Coinbase is reportedly planning to discontinue support for certain stablecoins in the European Union (EU) by the end of the year.
According to a spokesperson for the crypto exchange, Coinbase will delist stablecoins in Europe that do not comply with the EU’s Markets in Crypto-Assets Regulation (MiCA).
“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.”
MiCA establishes rules for the supervision, consumer protection, and environmental safeguards of crypto assets. The legislation includes measures to combat financial crimes such as market manipulation, money laundering, and terrorist financing.
MiCA also places stablecoin issuers under the European Banking Authority and requires them to maintain sufficient liquid reserves. The part of the legislation related to stablecoins became effective in June, with the rest scheduled to be implemented in December.
Compliance with MiCA could result in Coinbase no longer supporting Tether’s USDT, the leading stablecoin by market capitalization. The second-largest stablecoin, USDC, became compliant with the legislation earlier this year.
In 2018, Coinbase and stablecoin firm Circle collaborated to create USDC and managed the asset through the Centre Consortium until last year. Circle announced last August that it would take over all governance and operational responsibilities for USDC internally.
At that time, Coinbase also revealed its plans to acquire an equity stake in Circle.
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