(Bloomberg) -- Coinbase Global Inc. will delist all unauthorized stablecoins from its crypto exchange in the European Economic Area by year-end, a potential blow for tokens like Tether Holdings Ltd.’s USDT.
The European Union is set to fully implement new rules to oversee the crypto industry, known as MiCA, by the end of this year. Regulation of stablecoin issuers under MiCA took effect on June 30 and requires them to hold e-money authorization in at least one member state. Guidance for crypto exchanges and other companies operating in the bloc will kick in from Dec. 31.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” a Coinbase spokesperson said in a statement on Friday.
Coinbase will provide an update on its plans next month, including options for users to convert their stablecoins to EU-compliant versions like Circle Internet Financial Ltd.’s USDC.
Companies from Robinhood Markets Inc. to Revolut Ltd. are considering launching stablecoins to challenge the dominance of Tether, the world’s largest stablecoin issuer, which has yet to gain permission to offer its $120 billion USDT in Europe.
A Tether spokesperson reiterated an earlier statement that the company is working on a technology-based solution to providing its products in Europe.
Other exchanges like OKX, Bitstamp and Uphold have already moved to restrict access to Tether’s stablecoins in Europe ahead of MiCA taking full effect.
(Adds comment from Tether in the sixth paragraph.)
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