Coinbase Europe Delists Major Stablecoins to Comply With MiCA

In a significant shift, Coinbase Europe has announced that it will be delisting several stablecoins from its platform. This move complies with the European Union’s new Markets in Crypto-Assets (MiCA) regulation. 

This decision, which affects prominent stablecoins like Tether’s USDT, has sent ripples through the crypto community. This signals the growing influence of EU regulations on the global crypto landscape.

Coinbase Takes a Stand on MiCA Regulatory Compliance

In a message to its European users, Coinbase stated that it is implementing restrictions for stablecoins that fail to meet the MiCA requirements. The new regulations aim to bring structure and security to the crypto market by enforcing strict rules on all crypto assets. 

Stablecoins, in particular, are subject to these stringent requirements. As a result, any stablecoin that is not compliant with these regulations will face restrictions. Starting December 13, users in Coinbase Europe and Coinbase Germany will no longer be able to trade or hold several popular stablecoins. 

These include Tether’s USDT, Paxos Standard’s PAX, PayPal USD (PYUSD), Gemini Dollar’s GUSD, GYEN, the Japanese YEN stablecoin by GMO-Z.com, and DAI, the stablecoin from Maker Protocol.

The platform has given its users the ability to sell, convert, or transfer these assets out of the exchange until the restriction date. 

What This Means for Coinbase Users

Coinbase has reassured its users that the delisting is temporary. The platform has made it clear that it will reassess the situation. Also, it could re-enable services for stablecoins that meet MiCA compliance in the future. 

However, for now, users of Coinbase Europe are left with limited options. This is because only USDC, a stablecoin co-created by Coinbase and Circle, and EURC, Euro Coin are MiCA-compliant and will remain available. Coinbase urges users to act quickly before the deadline to avoid losing access to these assets.

Tether Responds to the Regulatory Pressure

Tether, the issuer of USDT, has expressed concerns about Europe’s evolving regulations. However, it stressed that it remains committed to the European market. While it recognizes some benefits of the new MiCA regulations, Tether worries that they could create new risks. 

The company also hinted at a disagreement with exchanges that may be taking premature actions to comply with MiCA. The firm mentioned that it was possibly because they acted out of self-interest or misunderstanding the situation.

Meanwhile, Tether did not directly reference Coinbase in its statement. The timing of its statement suggested it might be reacting to Coinbase’s decision to delist USDT. This tension is amplified by the fact that USDC will continue to be supported on the platform.

Notably, Some European countries struggle to update their laws to match the new MiCA rules. Recently, many have requested a six-month grace period after the year-end deadline.

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