As the European Union prepares to enforce tighter regulations on crypto assets, Coinbase announced that it will delist stablecoins that don’t comply with the EU’s Markets in Crypto-Assets (MiCA) regulation for customers in the European Economic Area (EEA). The move comes ahead of the MiCA regulation’s full implementation, set for January 2025, with Coinbase’s delisting deadline set for December 30, 2024.
The MiCA regulation is part of a broader initiative by the EU to standardize and regulate the crypto landscape across its member states. MiCA focuses heavily on stablecoins—cryptocurrencies pegged to fiat currencies—by requiring issuers to obtain e-money authorization in at least one member state and maintain adequate reserves to ensure token stability. This regulation, considered one of the most comprehensive of its kind, categorizes crypto assets into groups such as electronic money tokens (EMTs) and asset-referenced tokens (ARTs), which directly impacts fiat-backed stablecoins.
Coinbase confirmed that it will provide a detailed transition plan in November, allowing its European customers to switch to compliant stablecoins, such as USDC and EURC. This comes shortly after Circle, the issuer of USDC, secured the first EU stablecoin license in compliance with MiCA. The licensing marks a significant step toward regulatory clarity for stablecoin issuers operating in Europe.
“We regularly review the assets we make available to customers on our platform to ensure they adhere to applicable regulations,” a Coinbase spokesperson told Decrypt. “In November, we will share details regarding the transition plan to assist our EEA customers. This will include options for switching to stablecoins that have achieved compliance under MiCA, such as USDC and EURC.”
The new rules also require stablecoin issuers to maintain reserves sufficient to back their tokens, placing greater pressure on crypto platforms like Coinbase to remove non-compliant assets. By delisting non-compliant stablecoins, Coinbase is aligning itself with MiCA’s strict requirements, reinforcing its commitment to regulatory compliance as the EU prepares to become one of the most tightly regulated crypto markets globally.