Coinbase Global Inc. announced plans to delist all unauthorized stablecoins from its crypto exchange in the European Economic Area (EEA) by the end of 2024, in anticipation of the European Union’s new regulatory framework. This move could significantly impact major tokens such as Tether’s USDT.
The EU is set to fully implement the Markets in Crypto-Assets (MiCA) regulation by December 31, 2024.
MiCA’s guidelines for stablecoin issuers took effect on June 30, mandating that issuers obtain e-money authorization in at least one EU member state. Further regulatory guidance for exchanges and other firms will come into force by year-end.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” a Coinbase spokesperson said on Friday. The exchange plans to release further details in November, including options for users to convert their stablecoins to EU-compliant alternatives like Circle’s USDC.
This decision comes amid increasing pressure on stablecoin issuers as exchanges across the region, including OKX, Bitstamp, and Uphold, have already begun limiting access to Tether’s USDT ahead of MiCA’s full implementation.
While Tether, the world’s largest stablecoin issuer, has not yet secured the necessary permissions to offer its $120 billion USDT in Europe, competitors like Robinhood Markets Inc. and Revolut Ltd. are exploring the launch of their own stablecoins to challenge Tether’s dominance.
