Coinbase to cancel non-compliant EU stablecoins under new MiCA rules
The EU MCA was introduced in June, but won't go into effect until December.Coinbase will provide an update to EU customers in November on how to convert their stablecoins to EU.Circle was the first stablecoin issuer to accept e-money. License as per MiCA rules
Crypto exchange Coinbase is listing stablecoins that will not meet the EU Markets in Crypto-Assets (MiCA) until December 30.
The move, which targets customers in the European Economic Area (EEA), is part of the EU's efforts to tighten controls on crypto assets. The European Union's crypto regulatory framework, known as MCA, was launched in June. However, it will be implemented in December.
Under the new regulation, the EU requires stablecoin issuers to hold an e-money license in at least one EU member state. The framework aims to protect European investors from fraud and risk while fostering innovation and economic competitiveness.
In a report from Bloomberg, a Coinbase spokesperson said:
“Given our commitment to compliance, we intend to limit the provision of services to EEA users with stablecoins that do not meet MiCA requirements until December 30, 2024.”
Coinbase is expected to offer an update to EU customers in November, allowing them to convert their stablecoins to EU-compliant stablecoins such as Circle's USDC and Euro Coin (EURC).
In July, crypto payments company Circle became the first stablecoin issuer to receive an e-money license under EU MCA regulations.
Coinbase isn't the only crypto exchange taking steps to meet EU requirements. Other platforms, Bitstamp, OKX and Uphold are already moving to restrict access to stablecoins that do not meet MiCA regulations, including Tether's USDT.
In June, Bitstamp announced that it would remove USDT to comply with the MCA.
