Coinbase announced on Friday that it will delist specific stablecoins in the European Economic Area by the end of this year, as the cryptocurrency exchange prepares for stricter regulations in the region.
The European Union’s comprehensive regulatory framework, known as the Markets in Crypto-Assets regulation, which was introduced earlier this year, is set to take full effect by December. This regulation mandates that issuers of stablecoins—cryptocurrency tokens designed to maintain a stable value by being pegged to a stable asset—must comply with rigorous transparency, liquidity, and consumer protection standards.
In an emailed statement, Coinbase emphasized its commitment to compliance, stating, “We intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024.”
To assist affected EEA customers, Coinbase plans to offer options in November to transition to authorized stablecoin issuers, such as fintech firm Circle’s USDC and EURC, which are pegged to the U.S. dollar and euro, respectively.
The popularity of stablecoins has surged in recent years, with major financial players like PayPal increasingly integrating them into mainstream finance as the digital asset sector continues to mature.
