Under MiCA, Coinbase will delist non-compliant stablecoins in the EU by December 30, 2024. MiCA requires stablecoin issuers to have e-money authorization in the EU. Exchanges like OKX, Bitstamp, and Uphold restricted Tether access before MiCA went into full effect.
Coinbase announces deadline for MiCA stablecoin compatibility
Coinbase’s announcement states that the delisting will target stablecoins that fail to meet the new MiCA requirements. cryptokoin.comAs you follow from , the MiCA regulation came into force on June 30. Thus, it made it mandatory for stablecoin issuers to obtain e-money authorization within the EU. This regulatory move will increase oversight of crypto assets within the European Economic Area (EEA). Additionally, it will ensure consumer protection in the crypto space.
In addition, Coinbase will provide an update on the transition in November. In this context, it plans to offer users options to convert their assets into compatible stablecoins such as Circle’s USDC. This proactive compliance measure places Coinbase at the forefront of adherence to regulatory expectations in the cryptocurrency market.
Stablecoin market and impact on EEA users
Upcoming regulations and Coinbase’s compliance strategy will significantly reshape the stablecoin landscape in Europe. Tether Holdings Ltd’s USDT is currently the largest stablecoin. However, Tether has not yet received the necessary permits to operate under the new EU framework. Therefore, it is possible that he may encounter difficulties. This regulatory scenario sets a precedent that could encourage Coinbase and other crypto exchanges to also align with MiCA guidelines.
Additionally, other major platforms such as OKX, Bitstamp, and Uphold have already taken steps to limit the availability of non-compliant stablecoins such as USDT to their European users. Such moves underscore the trend of increasing regulatory compliance in the crypto industry. Despite increasingly stringent regulatory measures in the crypto world, the adoption of stablecoins such as USDC continues to evolve. Finally, MiCA-compliant Circle’s partnership with MHC Digital has expanded the USDC stablecoin to Australia and Asia Pacific.
Coinbase Chief Legal Officer criticizes SEC
Additionally, Coinbase’s Chief Legal Officer Paul Grewal highlighted inconsistencies in the way the U.S. Securities and Exchange Commission (SEC) handles legal arguments in different cryptocurrency cases. Grewal criticized the SEC for changing its stance on whether digital asset transactions constitute securities transactions. This issue has created confusion and uncertainty in the crypto industry
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