Coinbase is preparing to delist stablecoins that do not meet the European Union’s Markets in Crypto-Assets Regulation (MiCA) requirements from its European platform by the end of December. This move is part of the exchange’s efforts to align with the new regulations, which aim to enforce stricter oversight of crypto-related businesses.<\/p>\n
The European Union’s MiCA<\/a> regulations are introducing enhanced compliance standards for cryptocurrency firms operating within the region. On October 4, Bloomberg reported that Coinbase will phase out stablecoins that are not compliant with these EU rules by the end of 2024. This development is set to coincide with the complete implementation of MiCA, which seeks to increase regulatory scrutiny over the digital asset industry.<\/p>\n In a statement issued on October 4, a representative from Coinbase reaffirmed the company’s dedication to regulatory adherence: “Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024.” As part of this compliance initiative, Coinbase will provide European Economic Area (EEA) users with conversion options to stablecoins that meet MiCA’s standards, such as Circle’s USD Coin (USDC), in the coming months. Circle has been one of the first stablecoin issuers to achieve compliance under MiCA regulations.<\/p>\n MiCA, which began regulating stablecoin issuers on June 30, 2024, mandates that all stablecoins accessible to users within the EEA must possess an e-money license issued by at least one EU member state. This requirement has a direct impact on major stablecoins, such as Tether’s USDT, which could be removed from Coinbase’s platform if the necessary authorization is not obtained.<\/p>\n Coinbase is not the only exchange making changes to comply with MiCA. Other cryptocurrency platforms<\/a>, including OKX, Bitstamp, and Uphold, have already made adjustments to limit the availability of noncompliant stablecoins like USDT. This trend reflects the broader industry’s push to align with the EU’s new regulatory framework.<\/p>\n Competition in the stablecoin sector is intensifying as firms scramble to adapt to the evolving regulatory landscape. Some companies, such as Robinhood and Revolut, are exploring the possibility of launching their own stablecoins to compete with dominant players like Tether and Circle. Meanwhile, Next Generation, a fintech firm based in France, and Decta, an electronic money institution headquartered in Ireland, recently announced plans to revive a euro-pegged stablecoin, EURT, on the Stellar blockchain<\/a>. They plan to leverage the regulatory clarity provided by MiCA to meet the growing demand for euro-backed digital currencies.<\/p>\n The increased demand for regulated digital currencies<\/a> in Europe has also benefited USDC. In July, shortly after the EU’s stablecoin regulations came into effect, trading volume for USDC jumped by 48%. This surge is seen as a response to the growing preference for regulatory-compliant digital assets.<\/p>\n As Coinbase introduces conversion options for EEA users, USDC could solidify its standing as the leading MiCA-compliant stablecoin in the region. This strategic move positions Coinbase to expand its influence in the European digital asset market, making USDC a preferred choice for users seeking regulated and stable digital currencies.<\/p>\n <\/p>\n More and more projects will be restricted\/forbidden in the EU. Especially AI projects and such which allow on chain storage. Glad that $ICP<\/a> has its GDPR compliant EU subnet 😉https:\/\/t.co\/y7jic2NJtT<\/a><\/p>\n — markus.icp ∞ (@Markus_B30) October 4, 2024<\/a><\/p><\/blockquote>\nSprint Towards Compliance Amid Regulatory Pressure<\/h2>\n
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