Originally published on: December 12, 2024
As European cryptocurrency regulations come closer to enforcement, major exchanges like Coinbase are gearing up to delist non-compliant stablecoins in the region. In an update on Thursday, Coinbase Europe, Coinbase Germany, and Coinbase Custody International announced their plans to remove Tether’s USDT and five other stablecoins from their platforms on December 13.
According to Coinbase, the decision to delist assets like USDT, PAX, PYUSD, GUSD, GYEN, and DAI is in compliance with Europe’s Markets in Crypto-Assets Regulation (MiCA). While this move may come as a surprise to some users, Coinbase reassured customers that they will continue to support stablecoins like USD Coin (USDC) and the euro-pegged EURC coin.
MiCA’s regulatory framework for crypto asset service providers is set to fully kick in on December 30. Since the phase one stablecoin regime came into effect on June 30, exchanges have been working to ensure compliance with the new rules. Coinbase had previously communicated its intentions to delist non-compliant stablecoins back in October and encouraged users to transition to MiCA-compliant assets.
With a significant share of USDT trading on its platform, Coinbase’s decision to delist the stablecoin could have a notable impact on the market. Tether’s USDT is currently the second most traded asset on Coinbase, following Bitcoin, and accounts for over 12% of all trades, with daily volumes exceeding $1 billion.
While Coinbase refrains from commenting on the specific volumes of USDT trading on affected platforms in Europe, Tether CEO Paolo Ardoino has expressed some reservations about MiCA regulations. Despite this, Tether remains committed to exploring technology-driven solutions to navigate the European market and comply with regulatory requirements.
In a recent move, Tether announced the suspension of its EURt stablecoin due to lack of community interest, focusing instead on supporting new projects that offer MiCA-compliant stablecoins. As the regulatory landscape evolves, both Coinbase and Tether are adapting their strategies to meet the changing requirements in the crypto space.
As exchanges like Coinbase take proactive measures to ensure compliance with MiCA, the future of stablecoins in Europe remains a topic of ongoing discussion and evolution. Stay tuned for more updates on how the crypto market adapts to regulatory changes and emerging technologies.
