Cryptocurrency exchange Coinbase will remove six stablecoins from platforms in Europe due to the upcoming implementation of stricter regulations under the European Markets in Crypto-Assets Regulation (MiCA) law.
According to the company’s statement, from December 13, the following stablecoins will be removed from Coinbase Europe, Coinbase Germany, and Coinbase Custody International:
However, Coinbase will continue to support USD Coin (USDC) and the Euro-linked stablecoin, EURC, which comply with MiCA requirements. Thus, users will need to switch to these alternatives and exchange their stablecoins from the list above for EURC or USDC.
The MiCA regulation, whose first phase came into effect in June 2024, requires stablecoin issuers to adhere to strict standards of transparency, liquidity, and consumer protection. Full implementation of the law for crypto asset service providers (CASP) will occur on December 30.
Coinbase had previously warned users about plans to remove stablecoins that do not meet MiCA regulations. Other exchanges, such as OKX and Bitstamp, have already restricted access to USDT in anticipation of regulatory decisions.
USDT is the second most popular asset on the Coinbase platform after Bitcoin and accounts for over 12% of trading, with a daily trading volume of around $1 billion. The removal of USDT and other stablecoins could significantly impact user activity in Europe.
Despite this, EU regulators, including the European Securities and Markets Authority (ESMA), have not yet published an official status of compliance (or non-compliance) of USDT with MiCA standards.