As the sector prepares for stricter regulation in the region, Coinbase announced on Friday that it will delist some stablecoins in the European Economic Area by the end of the year.
The Markets in Crypto-Assets (MiCA) legislation, a historic crypto regulatory framework adopted by the European Union in early 2023, is scheduled to be fully implemented by December.
Issuers of stablecoins, cryptocurrency tokens whose value is based on a reliable asset to guard against extreme volatility, must meet strict transparency, liquidity, and consumer protection requirements.
Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” the leading cryptocurrency exchange in the United States stated in an email.
The USDC and EURC issued by fintech company Circle, whose values are based on the US dollar and the euro, are examples of authorised issuers that Coinbase intends to provide EEA consumers in November. Due to their adoption by financial giants like PayPal and their quick assimilation into the mainstream of the once-emerging digital assets industry, stablecoins have seen a sharp increase in popularity in recent years.
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