Coinbase’s decision to delist these stablecoins, including Tether’s USDT, aims to ensure that the platform meets the strict regulatory standards set by the EU.
Users in the EEA will be able to convert their holdings of unauthorized stablecoins to compliant alternatives by December 30, with further details expected in November. Coinbase’s second-largest stablecoin issuer, Circle, remains a primary option for users transitioning to MiCA-compliant assets.
MiCA Compliance and the December Deadline
The MiCA framework, which took effect in June for stablecoin issuers, requires companies to hold e-money authorization in at least one EU member state to operate within the bloc. These rules are reportedly designed to protect users while promoting innovation within the crypto space.
Exchanges like Coinbase must follow additional guidelines starting December 31, and the company has announced it will restrict services related to non-compliant stablecoins by December 30.
Impact on Tether and Other Stablecoins
One of the most significant stablecoins affected by Coinbase’s decision is Tether (USDT), the largest stablecoin by market cap. Tether has yet to secure an e-money license in the EU, and this regulatory shortfall could force the delisting of USDT from Coinbase's European platform.
Paolo Ardoino, CEO of Tether, has expressed concerns about the impact of stringent cash reserve requirements on both banks and digital assets.
Preparing for Regulatory Shifts
In June, Bitstamp removed Tether’s Euro-pegged stablecoin EURT for non-compliance, setting the stage for what could become an industry-wide shift. Binance is similarly adjusting its stablecoin offerings to ensure full compliance with the EU’s new rules.
As MiCA regulations extend to crypto service providers starting December 31, Coinbase has already designated Ireland as its hub for MiCA compliance.