A change in European cryptocurrency oversight is forcing exchanges to take action
Cryptocurrency exchanges in Europe are taking significant steps to comply with the upcoming enforcement of the Markets in Crypto-Assets Regulation (MiCA). As the regulatory framework nears full implementation on December 30, 2023, major platforms, including Coinbase Europe, Coinbase Germany, and Coinbase Custody International, are delisting stablecoins that do not meet MiCA compliance standards. Among the assets being removed are Tether’s USDt and five other stablecoins: PAX, PYUSD, GUSD, GYEN, and DAI.
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
MiCA’s phase one regulations on stablecoins have been in effect since June 30, focusing on ensuring that stablecoins are transparent and meet specific operational and reserve requirements. As part of its preparation, Coinbase notified users in October about the delistings, encouraging conversions to compliant alternatives like USDC and EURC. USDC, co-operated by Coinbase and Circle, remains unaffected by the new rules and will continue to be supported.
These delistings are significant given Tether’s dominance in the stablecoin market. USDT is the second most-traded asset on Coinbase globally, accounting for over 12% of trades and more than $1 billion in daily volume. The removal of USDT could disrupt trading activity, particularly for users relying on the asset for liquidity and transactions.
Coinbase has left the door open for potential relistings of delisted stablecoins, contingent on their ability to achieve MiCA compliance in the future. Meanwhile, the European Securities and Markets Authority (ESMA) has not yet issued a final verdict on USDT’s compliance status, leaving some uncertainty around the asset’s future in the region.
Tether, the issuer of USDT, has voiced criticism of MiCA’s regulations, calling for a more technology-focused approach tailored to Europe’s crypto market. In November, Tether suspended its euro-backed stablecoin, EURt, citing low market demand and signaling its intent to focus resources on other areas. Tether’s CEO, Paolo Ardoino, has hinted at ongoing efforts to develop solutions that align with European standards.
The upcoming MiCA enforcement marks a pivotal moment for the European crypto market. As exchanges like Coinbase adapt their offerings, users are navigating changes that could redefine trading patterns. While stablecoin delistings may cause short-term disruptions, they reflect a broader shift toward regulatory clarity and market stability in the region.
Editor at the Big Blind, is a rising star in gambling journalism with a decade of experience, focusing on clear and accessible communication for a diverse audience.
