Cryptocurrency exchange Coinbase has announced it will delist stablecoins that fail to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024. The move is aimed at ensuring the exchange aligns with MiCA’s new regulatory framework, which imposes stricter requirements on stablecoin issuers and crypto platforms operating in the European Economic Area (EEA).
On October 4, a Coinbase spokesperson confirmed that the exchange will limit services related to noncompliant stablecoins and offer EEA users the option to convert their holdings to MiCA-approved alternatives, such as Circle’s USD Coin (USDC). Circle is one of the first stablecoin issuers to have met MiCA’s stringent criteria.
The change is set to take effect by December 30, 2024. Coinbase’s decision comes as MiCA regulations continue to tighten across the EEA. MiCA began its regulatory enforcement for stablecoin issuers on June 30, 2024, and all stablecoins must secure an e-money license from at least one EU member state to remain compliant.
The new policy will impact Coinbase users throughout the EEA, including EU countries and associated states like Norway, Iceland, and Liechtenstein. As the deadline approaches, Coinbase’s compliance measures reflect the EU’s drive to bring more transparency and stability to the regional crypto market.
MiCA was established to create a comprehensive legal framework for digital assets in the EU, particularly targeting stablecoins to ensure financial stability and consumer protection. Stablecoins are now required to hold proper licensing and sufficient reserve backing. The regulation impacts major tokens like Tether’s USDT, which might be forced off Coinbase’s platform if it does not meet MiCA standards.
To accommodate the changes, Coinbase plans to offer conversion options for users to switch to compliant stablecoins like USDC, which saw a 48% rise in trading volume in July following the introduction of MiCA’s rules. Other exchanges, including OKX and Bitstamp, have already delisted noncompliant stablecoins, preparing for full MiCA enforcement. Meanwhile, some companies like Robinhood and Revolut are considering launching their own compliant stablecoins to capitalize on the evolving market.
Coinbase’s move to adhere to MiCA regulations underscores the increasing influence of regulatory oversight on the European crypto landscape.
