Tether’s USDT, along with five other stablecoins, will be delisted from Coinbase’s European platforms starting tomorrow, in reaction to the European Union’s crypto-asset regulations under MiCA, soon to come into effect on December 30, 2024.
According to Coinbase spokesperson “Based on the most recent information, we currently anticipate we will be obliged to restrict services of the following assets: USDT, PAX, PYUSD, GUSD, GYEN and DAI,” none of which are in compliance with MiCA’s requirements.
But Coinbase will still back USD Coin (USDC) and EURC, the euro-backed stablecoin, as they meet the criteria.
Under the MiCA rules, designed on June 30th, 2024, stablecoin issuers must obtain an e-money license in order to operate within the European Economic Area (EEA). Tether does not currently possess this requirement but discussions on the matter are ongoing.
Moreover, Coinbase had warned users in October 2023 about the possible delisting of non-compliant assets. Users holding the affected stablecoins will have the option to convert their holdings to USDC to ensure continuity of services.
The firm further noted that it would reconsider the possibility of re-enabling services for stablecoins that achieve MiCA compliance at some point in the future.
This move is likely to impact the liquidity of the European crypto market, as USDT is among the most used stablecoins in the world. However, such a decision could also be an opening for USDC and other compliant stablecoins to develop their market share in the region.
Meanwhile, Tether has said it is confident in operating with changing regulations; though, if it does not get licensed to comply with MiCA, more delistings from EU exchanges will likely follow.
Tether CEO Paolo Ardoino harshly criticized some exchanges for their “rushed actions.” In a statement, Tether said “It is confident it will successfully navigate these changes, ensuring that its efforts to drive financial inclusion and innovation continue to thrive, particularly in regions with limited or inefficient access to traditional financial systems”
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