Coinbase To Delist Multiple Stablecoins Including USDT Over MiCA Compliance
In the latest development, Coinbase has Announce Tether (USDT) and five other stablecoins are scheduled to be delisted in Europe by December 13, citing compliance issues with the EU Markets in Crypto-Assets (MiCA) framework. The exchange noted that it will continue to support MiCA-compliant assets such as USD Coin (USDC) and EURC.
“Due to new regulations from the European Crypto-Asset Market (MiCA), Coinbase will implement restrictions on stablecoin services that are not MiCA compliant,” Coinbase wrote in an announcement to users on Wednesday.
Which stablecoins are affected?
In addition to USDT, retail customers of Coinbase Europe and Coinbase Germany will see Paxos Standard Price (PAX), PayPal USD (PYUSD) and Gemini Dollar (GUSD) delisted. It will also affect GYEN and Maker Protocol’s DAI.
Coinbase notes that U.S. Dollar Coin (USDC) and Euro Coin (EURC) are MiCA compliant and will continue to be supported. Currently, the platform advises users to sell or convert assets that do not comply with the new regulatory requirements before the restriction date, or to move these tokens off the exchange.
The first phase of MiCA, implemented in June 2024, sets out stricter guidelines for stablecoins, requiring full compliance by December 30. Coinbase encouraged users to convert restricted tokens to approved tokens and said it would re-evaluate delisted assets once they comply.
Although the MiCA regulator has not officially called USDT non-compliant, Coinbase’s actions reflect its efforts to comply with European regulatory standards.
Tether expresses criticism
Tether criticized the rushed implementation and confirmed its commitment to creating MiCA-compliant solutions for the region. This regulatory change comes at a critical moment for the European cryptocurrency market as exchanges adapt to stricter rules.
Notably, USDC issuer Circle received a valid license from MiCA this summer, which has attracted the attention of exchanges looking for a major stablecoin suitable for the EU market. Earlier this week, Binance partnered with US stablecoin issuer Circle to accelerate the adoption of the USDC stablecoin.
On the other hand, a September report from Consumer Research criticized Tether’s USDT for a lack of transparency into its U.S. dollar reserves, warning that this could be risky for consumers. However, Tether defended itself with certifications and security measures but did not provide a comprehensive audit by a reputable company.