Coinbase to Delist USDT in EU Amid Regulatory Changes

Coinbase Global Inc. has announced plans to delist all non-compliant stablecoins, including Tether's USDT, from its European platforms by December 30, 2024. This decision aligns with the European Union's new Markets in Crypto-Assets (MiCA) regulations, which aim to establish a comprehensive regulatory framework for cryptocurrencies across the EU.

The MiCA regulations, which took effect for stablecoin issuers on June 30, require these entities to secure e-money authorization in at least one EU member state. The broader implementation of MiCA guidelines for crypto exchanges will commence on December 31, 2024. Coinbase's spokesperson emphasized the company's commitment to compliance, stating that services related to non-compliant stablecoins will be restricted by the end of the year.

In November, Coinbase plans to provide an update detailing options for users to convert their holdings into compliant alternatives like Circle's USD Coin (USDC). This proactive approach positions Coinbase as a leader in adhering to regulatory standards within the cryptocurrency market.

The delisting could significantly impact Tether, the largest stablecoin issuer, which has yet to obtain the necessary permissions under the new EU framework. Other exchanges, including OKX and Bitstamp, have already limited access to non-compliant stablecoins ahead of MiCA's full enforcement. As the regulatory landscape evolves, Coinbase's strategy reflects a growing trend among crypto platforms to prioritize compliance and consumer protection.