Coinbase to remove non-compliant stablecoins by December, under European laws, USDT could be at risk

• Coinbase has announced that it will remove stablecoins that do not comply with MiCA laws, according to the Bloomberg report.
• The European Union plans to adopt stricter laws to strengthen its control over the digital asset industry.
• Coinbase will begin removing assets that fall into this category starting December 30th.

Coinbase announced plans on Friday to remove stablecoins that do not comply with the European Union’s MiCA laws starting December 30, according to a Bloomberg report.

Coinbase to remove stablecoins as EU plans to strengthen MiCA laws

Coinbase has proposed to end support for stablecoins that do not comply with EU Markets in Crypto Assets (MiCA) regulations.

This follows the EU’s decision to step up its regulatory framework for the digital assets sector, according to Bloomberg.

“Guidelines for cryptocurrency exchanges and other blockchain companies will be introduced starting December 31,” the report said.

Coinbase has announced that users in the European Economic Area (EEA) will soon have the option to convert their assets to compliant stablecoins, including Circle’s USDC, in the coming months.

The delisting process will begin on December 30, as the company has underlined its commitment to adhere to regulatory standards in the region.

“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,” a Coinbase spokesperson told Bloomberg.

Coinbase’s action may restrict stablecoin issuer Tether, whose USDT token is not yet in compliance with MiCA laws.

Other exchanges, including OKX, Binance, Bitstamp and Uphold, have also taken steps to meet EU regulatory requirements regarding stablecoins, reducing support for stablecoins such as USDT for their European users to maintain EU compliance .

The European Commission extended MiCA’s oversight of stablecoin issuers on June 30, requiring them to hold an electronic money license from at least one EU member state. The aim is to improve oversight and ensure compliance among stablecoin providers operating in the region.

At the time of writing, only Circle’s USDC and EURC tokens have obtained the MiCA license, qualifying them to continue operating under European laws.