Coinbase will delist Tether’s USDT and five other stablecoins from its European platforms beginning December 13. This action is in response to the European Union’s Markets in Crypto-Assets Regulation (MiCA), which imposes stringent compliance requirements on crypto-asset service providers operating in the European Economic Area (EEA).
The affected stablecoins are USDT, PAX, PYUSD, GUSD, GYEN, and DAI. Coinbase announced that it will continue to support USD Coin (USDC) and the euro-backed EURC stablecoin, both of which meet MiCA regulations.
On June 30, MiCA began its initial phase, focusing on stablecoins, and on December 30, it will implement its entire framework for crypto-asset providers. Coinbase warned users about probable delistings in October, advising them to move their holdings to compliant assets such as USDC.
As the world’s third-largest cryptocurrency exchange, Coinbase handles huge USDT trading volumes, accounting for more than 12% of total transactions. Despite the delisting, the platform has informed users that it will consider re-enabling services for stablecoins that meet MiCA rules in the future.
Tether’s compliance with MiCA has come under scrutiny. While the European Securities and Markets Authority has yet to deliver a definitive verdict on USDT’s status, Tether has stated its willingness to adapt to the changing legal landscape.
Paolo Ardoino, Tether’s CEO, chastised several exchanges for making premature moves to delist assets, highlighting Tether’s confidence in managing the new laws. He reaffirmed the company’s commitment to promoting financial inclusion and innovation, especially in areas with limited access to traditional financial institutions.
This legal reform may have an influence on the liquidity of the European crypto market, as USDT is one of the world’s most extensively utilized stablecoins. However, it creates chances for conforming alternatives like USDC to increase their presence in the region.
Coinbase’s preemptive steps emphasize the growing importance of complying with legal frameworks as the cryptocurrency business expands in Europe and elsewhere.
