Coinbase plans to convert 14 stablecoins held by retail customers in the European Economic Area (EEA) to USDC or other supported assets on October 30. The cryptocurrency exchange cited non-co
Coinbase plans to convert 14 stablecoins held by retail customers in the European Economic Area (EEA) to USDC or other supported assets on October 30. The cryptocurrency exchange cited non-compliance with the European Union’s Markets in Crypto-Assets (MiCA) framework as the driving factor behind this move, according to a notice published in its help center.
The conversion will affect a range of stablecoins, including Tether’s USDT, PayPal’s PYUSD, World Liberty Financial’s USD1, Sky’s USDS and DAI, as well as Paxos’ PAX and gold-backed PAXG. Other impacted assets are GUSD, GYEN, BUST, UST, RAI, MUSD, and TGBP. Coinbase had previously restricted buying, selling, and conversion of these tokens for EEA users. Customers who wish to retain their holdings in these stablecoins must transfer them to an external wallet before October 30. Withdrawal remains the only available option for maintaining exposure to these assets within the affected region.
Any tokens still present in EEA retail Coinbase accounts on October 30 will be automatically swapped at the prevailing market rate. The converted amount will be credited in USDC if suitable, or otherwise in another cryptocurrency or currency that Coinbase supports. The company specified that this will be a one-time action and applies only to balances held as of that date.
Stablecoin Immediate Action for EEA Users USDT, PYUSD, USD1, USDS, DAI, PAX, PAXG, GUSD, GYEN, BUST, UST, RAI, MUSD, TGBP Withdraw before Oct. 30 or will be convertedThe notice, addressed to customers of Coinbase Luxembourg S.A. that operates under authorization from the Commission de Surveillance du Secteur Financier (CSSF), links these changes to MiCA’s stablecoin regulations. The communication emphasized that MiCA’s transitional period for stablecoin issuers ended on July 1, 2026, and was not extended. As a result, Coinbase cannot support tokens from issuers lacking MiCA authorization.
Coinbase also reminded users that transferring unsupported tokens to the exchange after the deadline would result in no credits, trades, or conversions. Although the exchange may attempt to return some assets via its unsupported crypto recovery process, this service does not cover every token or blockchain network and does not guarantee asset recovery. Coinbase further warned users that exchanging crypto assets could have tax implications in certain jurisdictions.
Earlier in December 2024, Coinbase Europe Limited and Coinbase Germany GmbH restricted six stablecoins—USDT, PAX, PYUSD, GUSD, GYEN, and DAI—for their retail customers. Clients were given the option to sell, convert to USDC or EURC, or withdraw their tokens. Since then, the list of restricted coins has grown, and leftover balances will be converted automatically after the latest deadline.
USDC, a stablecoin issued by Circle, remains compliant with MiCA regulations within the EEA. This month, the European Banking Authority designated USDC as MiCA’s first significant e-money token. The EU’s securities regulator, ESMA, also called on cryptocurrency platforms to phase out services related to stablecoins that do not meet MiCA requirements. Coinbase has not addressed this particular ESMA guidance in its customer notice.
For affected EEA customers, any action that needs to be taken must be completed before October 30, when Coinbase will execute the one-time conversion. Tokens sent to Coinbase after the deadline are not supported and may not be recoverable.
Mini dictionary: MiCA (Markets in Crypto-Assets) is a regulation introduced by the European Union to establish standardized requirements and safeguards for crypto-asset issuers and service providers within the EU. It aims to enhance investor protection, improve market integrity, and support innovation while ensuring a unified regulatory approach across member states.
Balances of unsupported stablecoins left in EEA retail Coinbase accounts on October 30 will be converted at the market rate, and the resulting funds will be credited, typically in USDC, or in another supported asset, according to Coinbase’s help-center notice.
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