Coinbase to delist non-compliant stablecoins for EU clients over MiCA rules

Crypto exchange Coinbase will remove unauthorized stablecoins from its European branch by the end of the year in response to incoming MiCA regulations.

According to information obtained by Bloomberg, US-based cryptocurrency exchange Coinbase will remove all non-compliant stablecoins from its European exchange by the end of this year as the company takes action to comply with the European Union’s new crypto regulations.

The CryptoAsset Markets framework for stablecoin issuers, which came into force in June, requires companies to have e-money authorization in at least one European member state. Additional regulatory rules for exchanges like Coinbase will come into effect on December 31.

A spokesperson from Coinbase told Bloomberg that the exchange plans to restrict services related to non-compliant stablecoins, including Tether (USDT), through December 30. The exchange will roll out an update in November explaining to users their options for converting their assets into alternatives. As Circle’s USD Coin (USDC).

In early July, French blockchain analysis firm Kaiko said in a research note that Circle benefited from MiCA regulations and experienced significant increases in daily transaction volumes for its stablecoins following the introduction of the new requirements.

Still, industry leaders have expressed concerns about the regulations. Tether CEO Paolo Ardoino, for example, warned that strict cash reserve requirements could pose systemic risks for banks.

The delisting trend is not limited to stablecoins, as Kraken recently announced that it would halt trading and deposits of Monero (XMR) in the European Economic Area due to regulatory changes following similar moves by Binance and OKX.