Crypto exchange Coinbase plans to de-list any unauthorized stablecoins in the European Union by December 30.
Crypto companies are racing to comply with the European Union’s Markets in Crypto Assets (MiCA) rules, which require firms to be authorized in at least one EU country.
Tether said MiCA introduces some complexities for stablecoins operating in the region and will introduce “a technology-based solution” to counter those challenges.
Crypto exchange Coinbase (COIN) plans to de-list any unauthorized stablecoins in the European Union by December to comply with the EU’s Markets in Crypto Assets rules (MiCA).
“Given our commitment to compliance, we intend to restrict the provision of services to EEA [European Economic Area] users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” Coinbase said in a statement shared with CoinDesk on Friday.
Coinbase, the second biggest exchange, after Bybit, according to CoinGecko data, has been racing alongside other companies to become compliant with the European Union’s MiCA rules which require firms to be authorized in at least one EU country. Rules for stablecoins came into force on June 30, which require stablecoin issuers to have an e-money license in an EU member state to be able to operate in the bloc of 27 nations.
Not all stablecoins have managed to get the necessary licenses in the EU. In July Circle became the first global stablecoin issuer to secure an Electronic Money Institution license in the region and is the second-largest issuer of stablecoins. Tether, which is the largest issuer of stablecoins, doesn’t have an e-money license in the EU.
Tether said that it commends EU for their efforts with creating MiCA but noted that it introduces some complexities for stablecoins operating in the region. “Tether commends EU regulators for their efforts in establishing a structured framework, as it plays a key role in fostering growth within the sector. However, as we have consistently expressed, some aspects of MiCA make the operation of EU-licensed stablecoins more complex and potentially introduce new risks to both local banking infrastructure and stablecoins themselves,” a spokesperson for the stablecoin issuer told CoinDesk in a statement.
“To address these challenges to support users in the region, Tether is developing a technology-based solution, which we will unveil in due course and will be tailor made to serve the necessities of the European market,” the spokesperson added.
Coinbase plans to share further details of its plan in November, and will provide options for affected European Economic areas customers to switch to stablecoins issued by appropriately authorized issuers, such as Circles’ USDC and EURC, it said in the statement.
Bloomberg was first to report the news about Coinbase’s move.
UPDATE (Oct. 4, 22:04 UTC): Updates to add Tether’s comment.
