Coinbase to Delist Non-Compliant Stablecoins by December 30, 2024, in Compliance with EU’s MiCA Framework

By December 30, 2024, Coinbase, a leading cryptocurrency exchange, will begin delisting non-compliant stablecoins as part of its efforts to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This decision is targeted at customers in the European Economic Area (EEA) and aims to safeguard European investors from fraud and risks.

MiCA, which includes a comprehensive crypto regulatory framework, promotes innovation and economic competitiveness while ensuring rigorous supervision and regulatory oversight of stablecoin issuers. One of the key requirements under MiCA is that stablecoin issuers must hold e-money authorization in at least one EU member state.

Coinbase’s move to delist non-compliant stablecoins is particularly significant given the exchange’s extensive customer base in the EEA. Coinbase has announced that it will provide an update to its EU customers in November, offering them the option of converting their non-compliant stablecoins to EU-friendly ones before the delisting.

USDT, issued by Tether, and USDC, issued by Circle, are among the stable coin options that may be affected by the decision, although they may not meet the rigorous criteria set out under MiCA. Circle has already complied with MiCA by obtaining e-money authorization in Ireland, which is likely to ensure that its stablecoins, such as USDC and EURC, are accessible to EU customers.

The delisting of non-compliant stable coins is a significant step towards the EU’s regulation of the cryptocurrency market. The EU is taking a proactive approach by restricting access to compliant stablecoins for EU investors, which can boost investor confidence in the cryptocurrency market.

For more insights and information on the EU’s regulatory framework and its impact on the cryptocurrency market, read our article on “Understanding the EU’s MiCA Framework and Its Impact on the Crypto Industry”.

In conclusion, Coinbase’s commitment to compliance and its willingness to collaborate with regulatory authorities demonstrate its commitment towards maintaining the integrity of the cryptocurrency market. As the deadline for submitting proposals approaches, it is crucial for cryptocurrency investors and stakeholders to remain informed about developments in the EU’s regulatory framework.

While the removal of non-compliant stablecoins from circulation may be a challenge in the short term, it is evident that the EU’s efforts to regulate the cryptocurrency market are motivated by fostering innovation and protecting investors. As time passes, regulatory compliance will become increasingly important in shaping the industry.