💡 Cryptocurrency exchange Coinbase has announced that by the end of 2024, it will cease support for all stablecoins that do not meet the requirements of the new EU Markets in Crypto-Assets Regulation (MiCA). This decision will affect a number of digital assets, including one of the largest stablecoins, USDT by Tether, if it fails to obtain the necessary certification.
🔵 MiCA, which will fully come into effect by December 2024, introduces stricter requirements for stablecoin issuers and crypto exchanges, including obtaining an e-money license in one of the EU countries and maintaining sufficient liquidity reserves. The new rules aim to ensure greater financial stability and prevent financial crimes, including money laundering and terrorist financing.
Coinbase will also offer users in the European Economic Area (EEA) the option to convert their assets to MiCA-compliant stablecoins, such as USDC, which is already compliant. MiCA strengthens transparency and consumer protection requirements, significantly impacting the stablecoin market in Europe.
🚀 This regulation is expected to open opportunities for competitors like USDC by Circle, as well as for new players in the market, such as PayPal or Revolut, who could take the place of Tether and other unsupported assets. Coinbase aims to ensure full compliance with European standards by offering safer and more regulated assets to users.
🔗 Learn more about this news here: Coinbase Announces Stablecoin Delisting in Europe
