Coinbase Leads EU Stablecoin Purge: What’s Being Delisted and Will Other Platforms Join?

Coinbase Delists Non-Compliant Stablecoins

According to Bloomberg , Coinbase Global has announced that it will delist all non-compliant stablecoins from its crypto exchange in the European Economic Area (EEA) by the end of 2024.

The decision comes as the EU’s MiCA regulation is set to take full effect on Dec. 31, 2024. A cornerstone of the new law requires stablecoin issuers to obtain a special license from a member state.

The implications of the regulation could be far-reaching, with popular stablecoins like Tether’s USDT potentially facing removal from Coinbase unless they secure the necessary authorization.

The USDT stablecoin, issued by Tether, is the largest stablecoin in the world in terms of market capitalization and volume.

Coinbase has said it will offer conversion options to compliant stablecoins, such as Circle’s USDC. This will happen in the coming months to minimize disruption to its users.

The Stablecoin Purge

In addition to Coinbase, several other crypto exchanges are delisting non-compliant stablecoins in Europe. This is in response to the upcoming MiCA regulations.

Binance, for example, announced in June that it had removed all stablecoins from its European platform.

Similarly, Uphold informed its European users that it has delisted six major stablecoins, including Tether (USDT), Dai (DAI), and Pax Dollar (USDP).

Other exchanges like OKX and Kraken are also reconsidering their stablecoin offerings in light of the new regulations.

Non-Compliant Stablecoins

Here’s a list of all the non-compliant stablecoins as per MiCA regulations.

The table has been compiled by CCN, drawing on publicly available data.

Why Is MiCA the Reason Behind Delisting?

The MiCA framework has prompted a scramble among crypto exchanges and stablecoin issuers to ensure compliance with the new rules.

The regulation, which takes effect by year-end, requires stablecoin issuers to obtain e-money authorization in at least one EU member state.

Companies like Tether, the widely traded USDT stablecoin issuer, must meet specific licensing requirements to continue operating in the EU.

In stark contrast, Circle, the issuer of the USDC stablecoin, has already secured an e-money license in France. However, not all companies are as far along in the process.

An Opportunity For Innovation

Georgy Slavin-Rudakov, CMO at all-in-one crypto ecosystem for business B2BINPAY, told CCN: “The balance between driving adoption and slowing innovation is becoming increasingly clear as regulatory frameworks like MiCA begin to reshape the European crypto industry. While regulations in the industry were previously seen as negative by the crypto market, now the perception has shifted, though not fully positive.”

“On the one hand, regulatory clarity encourages greater institutional and retail participation, as seen in Coinbase’s moves to ensure compliance by delisting unauthorized stablecoins like USDT. On the other hand, these rules also pose challenges for established players, forcing them to adapt or face exclusion from key markets,” Slavin-Rudakov said.

Tether’s announcement of a new technology solution tailored to Europe highlights how regulation can be an opportunity for innovation.

“The need for compliant stablecoins opens the door for new formats, which may redefine how the market evolves. As competitors like USDC gain momentum, it remains unclear whether Tether can maintain its dominance as the regulatory environment continues to evolve. This creates a natural competitive environment, but I am uncertain whether all popular cryptocurrencies will withstand the new regulatory changes,” the CMO of B2BINPAY added.