Coinbase will restrict European users from trading certain stablecoins, such as Tether, to meet MiCA regulatory requirements.
Starting December 13, Coinbase Europe will delist a series of stablecoin tokens, including Tether, the largest fiat-pegged cryptocurrency, to comply with the broader rules set forth in the "Markets in Crypto-Assets (MiCA)" framework.
Coinbase will also prohibit trading of PAX, PYUSD, GUSD, GYEN and Maker's DAI, which are classified as non-compliant with MiCA regulations.
Notably, the crypto exchange will continue to support trading of the Circle stablecoin and EURC. Circle has previously obtained a European stablecoin license, which is the first under the new MiCA law. Coinbase added that if Tether and other delisted stablecoins meet MiCA compliance requirements in the future, they may be relisted.
As of the time of writing, Tether has not publicly responded to the delisting notice. crypto.news' request for comment was also unanswered at the time of reporting.
Observers have been discussing Tether's fate in the European market for months, as MiCA is expected to fully take effect by the end of December. Previously, Tether CEO Paolo Ardoino had stated that the company plans to continue serving EU users. However, details of the related plans are scarce, and it is currently unclear whether Tether will exit Europe before 2025. Ardoino had pointed out in August that MiCA could pose risks to stablecoins.
Tether is the world's largest stablecoin operator, with a market capitalization and circulation of $140 billion. While the EU is a major economy, Tether's business is largely concentrated in emerging markets such as Latin America and Southeast Asia.
This year, the company has set profit records and has invested some of its earnings in Bitcoin, mining facilities, and data centers. Additionally, Tether's holdings of US Treasuries are expected to make it one of the main beneficiaries of US stablecoin policy. However, Tether has not yet clearly disclosed its specific strategy for expanding its business in the US domestic market.
Author's Note
Algorand Foundation @AlgoFoundation
As you may have seen (ICYMI): Starting today, @coinbase is notifying European users that it will be restricting stablecoins that do not meet MiCA requirements 🇪🇺
On #Algorand, there are two options that fully meet MiCAR compliance requirements and can be legally used by the 450 million people in the European Economic Area (EEA):
1️⃣ $USDCa from @circle
Among the few non-EVM chains natively supported by @circle for USDC, #Algorand is one of them.
$USDCa offers instant transaction finality and extremely low fixed fees, and is supported on all major centralized exchanges (CEXs).
2️⃣ $EURD from @Quantoz
Quantoz is one of the few crypto companies in Europe with an EMI license, allowing it to legally issue electronic money in Europe.
@Quantoz is fully regulated by the Dutch Central Bank, one of the most stringent central banks in Europe!
$EURD is not just a regular stablecoin, but an EMT, meaning it has no volatility (1 $EURD is always equal to 1 euro).
This is a true digital, programmable euro, exclusively issued on $ALGO and recognized by the Dutch Central Bank, suitable for supporting the digital euro 💶
