- Coinbase to delist non-MiCA compliant stablecoins by end of 2024 to meet EU regulations.
- Circle’s USD Coin trading surged 48% post-EU stablecoin regulation enforcement.
- Coinbase offers conversions to compliant stablecoins, bolstering regulatory adherence in the EU.
Coinbase has announced plans to delist stablecoins that fail to comply with the new rules by the end of 2024. This decision aligns with MiCA’s full enforcement, set to reshape the governance of digital assets within the EU.
A Coinbase spokesperson emphasized the company’s commitment to adherence, stating that services for European Economic Area (EEA) users will be restricted concerning non-compliant stablecoins from December 30, 2024, onwards.
The regulation, effective from June 30, mandates that all stablecoins offered in the EEA obtain an e-money license from at least one EU member state. This policy affects prominent tokens, including Tether’s USDt, which might face exclusion from the Coinbase platform unless it secures the requisite authorization.
Cryptocurrency Industry’s Compliance Rush
Coinbase is not alone in its rush to align with MiCA standards; other cryptocurrency exchanges like OKX, Bitstamp, and Uphold have already implemented restrictions on noncompliant stablecoins. The increasing need for regulatory approval is also prompting companies such as Robinhood and Revolut to consider launching their own stablecoins, potentially challenging the dominance of established players like Tether and Circle.
Furthermore, in a move to tap into the demand for euro-backed digital assets, the France-based fintech company Next Generation and the Ireland-based electronic money institution Decta have announced plans to reintroduce a euro-pegged stablecoin, EURT, on the Stellar blockchain. This initiative highlights the strategic shifts occurring as firms seek to leverage MiCA’s regulatory framework.
Trading Surge and Market Dynamics
The regulatory changes have notably impacted trading volumes. This was followed by a rise in trading volumes for Circle’s USD Coin (USDC) by 48 percent in July, immediately after the new Regulation on stablecoins in the EU came into force. This increase is a result of increased market acceptance of regulated digital currencies in the European market. Circle, one of the first stablecoin issuers to comply with MiCA’s standards, has seen a significant increase in its standing within the stablecoin market.
Coinbase’s strategy to offer conversion options to compliant stablecoins like USDC indicates a proactive approach to ensure compliance and solidify its market presence in Europe. As the December 2024 deadline approaches, the landscape of available digital assets in the EU is set to evolve, with compliant stablecoins likely gaining a competitive edge in the regulated environment.
The post Coinbase Prepares to Delist Noncompliant Stablecoins by 2024 End appeared first on Crypto News Land.
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