U.S.-based cryptocurrency exchange Coinbase is set to remove all non-compliant stablecoins from its European platform by December. This move is part of its preparations to align with the European Union's new crypto-assets regulation (MiCA).

MiCA Compliance and the December Deadline

All stablecoin issuers in the EU have been required to meet MiCA's standards since June, which include holding e-money authorization in at least one EU member state. Exchanges must adhere to additional standards starting December 31. Coinbase has announced it will restrict services for non-compliant stablecoins by December 30.

Impact on Tether and Other Stablecoins

One of the key tokens impacted by this decision is Tether (USDT). Tether has not secured an e-money license in the EU, which could lead to its delisting from Coinbase's European platform. Paolo Ardoino, CEO of Tether, has expressed concerns over stringent cash reserve requirements. Meanwhile, alternative stablecoins like Circle's USDC and EURC remain unaffected, as Circle became the first global stablecoin issuer to receive an Electronic Money Institution license in the EU.

Preparing for Regulatory Shifts

Other major exchanges like Binance and Bitstamp have also begun restricting stablecoins that fail to meet MiCA requirements. In June, Bitstamp removed Tether's Euro-pegged stablecoin EURT for non-compliance, setting a precedent for the industry. Binance is adjusting its offerings to ensure compliance with the EU's new rules. Coinbase has designated Ireland as its hub for MiCA compliance.

These changes highlight the importance of adhering to new regulatory standards in the crypto industry. Coinbase and other exchanges are adapting their services to meet updated requirements, ensuring user safety and compliance.