By December 30, 2024, Coinbase will remove all stablecoins that fail to meet the EU’s Markets in Crypto-Assets (MiCA) regulations, impacting the European Economic Area (EEA), according to a report by Bloomberg.
Coinbase is taking these actions to align with the region’s new regulatory framework, specifically targeting unauthorized stablecoins like Tether (USDT).
Europe Tightens Rules on Coinbase Stablecoins
Starting December 30, Coinbase will restrict services involving unauthorized stablecoins, including USDT, across the EEA.
The decision follows the European Union’s full implementation of MiCA regulations, which require stablecoin issuers to obtain an e-money authorization in at least one EU member state.
While stablecoin regulations took effect in June 2024, broader crypto rules will come into force by December 31.
The upcoming changes will significantly impact Coinbase stablecoins like USDT, which has yet to secure approval for use within the EEA.
Several other exchanges, such as OKX and Bitstamp, have already taken steps to limit access to non-compliant stablecoins in preparation for the regulatory shift.
Coinbase, following suit, will provide additional updates in November. Users will be given the option to convert their non-compliant stablecoins into compliant alternatives like Circle’s USDC, which already meets MiCA’s requirements.
A Coinbase spokesperson emphasized the company’s commitment to compliance, stating, “We intend to restrict services to EEA users related to stablecoins that fail to meet MiCA requirements by December 30, 2024.”
The MiCA regulations will force major adjustments in how Coinbase operates in Europe.
The impact on stablecoins that don’t meet the criteria is expected to be considerable, with options for users to transition to compliant alternatives, helping Coinbase maintain its foothold in the regulated market.
Coinbase Wins Partial Victory in SEC Case
In addition to the upcoming regulatory changes in Europe, Coinbase recently secured a partial victory in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
A federal judge granted the exchange access to key documents concerning the classification of tokens as securities.
On September 5, 2024, Judge Katherine Failla of the Southern District of New York ruled that Coinbase’s request for documents was partially approved.
The case centers on the SEC’s enforcement action, accusing Coinbase of operating as an unregistered securities exchange.
Paul Grewal, Coinbase’s Chief Legal Officer, noted that the court’s decision will lead to crucial discoveries regarding the SEC’s stance on digital assets.
The exchange had sought internal documents on the SEC’s application of securities laws to crypto, including statements made by SEC Chair Gary Gensler.
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