Crypto exchange Coinbase will delist stablecoins that fail to comply with the European Union's Markets in Crypto-Assets (MiCA) regulation for customers in the European Economic Area (EEA) by December 30.
This move aligns with the EU's effort to introduce tighter controls on crypto assets, requiring stablecoin issuers to obtain e-money authorization in at least one member state.
The new MiCA regulation, expected to take full effect in by January 2025, is part of a broader digital finance package aimed at standardizing the crypto landscape across the EU. It covers various aspects, including the issuance, offering, and trading of crypto assets.
MiCA divides crypto assets into categories such as electronic money tokens (EMTs) and asset-referenced tokens (ARTs), impacting fiat-backed stablecoins the most. The regulation has been hailed as one of the most comprehensive in the world.
Bitcoin Price Ticks Up Ahead of U.S. Jobs Report as Sell-Off ‘Nearing its End’
Bitcoin edged up to highs of $61,600 in early European trading today, as investors nervously await the U.S. Bureau of Labor Statistics' release of the September jobs report. At time of publication, the price of Bitcoin has pulled back to around $61,300, up 1% on the day, per data from CoinGecko. Market experts believe this data could play a pivotal role in shaping the Federal Reserve's policy direction in the coming months, potentially affecting crypto prices. Ethereum also showed a slight upti...
A Coinbase spokesperson told Decrypt that the exchange will provide details about a transition plan in November to help its European customers switch to compliant stablecoins, including USDC and EURC.
This follows Circle's recent move to secure an EU stablecoin license, becoming the first global stablecoin issuer to comply with MiCA.
IMF Urges El Salvador to Narrow Bitcoin Experiment
The International Monetary Fund (IMF) is still not pleased with El Salvador’s Bitcoin experiment but will continue to work with the country. At a press conference Thursday, the body’s spokesperson Julie Kozack was quoted saying that the IMF had recommended “limiting public sector exposure to Bitcoin,” according to a Reuters report. El Salvador made Bitcoin legal tender in the country back in 2021. The IMF—which has been in talks with El Salvador for years about a fund-supported program to stren...
“We regularly review the assets we make available to customers on our platform to ensure they adhere to applicable regulations. In November, we will share details regarding the transition plan to assist our EEA customers. This will include options for switching to stablecoins that have achieved compliance under MiCA, such as USDC and EURC,” the spokesperson said.
MiCA imposes stricter requirements on stablecoin issuers, who must maintain sufficient reserves to ensure the stability of their tokens. This part of the regulation directly affects platforms like Coinbase, as they are now required to delist stablecoins that fail to comply with these standards.
Edited by Andrew Hayward
