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By December 30, 2024, Coinbase will eliminate all stablecoins that do not comply with the EU’s Markets in Crypto-Assets (MiCA) regulations, affecting the European Economic Area (EEA), as reported by Bloomberg.
Coinbase is implementing these measures to conform to the region’s new regulatory framework, specifically targeting unapproved stablecoins such as Tether (USDT).
Europe Strengthens Regulations on Coinbase Stablecoins
Beginning December 30, Coinbase will limit services involving unapproved stablecoins, including USDT, throughout the EEA.
Coinbase will delist all unapproved stablecoins from its crypto exchange in the European Economic Area by year-end https://t.co/d361uOgj9S
— Bloomberg Crypto (@crypto) October 4, 2024
This decision follows the European Union’s complete implementation of MiCA regulations, which mandate that stablecoin issuers secure e-money authorization in at least one EU member state.
While stablecoin regulations became effective in June 2024, broader cryptocurrency regulations will take effect by December 31.
The forthcoming changes will have a significant impact on Coinbase stablecoins like USDT, which has not yet received approval for use within the EEA.
Other exchanges, including OKX and Bitstamp, have already begun to restrict access to non-compliant stablecoins in anticipation of the regulatory changes.
Coinbase, following this trend, will provide further updates in November. Users will have the option to convert their non-compliant stablecoins into compliant alternatives such as Circle’s USDC, which already satisfies MiCA’s criteria.
A spokesperson for Coinbase highlighted the company’s dedication to compliance, stating, “We plan to restrict services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024.”
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The MiCA regulations will necessitate significant changes in Coinbase’s operations in Europe.
The effect on stablecoins that do not fulfill the requirements is anticipated to be substantial, with options for users to transition to compliant alternatives, assisting Coinbase in maintaining its presence in the regulated market.
Coinbase Achieves Partial Success in SEC Case
In addition to the forthcoming regulatory changes in Europe, Coinbase has recently attained a partial victory in its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).
Coinbase has secured a partial victory against the SEC, gaining access to documents regarding the agency’s classification of tokens.#Coinbase #SEChttps://t.co/00wN737o01
— Cryptonews.com (@cryptonews) September 7, 2024
A federal judge granted the exchange access to important documents related to the classification of tokens as securities.
On September 5, 2024, Judge Katherine Failla of the Southern District of New York ruled that Coinbase’s request for documents was partially approved.
The case revolves around the SEC’s enforcement action, which accuses Coinbase of functioning as an unregistered securities exchange.
Paul Grewal, Coinbase’s Chief Legal Officer, remarked that the court’s ruling will lead to significant discoveries regarding the SEC’s position on digital assets.
The exchange had requested internal documents concerning the SEC’s application of securities laws to cryptocurrency, including statements made by SEC Chair Gary Gensler.
The post Coinbase to Remove Non-MiCA Compliant Stablecoins in Europe by Year-End appeared first on Cryptonews.
