- Coinbase Europe will remove USDT and other stablecoins from its platform by December 13 due to MiCA regulations.
- Affected tokens include PAX, PYUSD, GUSD, GYEN, and DAI, while USDC and EURC remain compliant.
- Users must sell, convert, or transfer non-compliant assets before the restriction date.
- Tether criticizes exchanges’ rushed decisions, suggesting potential conflicts of interest.
- Circle’s USDC gains momentum as a MiCA-compliant alternative in European markets.
Coinbase’s European division announced the removal of several major stablecoins, including market leader USDT, from its platform to align with new European Union regulations. The decision affects millions of users and reshapes the regional stablecoin landscape ahead of the Markets in Crypto-Assets (MiCA) implementation.
Regulatory Compliance Drives Delisting
The exchange will halt trading and holding services for Tether (USDT), Paxos Standard (PAX), Paypal USD (PYUSD), Gemini Dollar (GUSD), GYEN, and DAI starting December 13. Coinbase confirmed that USDC, developed in partnership with Circle, and EURC will continue operations as MiCA-compliant assets.
Tether responded to the development with criticism, stating: "Tether disagrees with the rushed actions of a limited number of exchanges that may decide to take an early stance, either because of self-interest since they own a big piece of a competitor or simply had a superficial analysis of the situation."
Market Impact and Industry Response
The regulatory shift has accelerated industry partnerships, as evidenced by Binance‘s recent collaboration with Circle to promote USDC adoption. This alignment follows Circle’s acquisition of a MiCA-valid license earlier this year.
Questions about stablecoin transparency persist, particularly regarding USDT. A September Consumers’ Research report highlighted concerns about Tether’s reserve transparency, despite the company’s daily transparency updates and quarterly attestations.
Coinbase maintains the possibility of reinstating delisted assets that achieve MiCA compliance in the future. A Coinbase spokesperson emphasized the company’s commitment to regulatory standards, stating: "We aim for the highest standards for regulatory compliance and will continue the same with respect to MiCA."
European users have until December 13 to:
- Sell affected stablecoins
- Convert to compliant assets
- Transfer tokens to external wallets
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