Coinbase has announced that it will delist certain stablecoins in the European Economic Area by the end of the year, as the cryptocurrency exchange prepares for stricter regulations in the region.
The European Union's landmark crypto regulatory framework, known as the Markets in Crypto-Assets (MiCA) regulation, which was introduced in early 2023, is set to be fully implemented by December. This regulation mandates that issuers of stablecoins—cryptocurrency tokens whose value is pegged to a stable asset to prevent extreme volatility—must adhere to stringent transparency, liquidity, and consumer protection standards.
In an emailed statement, the leading U.S. crypto exchange stated, "Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024." Coinbase plans to offer affected EEA customers the option to switch to authorized issuers such as fintech firm Circle's USDC and EURC, which are pegged to the U.S. dollar and euro, respectively, in November.
Stablecoins have seen significant growth in popularity in recent years, with major financial players like PayPal adopting them, and the rapid integration of these once-nascent digital assets into mainstream finance.
