CDS Crypto News Coinbase Takes Action: Delisting Stablecoins Amid EU Rules
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Coinbase Takes Action: Delisting Stablecoins Amid EU Rules

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Coinbase Takes Action: Delisting Stablecoins Amid EU Rules

Coinbase Takes Action- Navigating MiCA: Coinbase’s Move on Stablecoin Compliance

Coinbase Takes ActionThe European Union’s new Markets in Crypto-Assets Regulation (MiCA) is reshaping the crypto landscape, and Coinbase is taking proactive steps to comply. As part of its commitment to regulatory adherence, the exchange announced on October 4 that it will delist stablecoins that fail to meet EU regulations by the end of 2024. This move comes as MiCA aims to impose stricter controls over the digital asset market.

Coinbase’s Commitment to Compliance

In a statement released on the same day, a Coinbase spokesperson emphasized the company’s dedication to regulatory compliance. They noted, Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024. As a result, users in the European Economic Area (EEA) will soon have conversion options to compliant stablecoins, including Circle’s USD Coin (USDC), which has already aligned with MiCA’s requirements.

MiCA’s Impact on Stablecoin Issuers

The MiCA regulations, which took effect on June 30, require all stablecoins available in the EEA to hold an e-money license from at least one EU member state. This regulatory framework puts pressure on major tokens like Tether’s USDt (USDT), which may be removed from the Coinbase platform unless it secures the necessary authorization. As the EU continues to enforce these regulations, exchanges like Coinbase, OKX, Bitstamp, and Uphold are already moving to restrict noncompliant stablecoins.

Competitive Landscape for Stablecoins

With the stablecoin market becoming increasingly competitive, companies like Robinhood and Revolut are considering launching their own stablecoins to rival Tether and Circle’s market share. Additionally, fintech firms such as Next Generation in France and Decta in Ireland have announced plans to introduce a euro-pegged stablecoin, EURT, on the Stellar blockchain, capitalizing on the regulatory clarity offered by MiCA.

As demand for regulated digital currencies grows, USDC has seen a significant rise in trading activity. Following the implementation of EU regulations, USDC’s trading volume surged by 48% in July. With Coinbase’s plans to facilitate conversions to USDC, the stablecoin is well-positioned to become a favored choice among users seeking compliant digital assets in the European market.

Coinbase Takes Action: Delisting Stablecoins Amid EU Rules

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