Coinbase Delists Unauthorized Stablecoins, Including Tether (USDT), Ahead of MiCA Compliance Deadline

Coinbase's decision to delist these stablecoins, including Tether's USDT, aims to ensure that the platform meets the strict regulatory standards

Coinbase is preparing to delist several stablecoins from its European platform by December 30 to comply with the Markets in Crypto Assets (MiCA) framework, which aims to regulate cryptocurrencies and stablecoins within the European Union (EU).

The move follows increasing regulatory scrutiny over stablecoins, with the European Central Bank (ECB) calling for stricter rules to protect users and ensure financial stability.

Coinbase’s decision is likely to impact several stablecoins, including Tether’s USDT, which is the largest stablecoin by market capitalization. Tether has not yet obtained an e-money license in the EU, which could lead to the delisting of USDT from Coinbase's European exchange.

Coinbase users in the European Economic Area (EEA) will be able to convert their holdings of unauthorized stablecoins to compliant alternatives. Further details on the conversion process are expected to be announced by Coinbase in November.

Meanwhile, Circle, the second-largest stablecoin issuer after Tether, is expected to remain a primary option for users transitioning to MiCA-compliant assets.

The MiCA framework, which came into effect in June for stablecoin issuers, aims to regulate the issuance, trading and oversight of crypto-assets within the EU.

Under the framework, stablecoin issuers must hold e-money authorization in at least one EU member state to operate within the bloc. These rules are designed to protect users and promote innovation within the crypto space.

For exchanges like Coinbase, the rules will apply from December 31, and the company has announced that it will restrict services related to non-compliant stablecoins by December 30.

The regulatory shifts are impacting stablecoins in various ways. In June, Bitstamp delisted Tether’s Euro-pegged stablecoin EURT for non-compliance, setting the stage for what could become an industry-wide adjustment.

Binance is also adapting its stablecoin offerings to ensure full compliance with the EU’s new rules, which are expected to shape the availability of stablecoins in the region.

The above is the detailed content of Coinbase Delists Unauthorized Stablecoins, Including Tether (USDT), Ahead of MiCA Compliance Deadline. For more information, please follow other related articles on the PHP Chinese website!