The cryptocurrency exchange Coinbase plans to remove unauthorized stablecoins from its European platform by the end of the year, adapting to the upcoming MiCA regulations.
Coinbase, a U.S.-based crypto exchange, intends to eliminate all non-compliant stablecoins from its European operations by the close of this year, in light of the European Union’s new crypto regulations, as reported by Bloomberg has reported.
The Markets in Crypto-Assets framework, which became effective in June for stablecoin issuers, mandates that companies possess e-money authorization in at least one member state of the EU. Additional regulatory guidelines for exchanges like Coinbase will come into force on December 31.
A Coinbase representative informed Bloomberg that the exchange aims to limit services related to non-compliant stablecoins, such as Tether’s (USDT), by December 30. Users will receive an update in November regarding options to convert their assets to alternatives like Circle’s USD Coin (USDC).
In early July, the French blockchain analytics company Kaiko noted in a research report that Circle has profited from the MiCA regulations, with its stablecoins showing considerable spikes in daily trading volumes following the implementation of the new rules.
Nevertheless, industry leaders have voiced worries over the regulations. Tether CEO Paolo Ardoino, for example, warned that stringent cash reserve requirements could introduce systemic risks to banks.
The trend of delisting is not confined to stablecoins; Kraken has recently declared it will cease trading and deposits of Monero (XMR) in the European Economic Area due to regulatory changes, following similar actions by Binance and OKX.
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