Coinbase Global Inc. has announced its plan to delist all non-compliant stablecoins from its European platforms by the end of December 2024. This decision comes in response to the European Union’s upcoming implementation of the Markets in Crypto-Assets (MiCA) regulations.
The new rules, designed to create a standardized regulatory framework for crypto assets across the EU, are set to take full effect by December 31, 2024.
Coinbase Announces Deadline for MiCA Stablecoin Compliance
Coinbase’s announcement specifies that the delisting will target stablecoins that fail to meet the new MiCA requirements. The MiCA regulation, which took effect on June 30, mandates stablecoin issuers to obtain e-money authorization within the EU. This regulatory move will enhance the oversight of crypto assets within the European Economic Area (EEA) ensuring consumer protection.
Additionally, the crypto exchange plans to provide an update on the transition in November, offering users options to convert their holdings to compliant stablecoins such as Circle’s USDC. This proactive compliance measure places Coinbase at the forefront of adherence to regulatory expectations in the cryptocurrency market.
Impact on Stablecoin Market and EEA Users
The impending regulations and Coinbase’s compliance strategy may significantly reshape the stablecoin landscape in Europe. Tether Holdings Ltd.’s USDT, the largest stablecoin issuer, may face challenges as it has not yet secured the necessary permissions to operate under the new EU framework. This regulatory scenario sets a precedent that could prompt other crypto exchanges to follow suit, aligning their operations with the MiCA guidelines.
Additionally, other major platforms like OKX, Bitstamp, and Uphold have already taken steps to limit the availability of non-compliant stablecoins like USDT to their European users. Such moves underline the growing trend of regulatory alignment within the crypto industry.
Despite increased stringent regulatory measures on the crypto landscape, the adoption of stablecoins like USDC continues to thrive. Most recently, MiCA-compliant Circle’s partnership with MHC Digital expanded USDC stablecoin to Australia and Asia Pacific.
In addition, Paul Grewal, the Chief Legal Officer at Coinbase, highlighted inconsistencies in how the U.S. Securities and Exchange Commission (SEC) handles legal arguments across different cryptocurrency cases. Grewal criticized the SEC for varying its stance on whether digital-asset transactions constitute securities transactions. This issue has created confusion and uncertainty within the crypto industry
The post Just-In: Coinbase To Remove All Non-Compliant Stablecoins appeared first on CoinGape.
