TL;DR
- Coinbase has delisted several stablecoins, including USDT, across its European platforms to comply with the EU’s MiCA regulations, effective today.
- Affected stablecoins include USDT, PAX, PYUSD, GUSD, GYEN, and DAI, while USDC and EURC remain supported.
- Users are advised to convert their holdings to compliant stablecoins like USDC, with a grace period provided for a smooth transition.
Coinbase has announced the delisting of several stablecoins, including Tether’s USDT, across its European platforms. This move comes as part of Coinbase’s efforts to comply with the European Union’s MiCA regulations, which aim to establish a comprehensive regulatory framework for crypto assets within the EU. The delisting takes effect today and affects a significant number of users across Europe.
ICYMI: As of today, @coinbase is notifying European users of the restriction of stablecoins that don’t meet MiCA requirements 🇪🇺
On #Algorand, two options are fully MiCAR-compliant and can be legally used in the EEA by 450 million people:
1️⃣ $USDCa from @circle #Algorand is… pic.twitter.com/iPULEjjFjP
— Algorand Foundation (@AlgoFoundation) December 11, 2024
Affected Stablecoins
The list of stablecoins being removed includes USDT, PAX, PYUSD, GUSD, GYEN, and DAI. These assets have been identified as non-compliant with MiCA regulations, prompting Coinbase to restrict their services.
Coinbase will continue to support USD Coin (USDC) and the euro-pegged EURC, which are jointly operated by Coinbase and the US crypto company Circle. The decision to delist these stablecoins is part of Coinbase’s ongoing commitment to regulatory compliance and ensuring the security of its users’ assets.
Impact on Coinbase’s Users
The delisting of these stablecoins is expected to have a significant impact on Coinbase’s European user base. Tether’s USDT, in particular, is one of the most traded assets on the platform, accounting for over 12% of all trades.
Users holding the affected stablecoins are advised to convert their holdings to compliant stablecoins like USDC before the delisting takes full effect. Coinbase has provided a grace period for users to make these conversions, ensuring a smooth transition and minimizing disruption.
Regulatory Compliance and Future Plans
Coinbase’s decision to delist these stablecoins underscores the importance of regulatory compliance in the rapidly evolving cryptocurrency landscape. The MiCA regulation, which came into effect in June 2024, mandates that all stablecoins in the European Economic Area hold an e-money license from an EU member state.
Coinbase has stated that it will assess the possibility of re-enabling services for stablecoins that achieve MiCA compliance at a later date.
The delisting of USDT and other stablecoins by Coinbase marks a significant development in the cryptocurrency market. As regulatory frameworks like MiCA continue to shape the industry, exchanges and crypto service providers must adapt to ensure compliance and protect their users.
