Crypto
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- Coinbase has announced plans to delist USDT and other non-compliant stablecoins in the EU by the end of 2024
- This move is in response to the EU’s Markets in Crypto-Assets (MiCA) regulation, which requires stablecoins to have an e-money license to operate in the EU
- Coinbase will provide European users with conversion options to compliant stablecoins, such as USDC
Coinbase has announced that it will delist Tether’s USDT and other stablecoins in the European Union (EU) that do not meet the compliance requirements of the Markets in Crypto-Assets (MiCA) law. The new regulations mandate that stablecoins must have an e-money license in order for them to operate within the European Economic Area (EEA) to continue operations, which Tether, among others, does not have. Coinbase aims to remove non-compliant assets by December 2024, offering users the option to convert to compliant stablecoins.
Crypto MiCA Regulation Impact Felt
The MiCA regulation, introduced in 2024, is aimed at standardizing the rules for crypto-assets across the European Union. It primarily targets stablecoins, ensuring issuers adhere to strict financial safeguards. Exchanges were warned earlier this year that they could not list stablecoins like USDT, which have not secured necessary licenses, and some have already taken steps to act.
Coinbase in fact recommended its users to swap USDT for USDC as far back as 2022, citing transparency concerns, but in a statement on Friday, it made the suggestion formal:
We are committed to offering a safe and compliant platform for our European users, which means making difficult decisions like delisting non-compliant stablecoins.
Users have again been encouraged to convert to alternatives such as USDC, which already complies with MiCA’s requirements.
Crypto Impact on Traders
The delisting will have a significant effect on the trading community, especially those reliant on USDT, which is the biggest by market cap and worldwide usage. Traders will need to either withdraw or convert their holdings, potentially leading to temporary liquidity disruptions.
Tether has yet to comment on the move, having maintained that its robust model will see it through the global regulatory clampdown. However, until it satisfies regulations like MiCA, exchanges will have
