Coinbase, one of the world’s leading cryptocurrency exchanges, has announced plans to delist Tether’s USDT stablecoin in Europe starting December 13, 2024. This decision is in response to the European Union’s Markets in Crypto-Assets Regulation (MiCA), which enforces stricter compliance measures for crypto assets. In addition to Tether’s USDT, Coinbase will also delist five other stablecoins, including PAX, PYUSD, GUSD, GYEN, and DAI, due to their noncompliance with MiCA regulations.
The delisting marks a significant regulatory shift for Coinbase and its users, as Tether’s USDT accounts for over 12% of all trades on the platform, with daily trading volumes exceeding $1 billion. Despite this, Coinbase will continue to support MiCA-compliant stablecoins such as USD Coin (USDC) and the euro-pegged EURC, jointly operated by Coinbase and Circle.
While the delisting aligns with MiCA’s stablecoin regime introduced on June 30, 2024, Coinbase hinted at the possibility of relisting assets that achieve MiCA compliance in the future. A spokesperson stated, “We regularly review the assets we make available to customers on our platform to ensure we are meeting regulatory requirements.”
Tether, however, disagrees with Coinbase’s decision, citing it as rushed and superficial. The company remains confident in navigating these regulatory changes, focusing on driving financial inclusion and innovation in Europe. Additionally, Tether is supporting the development of new MiCA-compliant stablecoins, such as EURq and USDq, through Dutch fintech company Quantoz Payments.
As the MiCA framework takes full effect on December 30, 2024, Coinbase’s decision highlights the growing regulatory scrutiny in the European crypto landscape.
