Introduction
Coinbase Europe will delist several major stablecoins—including USDT (Tether), PYUSD (PayPal USD), and others—by December 13, 2024, in compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA). This move impacts crypto users and exchanges across Europe ahead of the regulatory deadline.
👉 Stay updated on compliant stablecoins to safeguard your portfolio.
Why Coinbase and Other Exchanges Are Delisting USDT
Under MiCA, stablecoin issuers must adhere to stringent regulatory requirements by December 30, 2024. Key delistings include:
- USDT (Tether)
- PAX (Paxos Standard)
- PYUSD (PayPal USD)
- GUSD (Gemini Dollar)
- GYEN (GMO Yen)
- DAI
Coinbase will continue supporting MiCA-compliant stablecoins like:
- USDC (USD Coin)
- EURC (Euro-backed stablecoin)
Action Required: Users holding non-compliant stablecoins must convert them to authorized alternatives before delisting.
Tether’s MiCA Compliance Challenges
Tether’s USDT faces scrutiny as the European Securities and Markets Authority (ESMA) evaluates its compliance. Key developments:
- Paolo Ardoino, Tether CEO, has criticized parts of MiCA but assures efforts to align with EU standards.
- Tether discontinued its EURt stablecoin, shifting focus to EURq and USDq (Quantoz Payments).
👉 Explore MiCA-compliant alternatives for seamless transitions.
Coinbase’s Compliance Strategy
Coinbase’s phased approach:
- December 13, 2024: Delist non-compliant stablecoins.
- December 30, 2024: Block EEA customer access to non-MiCA stablecoins.
This aligns with MiCA’s e-money license requirement for all EEA stablecoins.
Broader Impact of MiCA on Stablecoins
Key Consequences:
- Exchanges: OKX, Bitstamp, and Uphold are already restricting non-compliant stablecoins.
- Issuers: Must secure EU licenses or face delistings.
- Users: Need to verify holdings’ compliance to avoid disruptions.
Example: Binance may limit or delist "unregulated" stablecoins in the EU due to licensing gaps.
MiCA: Europe’s Pioneering Crypto Framework
Overview:
- Implemented: June 2024.
- Goal: Unified crypto regulation across the EU.
Benefits:
- Single licensing for exchanges/wallet providers.
- Enhanced consumer protections.
Unresolved Issues:
- Effects on decentralized projects.
- Long-term stability of stablecoin markets.
FAQs
1. Which stablecoins are being delisted by Coinbase?
Answer: USDT, PYUSD, PAX, GUSD, GYEN, and DAI.
2. What should I do if I hold USDT?
Answer: Convert to USDC or EURC before December 13.
3. Will Binance delist USDT in Europe?
Answer: Likely, unless Tether secures MiCA compliance.
4. What’s the deadline for MiCA compliance?
Answer: December 30, 2024, for full enforcement.
5. Is DAI considered non-compliant?
Answer: Yes, due to its decentralized issuance model.
Final Thoughts
The December 13 deadline marks a pivotal shift for stablecoins in Europe. With Coinbase and Binance adapting, users must prioritize compliant assets to avoid disruptions.