the European market. Other exchanges, such as OKX, Bitstamp, and Uphold, have already started to restrict access to Tether’s stablecoin in anticipation of the MiCA regulation coming into full effect.
In response to the regulatory changes, Coinbase plans to release a detailed update next month, offering users options to convert non-compliant stablecoins to EU-authorized alternatives. Circle’s USDC, for example, is expected to remain available, as it has taken steps to align with the new regulatory standards in Europe.
The European Union’s MiCA regulation represents a significant shift for stablecoin issuers and crypto exchanges alike, introducing a harmonized legal framework across the bloc. As firms such as Robinhood Markets Inc. and Revolut Ltd. explore launching their own stablecoins, competition in this space is expected to intensify, particularly as issuers work to meet compliance obligations.
