Coinbase will not allow European users to trade certain stablecoins because of MiCA regulatory constraints.
Coinbase Europe will delist a variety of stablecoin tokens, including Tether, the biggest fiat-pegged cryptocurrency, on December 13 in order to adhere to more general guidelines established by the Markets in Crypto-Assets framework.
Additionally, Coinbase will forbid the trade of stablecoins that were classified as MiCA noncompliant tokens, including Maker’s DAI, PAX, PYUSD, GUSD, and GYEN.
Notably, the cryptocurrency exchange will support EURC and Circle stablecoins for trade. In the past, Circle obtained the first stablecoin license in Europe under the new MiCA regulations.
Tether and other delisted stablecoins might be relisted in the future, according to Coinbase, if they comply with MiCA.
Tether had yet to respond to the delisting notice as of publication. Since MiCA was supposed to take full effect at the end of December, observers have debated Tether’s future in Europe for months.
Paolo Ardoino, the CEO of Tether, previously stated that the business plans to keep providing services to EU users.
There were little details of this plan, and it’s still being determined that Tether would leave Europe by 2025. Back in August, Ardoino did claim that MiCA might have endangered stablecoins.
With a market value of $140 billion and a circulating supply, Tether is the biggest stablecoin operator. Most of Tether’s business serves emerging areas like Latin America and Southeast Asia, even if the EU is a significant economic region.
The corporation also earned billions of dollars during the year by investing in data centers, mining operations, and Bitcoin.
Furthermore, Tether’s US Treasury Bills holdings may benefit the company significantly from US stablecoin regulations. However, it has yet to make clear plans to expand its footprint inside American territory.
