Coinbase to Delist Unauthorized Stablecoins in EU by December

Policy
  • Crypto exchange Coinbase plans to de-list any unauthorized stablecoins in the European Union by December 30.
  • Crypto companies are racing to comply with the European Union's Markets in Crypto Assets (MiCA) rules, which require firms to be authorized in at least one EU country.

Crypto exchange Coinbase (COIN) plans to de-list any unauthorized stablecoins in the European Union by December to comply with the EU's Markets in Crypto Assets rules (MiCA).

"Given our commitment to compliance, we intend to restrict the provision of services to EEA [European Economic Area] users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024," Coinbase said in a statement shared with CoinDesk on Friday.

Coinbase, the second biggest exchange, after Bybit, according to CoinGecko data, has been racing alongside other companies to become compliant with the European Union's MiCA rules which require firms to be authorized in at least one EU country. Rules for stablecoins came into force on June 30, which require stablecoin issuers to have an e-money license in an EU member state to be able to operate in the bloc of 27 nations.

Not all stablecoins have managed to get the necessary licenses in the EU. In July Circle became the first global stablecoin issuer to secure an Electronic Money Institution license in the region and is the second-largest issuer of stablecoins. Tether, which is the largest issuer of stablecoins, has not managed to snag an e-money license in the EU.

Tether didn't immediately respond to request for comments.

Coinbase plans to share further details of its plan in November, and will provide options for affected European Economic areas customers to switch to stablecoins issued by appropriately authorized issuers, such as Circles' USDC and EURC, it said in the statement.

Bloomberg was first to report the news about Coinbase's move.

Read more: EU's Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time

Related news