Coinbase has announced plans to delist Tether’s USDT and other stablecoins that fail to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations by December 30, 2024. This move reflects Coinbase’s effort to meet the new rules, which require stablecoin issuers to hold an e-money license in an EU member state. Tether has yet to secure this license, leading to its removal. Coinbase will allow users to convert their holdings to compliant stablecoins, such as Circle’s USDC.
The EU’s MiCA regulations, which began governing stablecoin issuers on June 30, require that stablecoins available in the European Economic Area (EEA) secure an e-money license in at least one EU member state. This directly impacts major tokens like USDT, which could be delisted from Coinbase unless it obtains the necessary approval.
In its statement, Coinbase reiterated its commitment to complying with MiCA regulations, planning to halt services related to non-compliant stablecoins in the EEA by the end of 2024. European users will have the option to convert their assets to compliant alternatives, such as USDC, in the coming months.
This decision could significantly affect traders in the EU who hold non-compliant stablecoins like USDT. They may need to either convert these assets or withdraw them before the delisting deadline. The removal of popular stablecoins might impact market liquidity, especially as traders shift to alternatives, which could create temporary constraints and increase the risk of slippage during large trades.