Coinbase to restrict non-compliant stablecoins in EU

Coinbase has announced that starting December 13, it will restrict stablecoins that do not comply with the Markets in Crypto Assets (MiCA) regulations in the European Union. 

This decision affects several stablecoins, including USDT (CRYPTO:USDT), PAX (CRYPTO:PAX), PYUSD (CRYPTO:PYUSD), GUSD (CRYPTO:GUSD), GYEN (CRYPTO:GYEN), and DAI (CRYPTO:DAI). 

The exchange confirmed that USDC (CRYPTO:USDC) from Circle and EURD (CRYPTO:EURD) from Quantoz are compliant and will remain available to users. 

“Dear Client, as a reminder, due to the new MiCA regulation, Coinbase will implement restrictions for stablecoin services that do not meet MiCA requirements,” stated Coinbase in its notice to clients.

The MiCA framework aims to standardise the crypto industry in Europe and protect consumers by imposing strict regulations on stablecoin issuers. 

Tether’s exit from the European market has opened opportunities for compliant alternatives like USDC and EURD. 

Algorand highlighted that these stablecoins could gain traction as they navigate this new regulatory landscape. 

In a strategic move, Tether has invested in Quantoz while scaling back its operations in Europe. 

Additionally, Binance announced a partnership with Circle to enhance its presence in the EU market. 

This partnership is significant as it combines resources to challenge Tether’s previous dominance in the stablecoin market. 

The regulatory shift is seen as an opportunity for other firms to capture market share previously held by Tether. 

As Coinbase prepares for these changes, it remains crucial for users to convert their holdings in non-compliant stablecoins into alternatives like USDC or EURD.