Update (December 12, 3:59 p.m. UTC): This article has been updated with comment from a Tether spokesperson.
Cryptocurrency exchanges in Europe are preparing to delist local non-compliant stablecoins under European cryptocurrency regulations as the enforcement deadline approaches.
Coinbase Europe, Coinbase Germany, and Coinbase Custody International delisted Tether’s USDt and five other stablecoins on December 13. Coinbase told Cointelegraph on Thursday that it plans to do so.
“Based on the latest information, we currently anticipate having to limit services to the following assets: USDT, PAX, PYUSD, GUSD, GYEN, and DAI,” Coinbase said. -Asset Control (MiCA).
Coinbase will continue to support the USD Coin (USDC) and euro-pegged EURC (EURC) stablecoins, which are jointly operated by Coinbase and US cryptocurrency company Circle.
Potential relisting is on the agenda
While MiCA’s Phase 1 stablecoin regime went into effect on June 30, the full regulatory framework for Crypto Asset Service Providers (CASPs) will be implemented from December 30.
Coinbase previously announced plans to delist the MiCA restricted stablecoin in October and asked users to convert their holdings of non-compliant coins to other stablecoins such as USDC.
Coinbase’s announcement regarding the delisting of USDT, PAX, PYUSD, GUSD, GYEN, and DAI on December 13th. Source: Algorand Foundation
Ranked as the third largest global exchange by trading volume, Coinbase accounts for a significant portion of USDT trading on its platform.
Tether’s USDT is the second-largest asset traded on Coinbase after Bitcoin (BTC), accounting for more than 12% of all transactions, with at least $1 billion traded each day, according to CoinGecko data.
These are the top 5 cryptocurrencies traded on Coinbase. Source: CoinGecko
“We regularly review the assets we offer to customers on our platform to ensure they meet regulatory requirements and will later evaluate reactivation of our services for stablecoins that achieve MiCA compliance,” a Coinbase spokesperson told Cointelegraph. .
A spokesperson declined to comment on USDT trading volume on the affected European platforms.
Compliance questions for USDT are mixed.
Coinbase calls USDT a “MiCA-restricted stablecoin,” but European regulators have not directly claimed that the stablecoin is not MiCA-compliant.
The European Securities and Markets Authority, one of the main regulators for MiCA compliance, has not yet announced the legal status of USDT and told Cointelegraph that discussions are ongoing.
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Tether CEO Paolo Ardoino has publicly criticized some aspects of MiCA regulations, revealing that Tether is developing technology-based solutions tailored to the European market.
Last November, Tether officially announced the discontinuation of its euro-based stablecoin EURt (EURT), citing community concerns. At that time, EURT’s market capitalization was only 0.02% of USDT’s market capitalization.
Tether remains committed to Europe.
Tether said it will continue to support new projects offering MiCA-compatible stablecoins, including EURq and USDq stablecoins from Dutch fintech company Quantoz Payments.
“In light of the recent MiCA changes, Tether is finalizing its long-term plans for the region, which we continue to work on,” a Tether spokesperson told Cointelegraph.
The official said Tether “disagrees with the hasty actions of a limited number of exchanges that may decide to take a premature position out of self-interest or simply because they have a superficial analysis of the situation since they own a large portion of a competitor.” said. “He added.
“We are confident that Tether will successfully navigate these changes and ensure that our efforts to drive financial inclusion and innovation continue to thrive, especially in regions where access to traditional financial systems is limited or ineffective.”
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