- Coinbase to delist the unauthorised stablecoins in the European Economic Area (EEA).
- Coinbase plans to update the conversion of non-compliant stablecoins.
Cryptocurrency exchange Coinbase Global Inc. has announced plans to delist stablecoins that do not comply with the new requirements across the European Economic Area (EEA) by the end of this year.
The European Union’s Markets in Crypto-Assets (MiCA) regulation moves toward full implementation by the end of 2024. Coinbase plans to update the conversion of non-compliant stablecoins to approved options like USDC. Other exchanges, such as Bitstamp and OKX, have restricted access to Tether’s USDT before the regulations.
Moreover, Coinbase plans to offer the impacted EEA customers the option to switch to authorized issuers like Circle’s USDC and EURC, whose value is pegged to the U.S. dollar and euro.
Impact of MiCA in the Stablecoin Market
MiCA was adopted by the European Parliament earlier this year to introduce a comprehensive legal framework for cryptocurrencies, stablecoins, and crypto-assets service providers (CASPs).
Besides, fiat currency pegged stablecoins are crucial to the crypto market as they offer stability in the volatile market. To meet MiCA’s requirements, stablecoin issuers have to hold reserves equivalent to their circulating supply. Furthermore, to ensure the assets maintain their peg.
On the other hand, the issuers must obtain an e-money authorization. Stablecoin providers that fail to meet these regulations will no longer be allowed to operate within the EU. MiCA’s implementation might limit the stablecoin availability in the EEA.
Recently, retail investment platform Robinhood has expanded its cryptocurrency services throughout Europe. European Union customers can now transfer digital currencies in and out of the app.
The new functionality supports cryptocurrencies like Bitcoin, Ethereum, Solana, and USDC. In December 2023, Robinhood launched its crypto trading service, Robinhood Crypto, in the EU. The service allowed users to buy and sell cryptocurrencies, but the access to move them out or to their own self-custodial wallet was restricted.
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