Crypto exchange Coinbase Global has announced plans to delist all stablecoins that lack proper authorization from its European Economic Area (EEA) platform by the end of 2024. The move could affect tokens such as Tether’s USDT, which have yet to obtain regulatory approval in the region.
The decision comes as the European Union (EU) prepares to enforce its new cryptocurrency regulations under the Markets in Crypto Assets (MiCA) framework.
Coinbase to Limit EEA Services on Non-Compliant Stablecoins
According to a Bloomberg report, the company intends to limit services for EEA users concerning stablecoins that do not comply with MiCA regulations by December 30, 2024, emphasizing their commitment to regulatory compliance.
Coinbase aims to release a detailed update next month, outlining user options to transition their holdings into MiCA-compliant stablecoins, such as Circle’s USDC.
Several other firms, including Robinhood Markets and Revolut, are considering issuing their stablecoins to rival Tether, which currently holds the largest share of the global stablecoin market but has yet to secure regulatory approval for its $120 billion USDT in Europe.
Other exchanges like OKX, Bitstamp, and Uphold have already taken steps to limit access to Tether’s stablecoins in the European market in anticipation of MiCA’s full implementation.
Circle Secures First EU Stablecoin License
Last year, the EU passed MiCA, establishing a comprehensive regulatory framework for the crypto industry. The legislation aims to strengthen investor protections and uphold the integrity of digital asset platforms.
The MiCA regulations for stablecoin issuers took effect on June 30, requiring these companies to obtain e-money authorization within at least one EU member state. The broader compliance rules for exchanges and other crypto-related businesses will be fully implemented by December 31.
In compliance with the Markets in Crypto-Assets (MiCA) regulations, Circle, the issuer of USD Coin (USDC), has acquired an Electronic Money Institution (EMI) license. This enables Circle to officially offer USDC and Euro Coin (EURC) to European customers, effective July 1, as reported by CoinTab.
With the license, granted by the French financial regulator, Circle can issue its stablecoins in the EU in compliance with MiCA’s regulatory requirements. Additionally, Circle is launching its Circle Mint platform in France, enabling businesses to mint and redeem their stablecoins.
The approval positions Circle to capture a larger market share across the 27 EU member states, encompassing a population of 450 million people.
Cynthia Ezirim | December 30, 2024
Mishael Nwani | December 30, 2024
