Coinbase to delist non-compliant stablecoins

Coinbase announced plans on Friday to delist stablecoins that are non-compliant with the European Union’s MiCA laws beginning at the end of this year. It has been suggested by Coinbase to stop supporting stablecoins that don’t adhere to the Markets in Crypto Assets (MiCA) rules set forth by the EU

According to Bloomberg, this comes after the EU tightened the regulatory framework around the digital asset market.

The report said, “As of December 31, guidance for cryptocurrency exchanges and other businesses operating in the bloc will take effect.”. Coinbase revealed that in the coming months, European Economic Area (EEA) users can convert their assets into stablecoins with regulatory approval, such as Circle’s USDC.

The company reiterated that it will comply with local regulations, and the delisting process will start on December 30. Coinbase’s action may limit stablecoin issuer Tether, whose USDT token is allegedly not yet compliant with MiCA laws. “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,” the company stated.

Several other exchanges like Bitstamp, Uphold, OKX, and Binance stopped supporting stablecoins like USDT for their European users to remain compliant. On June 30, the European Commission expanded the jurisdiction of MiCA to include stablecoin issuers, provided that they hold an e-money license from at least one EU member state. The objective is to improve supervision and guarantee adherence among stablecoin suppliers exposed in the area.