Coinbase cuts stablecoins ahead of EU regulations
Stricter regulations for crypto.
Coinbase announced on Friday that it will delist certain stablecoins in the European Economic Area (EEA) by the end of the year as the cryptocurrency industry prepares for stricter regulations in the region. The EU‘s new Markets in Crypto-Assets (MiCA) regulation, introduced in early 2023, will be fully implemented by December. This framework mandates that stablecoin issuers adhere to stringent transparency, liquidity, and consumer protection standards.
In line with its commitment to compliance, Coinbase intends to restrict services for EEA users concerning stablecoins that do not comply with MiCA requirements by 30 December 2024. The exchange will provide affected customers with options to switch to authorised stablecoins, including USDC and EURC from fintech firm Circle, which are pegged to the US dollar and euro, respectively.
Stablecoins have gained significant popularity in recent years, particularly as major financial institutions like PayPal adopt them. This growth reflects the increasing integration of the once-nascent digital assets sector into mainstream finance.