- The EU’s MiCA was introduced in June but does not come into effect until December.
- Coinbase will provide EU customers with an update on how to convert their stablecoins to EU-compatible stablecoins in November.
- Circle is the first stablecoin issuer to receive a digital currency license under MiCA regulations.
Cryptocurrency exchange Coinbase plans to delist stablecoins that do not meet the EU’s Market for Cryptocurrency Assets (MiCA) regulations by December 30.
The move, aimed at customers in the European Economic Area (EEA), is part of EU efforts to implement stricter controls on cryptocurrency assets. The EU’s cryptocurrency regulatory framework, known as MiCA, was introduced in June. However, it will come into effect from December.
Under the new regulations, the EU requires stablecoin issuers to hold a digital currency certification in at least one EU member state. The framework aims to protect European investors from fraud and risk, while strengthening innovation and economic competitiveness.
In a report by Bloomberg, a Coinbase spokesperson said:
“Based on our commitment to compliance, we plan to limit our provision of services to EEA users with respect to stablecoins that do not meet MiCA requirements by December 30, 2024.”
Coinbase will provide an update to EU customers in November, giving them the option to convert their stablecoins to EU-compatible stablecoins, such as Circle’s USDC and Euro Coin (EURC).
Last July, cryptocurrency payments company Circle became the first stablecoin issuer to obtain a digital currency license under the EU’s MiCA regulation.
Coinbase is not the only cryptocurrency exchange taking steps to meet EU requirements. Other platforms, including Bitstamp, OKX, and Uphold, are already moving to restrict access to stablecoins that do not meet MiCA regulations, including Tether’s USDT.
Last June, Bitstamp announced the removal of USDT to comply with MiCA.