MiCA rules require stablecoin issuers to obtain e-money authorization, so Coinbase will delist stablecoins that have not been authorized by December 30.
The much-awaited Market in Crypto Assets (MiCA) regulations will go into effect by the year-end across the European Union. Crypto exchange Coinbase announced it would delist all unauthorized stablecoins by December this year, which could be a significant blow to top players like USDT-issuer Tether.
Earlier this year, on June 30, the regulation of stablecoins issuers like Tether came into effect, making it mandatory for them to hold e-money authorization in at least one of the member states. The MiCA guidance for all the crypto exchanges and companies operating within the EU bloc will kick in by the year-end from December 31. In a statement to Bloomberg on Friday, a Coinbase spokesperson said:
“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”.
Starting in November, crypto exchange Coinbase will provide options to its EU users, such as converting their stablecoins to other EU-compliant versions, such as Circle’s USD Coin (USDC).
Several companies, including Robinhood Markets Inc. and Revolut Ltd., are exploring the possibility of launching their stablecoins, aiming to compete with Tether, the world’s largest stablecoin issuer. Tether, which manages US$120 billion in USDT, has yet to receive approval to operate in Europe.
Meanwhile, exchanges such as OKX, Bitstamp, and Uphold have already taken steps to limit access to Tether’s stablecoins in Europe as the Markets in Crypto-Assets (MiCA) regulations are near full implementation.
Coinbase, Binance Prepare for MiCA Rules
Other crypto exchanges like Binance have already started preparing to tune up with the MiCA rules to kick in by the year’s end. In August, the crypto exchange Binance announced the MiCA-regulated Euro-backed stablecoin Eurite (EURI) listing.
The exchange has also launched a zero-fee trading promotion for Eurite stablecoin trading pairs to celebrate the listing of EURI. This initiative aims to increase user engagement and enhance platform liquidity.
Last month, the Central Bank of Ireland also started preparations showing its commitment to the upcoming MiCA regulations. Derville Rowland, Deputy Governor of the Central Bank of Ireland, highlighted blockchain technology as one of the most significant innovations in recent financial services history. She emphasized its positive impact across various sectors, citing examples such as investment product tokenization, improved post-trade infrastructure, and increased interoperability.