Coinbase is set to remove stablecoins that do not meet MiCA standards in Europe, aligning with the European Union's new regulations.
MiCA Compliance and the December Deadline
The MiCA framework, effective since June for stablecoin issuers, requires e-money authorization within EU member states. Exchanges like Coinbase must comply with these regulations by December 31, introducing restrictions on non-compliant stablecoins by December 30.
Impact on Tether and Other Stablecoins
Tether (USDT), the largest stablecoin by market cap, is significantly impacted by Coinbase's decision. Tether has not yet obtained an EU license, risking delisting from Coinbase's European platform. Meanwhile, Circle's stablecoins like USDC are safeguarded by an EMI license in the EU.
Preparing for Regulatory Shifts
Other major exchanges, such as Binance and Bitstamp, are restricting stablecoins that don't meet MiCA's requirements. Bitstamp removed EURT in June, and Binance is adjusting its offerings to comply with the EU's new rules. Coinbase has designated Ireland as its MiCA compliance hub.
The preparations by Coinbase and other major exchanges for compliance with the new European MiCA standards represent a significant step toward sustainable regulation of the cryptocurrency market.