Coinbase has announced its intention to delist all unauthorized stablecoins from its platform by the end of the year in response to the new Markets in Crypto-Assets Regulation (MiCA) requirements set by the European Union.
MiCA Requirements for Stablecoins
MiCA regulation aims to enhance the integrity of the cryptocurrency market, ensure financial stability, and educate consumers about digital currency risks. Under MiCA, stablecoin issuers must obtain electronic money authorization in at least one EU member state, with compliance required by December 31, 2024.
Potential Impact on Tether’s USDT
Tether’s USDT, the largest stablecoin by market cap, may face delisting from Coinbase as it has not yet secured the necessary authorization in Europe. This potential delisting could impact USDT’s market price given Coinbase's significant user base.
Coinbase's Stablecoin Conversion Plans
The exchange plans to provide users with options for converting stablecoins and will update its plans in November. Other exchanges, like Bitstamp and OKX, have already restricted access to USDT in anticipation of the new regulations.
The new MiCA regulatory requirements from the EU are driving changes in the stablecoin market, including actions being taken by Coinbase and other crypto exchanges.
