Coinbase Leads EU Stablecoin Purge: What’s Being Delisted and Will Other Platforms Join?

Coinbase Delists Non-Compliant Stablecoins

According to Bloomberg , Coinbase Global has announced that it will delist all non-compliant stablecoins from its crypto exchange in the European Economic Area (EEA) by the end of 2024.

The decision comes as the EU’s MiCA regulation is set to take full effect on Dec. 31, 2024. A cornerstone of the new law requires stablecoin issuers to obtain a special license from a member state.

The implications of the regulation could be far-reaching, with popular stablecoins like Tether’s USDT potentially facing removal from Coinbase unless they secure the necessary authorization.

The USDT stablecoin, issued by Tether, is the largest stablecoin in the world in terms of market capitalization and volume.

In a bid to minimize disruption to its users, Coinbase has said it will offer conversion options to compliant stablecoins, such as Circle’s USDC, in the coming months.

The Stablecoin Purge

In addition to Coinbase, several other crypto exchanges are also delisting non-compliant stablecoins in Europe in response to the upcoming MiCA regulations.

Binance, for example, announced in June that it had removed all stablecoins from its European platform.

Similarly, Uphold informed its European users that it has delisted six major stablecoins, including Tether (USDT), Dai (DAI), and Pax Dollar (USDP).

Other exchanges like OKX and Kraken are also reconsidering their stablecoin offerings in light of the new regulations.

Non-Compliant Stablecoins

Here’s a list of all the non-compliant stablecoins as per MiCA regulations.

The table has been compiled by CCN, drawing on publicly available data.

Why Is MiCA the Reason Behind Delisting?

The MiCA framework has prompted a scramble among crypto exchanges and stablecoin issuers to ensure compliance with the new rules.

The regulation, which takes effect by year-end, requires stablecoin issuers to obtain e-money authorization in at least one EU member state.

This means that companies like Tether, the issuer of the widely traded USDT stablecoin, must meet specific licensing requirements to continue operating in the EU.

In stark contrast, Circle, the issuer of the USDC stablecoin, has already secured an e-money license in France. However, not all companies are as far along in the process.