- Coinbase to delist all unauthorized stablecoins by year-end to comply with EU’s new MICA regulations.
- Terra’s USDT, the largest stablecoin by market cap, might be delisted as it hasn’t yet received authorization in Europe.
- The move could impact USDT’s price and follows similar actions by other exchanges like Bitstamp and OKX.
Coinbase announced its plans to delist all unauthorized stablecoins from its platform by the end of the year due to new MiCA requirements. The exchange is focusing on tokens in the European Economic Area as the European Union prepares to introduce new policies for the cryptocurrency industry.
The Markets in Crypto-Assets Regulation (MiCA) will primarily focus on crypto assets not yet regulated by existing financial services regulations.
The new framework aims to:
- Strengthen the integrity of the cryptocurrency market
- Ensure financial stability by regulating public offerings of crypto assets
- Educate consumers about the potential risks of digital currencies.
Under the new regulation, stablecoin issuers must obtain electronic money authorization in at least one member state. This rule took effect on June 30th, and policies and guidelines for crypto-based companies, including exchanges, will begin on December 31st.
Tether’s USDT May Face Delisting
Tether’s USDT, the largest stablecoin by market cap, could be delisted by Coinbase because it has not yet received authorization to offer its stablecoin in Europe. Delisting could affect USDT’s price over time, as Coinbase has 8.8 million monthly transacting users.
According to a Coinbase spokesperson, the exchange is committed to complying with the new regulations and plans to delist every stablecoin that does not meet MiCA’s requirements by December 30th, 2024.
Along with laying out options for users to make necessary conversions from stablecoins, Coinbase will provide a follow-up on its plans come November. A good number of leading cryptocurrency exchanges like Bitstamp and OKX have already taken action to disable access to the USDT on their platforms.
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