This is Why MiCA is Making Coinbase Restrict Stablecoins
According to Algorand, Coinbase began notifying its European customers that tomorrow it will begin restricting stablecoins that do not comply with Market for Crypto-Assets (MiCA) requirements.
The company identified two stablecoins that are still available: Quantoz’s EURD and Circle’s USDC. Tether’s exit from Europe has had a severe impact on both assets.
Coinbase prepares for MiCA
This news comes from the Algorand Foundation, Proof of Stake Blockchain and Cryptocurrency. Algorand issued a notification directly from Coinbase via social media postal and lists MiCA-compliant stablecoins that users can switch to. Circle and Quantoz, both options embroiled in new EU fight Stablecoin Dominance.
“Dear customers, we would like to remind you that due to the new MiCA regulations, Coinbase will implement restrictions on stablecoin services that do not comply with MiCA requirements. Based on the latest information, we currently expect to have to restrict services for the following assets: USDT, PAX, PYUSD, GUSD , GYEN and Day”, Coinbase claimed in its notice.
MiCA is a comprehensive new crypto-asset regulatory framework In the EU, its emergence is creating huge new market opportunities. Before this year, Tether was the dominant stablecoin in this market, but it soon became apparent that Stablecoin giants fail to meet compliance requirements. Many companies are considering this There is an opportunity to surpass Tether’s market share.
For its part, Tether is making strategic moves. on the one hand, It has significantly scaled back its EU operations November. The company also Significant investment in Quantozthe company launched one of two MiCA-compliant stablecoins identified by Algorand. Another approved asset is Circle’s USDC, which represents a direct push into Tether’s old territory.
yesterday, Binance announces partnership with Circleappears to be expanding in Europe. Coinbase partially owns Circle, so this public gesture occurred despite the competition between the two large exchanges. With the combination of capital and resources, the two companies can make significant progress in the EU market.
However, for non-stablecoin crypto companies like Algorand, this “MiCA market opportunity” may not affect normal operations. The company enjoys An impressive rebound in recent monthsits announcement claims that users can seamlessly use Quantoz’s USDC or EURD.
In other words, the impact of this “MiCA market opportunity” on companies like Algorand is waning. Its users can enjoy the same experience, and whether Tether can regain market dominance is not the company’s concern.
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