Coinbase to Delist Non-Compliant Stablecoins in Europe by Year-End

Crypto Exchange Coinbase to Delist Unauthorized Stablecoins in Europe by Year-End

Coinbase, a leading U.S.-based cryptocurrency exchange, is set to remove all non-compliant stablecoins from its European platform by the end of this year. This move aligns with the European Union’s new crypto regulations under the Markets in Crypto-Assets (MiCA) framework.

MiCA Framework and Compliance

The MiCA framework, effective since June for stablecoin issuers, mandates companies to hold e-money authorization in at least one EU member state. Additional regulatory guidelines for exchanges like Coinbase will be enforced starting December 31.

A Coinbase spokesperson confirmed that the exchange plans to restrict services related to non-compliant stablecoins, including Tether’s USDT, by December 30. An update will be provided to users in November, detailing options to convert their holdings to alternatives such as Circle’s USD Coin (USDC).

Impact on Stablecoin Market

In early July, French blockchain analytics firm Kaiko noted that Circle has benefited from the MiCA regulations. Circle’s stablecoins have seen significant increases in daily trading volumes following the introduction of these new requirements.

Despite these benefits, industry leaders have voiced concerns about the new regulations. Tether CEO Paolo Ardoino warned that stringent cash reserve requirements could pose systemic risks to banks.

Broader Delisting Trends

The trend of delisting is not limited to stablecoins. Recently, Kraken announced it would halt trading and deposits of Monero (XMR) in the European Economic Area due to regulatory changes. This follows similar moves by Binance and OKX.

Final Thoughts

As the crypto industry continues to evolve, staying informed about regulatory changes and their implications is crucial for investors and traders. Coinbase’s proactive measures to comply with the MiCA framework underscore the importance of adhering to new regulations in the rapidly changing cryptocurrency landscape.

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