Coinbase to Delist Non-Compliant Stablecoins in Europe by Year-End Amid New Regulatory Changes
Coinbase, the prominent cryptocurrency exchange, announced it will remove all non-compliant stablecoins from its European platform by the end of this year, aligning with the European Union’s latest cryptocurrency regulations.
The Markets in Crypto-Assets framework, effective since June, mandates that stablecoin issuers obtain e-money authorization from at least one EU member state. Additional regulatory measures for exchanges, including Coinbase, will come into effect on December 31.
A representative from Coinbase confirmed that the exchange will cease services related to non-compliant stablecoins, such as Tether’s (USDT), by December 30. Users will receive an update in November detailing options to convert their assets to alternatives like Circle’s USD Coin (USDC).
In July, a report highlighted that Circle has seen a surge in trading volume for its stablecoins, attributed to the favorable regulatory environment fostered by MiCA.
However, there are concerns from industry leaders regarding these regulations. Tether’s CEO has warned that strict cash reserve requirements may create systemic risks for banks.
This trend of delisting is not isolated to stablecoins; Kraken has also announced a halt to trading Monero (XMR) in the European Economic Area due to regulatory changes, following similar actions by other exchanges.
