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Starting from December 13, 2024, Coinbase will apply limitations to stablecoins like USDT that do not meet the MiCA requirements for European users. The restrictions exclude USDC, confirmed as compliant with the regulation.
Let’s see all the details in this article.
Summary
Coinbase complies with MiCA regulations: USDC remains fully operational, problems for USDT
Coinbase, one of the leading cryptocurrency exchange platforms globally, has announced that starting from December 13, 2024, it will adopt new restrictions for certain stablecoins intended for users in the European Union.
This decision was made to align with the regulations of the Markets in Crypto-Assets (MiCA), the European regulation aimed at governing the sector of cryptocurrencies and stablecoins.
According to what was stated by the company, stablecoins that do not meet the requirements set by MiCA will no longer be supported for certain services within the platform.
Among the currencies involved are USDT (Tether), PAX (Pax Dollar), PYUSD (PayPal USD), GUSD (Gemini Dollar), GYEN, and DAI.
European users will no longer be able to take advantage of specific features for these stablecoins, although general access to the digital wallet will remain guaranteed.
A significant aspect of this update is the exclusion of USDC (USD Coin) from the restrictions.
Coinbase has indeed confirmed that USDC, stablecoin issued by Circle, fully meets the requirements set by MiCA and will continue to be fully operational for EU users.
This choice could strengthen the position of USDC as one of the preferred digital assets for payments and transactions within the European community.
The impact of MiCA regulations
The MiCA regulation represents a crucial turning point for the European market of criptovalute.
With the aim of ensuring greater transparency, security, and protection for investors, MiCA imposes precise rules for stablecoin issuers, requiring reserve requirements, regular audits, and stability guarantees.
Coinbase, like other platforms in the sector, finds itself having to adapt its operations to avoid sanctions and continue operating in the European market.
For users, these restrictions could represent a significant change in the use of stablecoins. USDT, for example, is historically one of the most used stablecoins for trading and transfers.
However, its exclusion from some Coinbase services could push users to migrate towards compliant alternatives like USDC.
The strategy of Coinbase
The announcement by Coinbase reflects a broader strategy to consolidate its position in the European market, demonstrating full compliance with local regulations.
In recent years, the company has worked to strengthen its image as a reliable and regulated platform, an approach that could prove to be successful in an increasingly regulated sector.
However, the decision might not be welcomed by all users. Some might perceive it as an obstacle to the freedom of choice in the bull and bear cryptocurrency market.
On the other hand, Coinbase argues that these measures are necessary to ensure the continuity of services and protect customers from potential regulatory risks.