Coinbase to Delist Non-Compliant Stablecoins by 2024

Coinbase Global Inc. plans to delist all stablecoins that do not comply with new EU regulations by the end of December 2024. This move aligns with the upcoming Markets in Crypto-Assets (MiCA) regulations, set to take effect on December 31, 2024. The MiCA framework seeks to standardize crypto asset regulations across the European Union, ensuring greater oversight and consumer protection within the European Economic Area (EEA).

Under MiCA, stablecoin issuers must secure e-money authorization to continue operating in the EU. Coinbase will target stablecoins that fail to meet these new standards and has pledged to update users in November, offering options to switch to compliant stablecoins, such as Circle’s USDC. By taking early steps toward compliance, Coinbase positions itself as a leader in adapting to the evolving regulatory landscape.

These regulatory changes are expected to significantly impact Europe’s stablecoin market. Companies like Tether Holdings Ltd., the issuer of USDT, may face challenges if they cannot obtain the necessary authorization under MiCA. This legal pressure may prompt other exchanges to follow suit, reshaping the stablecoin environment.

Several platforms, including OKX, Bitstamp, and Uphold, have already started restricting non-compliant stablecoins, signaling a trend toward regulatory alignment in the industry. Despite these stringent measures, demand for MiCA-compliant stablecoins, such as USDC, continues to grow. Circle, for example, has recently expanded USDC’s reach into Australia and the Asia Pacific region through a partnership with MHC Digital.

In related news, Coinbase’s Chief Legal Officer, Paul Grewal, criticized the U.S. Securities and Exchange Commission (SEC) for its inconsistent handling of cryptocurrency cases. He pointed out the mixed messages the SEC sends regarding whether digital-asset transactions are considered securities, creating confusion and uncertainty in the industry.