Coinbase has announced plans to delist all stablecoins that do not comply with new European regulations by the end of 2024, in response to the strict requirements of the MiCA regulations. This decision will notably affect Tether's USDT, the most capitalized stablecoin in the crypto market.
Coinbase prepares to delist non-MiCA-compliant stablecoins by end of 2024
Coinbase, one of the largest cryptocurrency exchanges in the world, announced that it would remove from its platform all stablecoins that do not comply with new European regulations by December 30, 2024.
A decision that arises from the progressive application of the regulations Markets in Crypto-Assets (MiCA) in the European Economic Area, which imposes strict conditions on stablecoin issuers wishing to operate in the European market.
“ Given our commitment to compliance, we intend to restrict the provision of services to users in the EEA with respect to stablecoins that do not meet the MiCA requirements said a Coinbase spokesperson.
🪙 Understand everything about stablecoins and their singularities with our explanatory article
Adopted to standardize and secure the digital assets market, the MiCA regulation partially entered into force last June and will be fully applied by January 2025.
Indeed, since June 30, 2024, stablecoin issuers must hold an electronic money license in a member country of the European Union for their products to be authorized for sale. This regulation directly affects major stablecoins like Tether's USDT, the world's largest stablecoin issuer, which has not yet obtained this authorization, and which is unlikely to comply any time soon.
Cryptocurrency exchange Coinbase, which hosts one of the largest daily cryptocurrency trading volumes, will offer conversion solutions to enable its European customers to migrate towards compliant stablecoins like USDC and EURC. The latter are both issued by Circle, the American giant which obtained its electronic money license in the EU at the same time as the partial application of MiCA.
Coinbase: register on the most famous crypto exchange in the world
A repositioning that could redefine the stablecoin market in Europe
Coinbase is not the only exchange preparing for the new MiCA requirements. Cryptocurrency exchanges like OKX, Bitstamp and Uphold have already restricted access to non-compliant stablecoins in anticipation of full implementation of the legislation.
As the European Union positions itself to become one of the best regulated cryptocurrency markets in the world, this measure could benefit stablecoins like USDC, which has been gaining popularity since MiCA came into force. USDC trading volume increased by 48% last Julyas European investors favor assets that comply with the new regulations.
This dynamic also opens the door to new players. Companies like Robinhood and Revolut are already considering launching their own stablecoins to capitalize on the growing demand for compliant and accessible digital products.
At the same time, local initiatives such as Next Generation’s EURT stablecoinbacked by the euro, are developing to meet this increasingly pressing demand for regulated cryptocurrencies. The EURCV, launched by Société Générale-Forge, is also a convincing example.
💶 Find our selection of the main stablecoins following the rate of the euro
With these changes, Coinbase hopes to not only align with MiCA, but also strengthen its position as a reference platform for European investors seeking to navigate a rapidly changing crypto market. A position that had benefited Circle and its flagship stablecoin, USDC.
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Source: Bloomberg
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