In a latest development, Coinbase has done just that announced plans to delist Tether (USDT) and five other stablecoins in Europe by December 13, citing compliance issues with the EU’s Markets in Crypto-Assets (MiCA) framework. The exchange noted that it will continue to support MiCA-compatible assets such as USD Coin (USDC) and EURC.
In an announcement to its users on Wednesday, Coinbase wrote that “Due to the new European Markets in Crypto-Assets (MiCA) regulations, Coinbase will implement restrictions on stablecoin services that do not meet MiCA requirements.”
Which stablecoins are affected?
With the exception of USDT, retail customers on Coinbase Europe and Coinbase Germany will see the removal of Paxos Standard Price (PAX), PayPal USD (PYUSD), and Gemini Dollar (GUSD). It also affects GYEN and Maker Protocol’s DAI.
Coinbase pointed out that USD Coin (USDC) and EUR Coin (EURC) are MiCA compliant and will continue to be supported. For now, the platform suggests that its users sell or convert assets that do not meet the new regulatory requirements before the restriction date, or transfer those tokens from the exchange.
The first phase of MiCA, implemented in June 2024, mandates stricter guidelines for stablecoins, with full compliance required by December 30. Coinbase encouraged users to convert restricted coins to approved coins and stated that it will reassess delisted assets once they comply.
Although MiCA regulators have not officially declared the USDT non-compliant, Coinbase’s actions reflect its efforts to align with European regulatory standards.
Tether expresses criticism
Tether criticized the hasty implementation and reaffirmed its commitment to creating MiCA-compatible solutions for the region. This regulatory change is a key moment for European crypto markets as exchanges adapt to stricter regulations.
Notably, USDC issuer Circle secured a MiCA-valid license this summer, attracting the attention of exchanges looking for a major stablecoin suitable for EU markets. Earlier this week, Binance partnered with US-based stablecoin issuer Circle to accelerate the adoption of the USDC stablecoin.
On the other hand, a September report from Consumers’ Research criticized Tether’s USDT for its lack of transparency about its dollar reserves, warning that this could be risky for consumers. However, Tether defended itself with certificates and security measures, but did not ensure a full audit from a reputable company.
Credit : coinpedia.org
