Coinbase to remove some stablecoins from Europe ahead of new regulations By Reuters

(Reuters) – Coinbase (NASDAQ: ) will remove certain stablecoins from the European Economic Area by the end of the year, the cryptocurrency exchange said on Friday, as the industry prepares for tighter regulation in the region.

The European Union’s benchmark crypto regulatory framework, known as the Markets in Crypto Assets (MiCA) regulation, introduced in early 2023, is due to be fully implemented by December.

It requires issuers of stablecoins — crypto tokens whose monetary value is tied to a stable asset to protect against wild volatility — to meet strict standards of transparency, liquidity and consumer protection.

“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in relation to stablecoins that do not meet MiCA requirements until December 30, 2024,” the leading US cryptocurrency exchange said in an emailed statement. – email.

Coinbase plans to offer EEA customers in November options to switch to authorized issuers such as USDC and EURC from fintech firm Circle, whose value is pegged to the US dollar and euro respectively.

Stablecoins have gained significant popularity in recent years as financial heavyweights like PayPal (NASDAQ: ) adopt them and the digital asset sector’s rapid integration into mainstream finance once emerged.