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- Coinbase will delist all non-compliant stablecoins in the EEA by December 30, 2024, to meet new EU regulations.
- Users in the EEA can convert non-compliant stablecoins to MiCA-approved alternatives like USDC before December 2024.
Stablecoins that fall short of the European Union’s new Markets in Crypto-Assets (MiCA) rule will be delisted by the end of 2024, according to the Coinbase announcement.
The action especially relates to the European Economic Area (EEA) and marks a major step towards guaranteeing adherence to the new rule controlling digital assets throughout the area. For stablecoin issuers, the MiCA control will take effect in June 2024; any stablecoin functioning in Europe must obtain an e-money license in an EU member state.
#Coinbase plans to delist unauthorized stablecoins, including Tether's $USDT by December 30.
Coinbase wants to remove unauthorized stablecoins from its European Economic Area (EEA) platform by December 30, 2024, in compliance with the EU's new #MiCA regulations. MiCA requires… pic.twitter.com/d6JHfvgKad
— Satoshi Talks (@Satoshi_Talks) October 4, 2024
Coinbase Offers USDC Conversion for EEA Users Amid MiCA Compliance
For several well-known stablecoins, notably Tether (USDT), which has not yet been approved to run in Europe, the action will have significant effects.
Coinbase will provide its EEA consumers the choice to convert their non-compliant stablecoins to MiCA-compliant substitutes, such Circle’s USD Coin (USDC), which already satisfies the legal standards as part of the move.
Further information will be given to users in November 2024 to guarantee a seamless change before the December 30, 2024 deadline.
Coinbase’s decision fits in with the larger effort of other cryptocurrency exchanges to get ready for the MiCA control. Other exchanges, such as OKEx and Bitstamp, have already limited access to stablecoins, including USDT, that do not satisfy the new rules.
MiCA Tightens Control Over European Crypto Exchanges and Stablecoins
These actions are being done to guarantee complete compliance before later this year the MiCA regulations take effect. The regulations not only apply to stablecoin issuers but also include all crypto exchanges running in Europe; therefore, they need to be more strict in making sure the digital assets they deal with follow the new legal criteria.
Mostly to protect consumers and guarantee financial stability, MiCA is a component of European Union initiatives to boost supervision over the expanding digital asset industry.
While several stablecoins, including the well-known USDT, will be significantly impacted by the developments, USDC-compliant substitutes are expected to progressively take front stage in the local market.
Coinbase has also acted to match its activities with the laws. Under MiCA, Binance had earlier introduced a new stablecoin named Eurite (EURI), which is controlled in August 2024.
This kind of movement reveals how crypto exchanges are adjusting to ever stricter regulatory regulations, and Coinbase seems to be eager to guarantee its compliance in the European market.
Previously, CNF reported that Coinbase had revealed two additional tokens—ionet (IO) and Degen (DEGEN)—on its listing road map. Degen has profited from the memecoin phenomenon, which is still fast expanding even in the face of a more general market slowdown.
Originally offered as a prize token for the Farcaster community, its link with the shared social network has drawn a lot of attention.
