Coinbase, the largest cryptocurrency exchange in the United States, announced today that it will remove from its platform any stablecoin that does not comply with the rules established by the Regulation for the Cryptoasset Market, better known as the MiCA Law of the European Union, which enters effective December 30, 2024. This decision directly affects USD Tether (USDT), the largest stablecoin by market capitalization, which has failed to obtain the necessary requirements to operate in the EU.
“Given our commitment to compliance, we intend to restrict the provision of services to EEA (European Economic Area) users in relation to stablecoins that do not comply with MiCA requirements by December 30, 2024,” reported Coinbase in a statement.
The MiCA Law, which partially came into force on June 30, 2024, states that stablecoin issuers must register with European authorities to obtain a license. and keep 60% of its reserves in bank deposits. Paolo Ardoino, CEO of Tether, has expressed his disagreement with these demands, anticipating the departure of USDT from the European market.
Coinbase’s decision not only implies the withdrawal of USDT, but of all stablecoins that fail to comply with the new regulations. This will mean a significant change in the cryptocurrency landscape in Europe, where USDT has dominated the market, until now. This move will contribute to the diminishing role of USDT as the dominant stablecoin in Europe following the implementation of MiCA regulations.
In contrast, USD Coin (USDC), issued by Circle, has positioned itself favorably by becoming the first stablecoin to obtain an Electronic Money Institution (EMI) license in the region, as CriptoNoticias reported. This license allows USDC to operate legally in the EU, consolidating its position as a viable alternative to USDT.
Other platforms such as Binance and Kraken have already made similar moves to adapt to MiCA regulations. Binance announced restrictions on the use of unregulated stablecoins, while Kraken has evaluated options to prevent the departure of USDT from the European market through settlements in euros, as reported by this medium.
This series of events reflects a transition towards a more regulated market for cryptocurrencies in Europe, where stablecoins They must now meet strict standards to operate. The removal of USDT and other unauthorized stablecoins by Coinbase is a significant step in this direction, altering the balance of power in the cryptocurrency market on the old continent.
This article was created using artificial intelligence and edited by a human Editor.
