Coinbase to delist non-compliant stablecoins for EU clients over MiCA rules

Coinbase is preparing to delist unauthorized stablecoins from its European platform by the end of the year, in compliance with upcoming MiCA regulations.

The U.S.-based cryptocurrency exchange will remove all non-compliant stablecoins from its European operations as part of its effort to adhere to the European Union’s new crypto regulations, according to a report by Bloomberg. The Markets in Crypto-Assets (MiCA) framework, which took effect in June for stablecoin issuers, mandates that companies must obtain e-money authorization in at least one EU member state. Additional regulatory guidelines for exchanges like Coinbase will come into effect on December 31.

A Coinbase spokesperson informed Bloomberg that the exchange intends to restrict services related to non-compliant stablecoins, including Tether (USDT), by December 30. Users will receive an update in November outlining options for converting their holdings to compliant alternatives such as Circle’s USD Coin (USDC).

In early July, French blockchain analytics firm Kaiko noted that Circle has seen a boost from the MiCA regulations, with its stablecoins experiencing a significant rise in daily trading volumes following the new requirements.

However, industry leaders have raised concerns about the implications of these regulations. Tether CEO Paolo Ardoino warned that stringent cash reserve requirements could create systemic risks for banks.

The trend of delisting is not confined to stablecoins; for instance, Kraken recently announced it would stop trading and deposits of Monero (XMR) in the European Economic Area due to regulatory changes, following similar actions by Binance and OKX.