coinspress.com
Coinbase is making significant changes to its offerings as the European Union's Markets in Crypto-Assets Regulation (MiCA) comes into full effect.
The exchange will remove stablecoins that do not meet EU standards by the end of 2024. This decision reflects a growing commitment to adhere to the new regulatory environment.
On October 4, a Coinbase spokesperson indicated that users in the European Economic Area (EEA) will no longer have access to non-compliant stablecoins after December 30, 2024, but will be offered the option to convert to compliant alternatives like USD Coin (USDC). The MiCA regulation, which began enforcement on June 30, requires all stablecoin issuers in the EEA to obtain an e-money license from at least one EU country. This means popular stablecoins such as Tether’s USDT may be removed from the platform unless they secure the necessary approvals.
Coinbase is not alone in this effort; several other exchanges, including Bitstamp and OKX, are also limiting access to stablecoins that fail to comply with the new regulations. Meanwhile, fintech firms like Robinhood and Revolut are exploring the development of their own stablecoins to compete in the evolving market.
In a related move, French fintech Next Generation and Ireland-based Decta plan to reintroduce a euro-pegged stablecoin, EURT, using MiCA’s guidelines to attract interest in euro-backed digital currencies. Following the introduction of EU regulations, USDC has seen a spike in trading volume, increasing by 48% in July. Coinbase’s initiatives to facilitate the use of compliant stablecoins could solidify USDC’s status as a favored option among users seeking regulated digital assets.