New Coinbase Stablecoin Delist Plan Will Take Effect By End Of 2024

Key Points:

• Coinbase will delist non-compliant stablecoins in the European Economic Area by the end of 2024 due to the MiCA regulations.
• Coinbase stablecoin delist plan will offer compliant alternatives, such as Circle’s USDC and EURC.

According to Reuters, Coinbase, the largest U.S.-based cryptocurrency exchange, said on Friday that it would remove non-compliant stablecoins from its list in the European Economic Area by the end of 2024.

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Coinbase Stablecoin Delist Plan Will Be Rolled Out in EU

The Coinbase stablecoin delist plans come as the crypto world braces itself for the arrival of more stringent regulations, such as the European Union’s Markets in Crypto-Assets framework.

MiCA will fully effect on December 31 and marks a sea change in the way the EU regulates the cryptocurrency industry. Stablecoin issuers under the new rules will be forced to adhere to strict transparency, liquidity, and consumer protection standards, in addition to obtaining e-money authorization from at least one EU member state. Stablecoin issuers will be regulated starting June 30.

Coinbase says in the statement it is committed to complying with the new regulations. Further details about the Coinbase stablecoin delist plan will be shared in November, along with transitioning options for customers who use the affected stablecoins.

Coinbase Offers Alternatives as Stablecoin Compliance Tightens

Coinbase says it will offer are stablecoins issued from licensed companies, including Circle’s USDC and EURC, whose values are pegged to the U.S. dollar and the euro, respectively. Coinbase is one of several exchanges adapting to the new regulatory environment, joining the likes of OKX, Bitstamp, and Uphold that have already moved to limit non-compliant stablecoins, including Tether’s USDT.

In the last couple of years, stablecoins have grown extremely fast, and even mainstream financial institutions such as PayPal have started implementing them in their services. At the moment, when competition is at a higher stake, companies like Robinhood and Revolut are planning to introduce their own stablecoin into circulation in order to join the fight with such leaders as Tether and Circle.