Crypto exchange Coinbase will delist stablecoins that fail to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation for customers in the European Economic Area (EEA) by December 30.
This move aligns with the EU’s effort to introduce tighter controls on crypto assets, requiring stablecoin issuers to obtain e-money authorization in at least one member state.
The new MiCA regulation, expected to take full effect in by January 2025, is part of a broader digital finance package aimed at standardizing the crypto landscape across the EU. It covers various aspects, including the issuance, offering, and trading of crypto assets.
MiCA divides crypto assets into categories such as electronic money tokens (EMTs) and asset-referenced tokens (ARTs), impacting fiat-backed stablecoins the most. The regulation has been hailed as one of the most comprehensive in the world.
A Coinbase spokesperson told Decrypt that the exchange will provide details about a transition plan in November to help its European customers switch to compliant stablecoins, including USDC and EURC.
This follows Circle’s recent move to secure an EU stablecoin license, becoming the first global stablecoin issuer to comply with MiCA.
“We regularly review the assets we make available to customers on our platform to ensure they adhere to applicable regulations. In November, we will share details regarding the transition plan to assist our EEA customers. This will include options for switching to stablecoins that have achieved compliance under MiCA, such as USDC and EURC,” the spokesperson said.
MiCA imposes stricter requirements on stablecoin issuers, who must maintain sufficient reserves to ensure the stability of their tokens. This part of the regulation directly affects platforms like Coinbase, as they are now required to delist stablecoins that fail to comply with these standards.
Edited by Andrew Hayward
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Source: https://decrypt.co/284674/coinbase-delist-stablecoins-europe-mica
