Coinbase will remove certain stablecoins from its platform in the European Economic Area (EEA) by the end of the year. The company made the announcement today (Friday), citing upcoming regulatory changes in the region.
Stablecoins are digital assets designed to maintain a stable value by being tied to a fiat currency or other asset. These tokens have become popular in recent years due to their relative price stability compared to othercryptocurrencies.
MiCA Enforces New Requirements
The European Union's Markets in Crypto-Assets (MiCA) regulation, introduced in 2023, is scheduled to take full effect in December. The regulation imposes strict requirements on stablecoin issuers, including transparency, liquidity, and consumer protection standards.
Coinbase has said it will provide its affected EEA customers with the option to switch to stablecoins issued by authorized firms. These options will include Circle's USDC and EURC, which are tied to the US dollar and euro, respectively.
The use of stablecoins has increased significantly, with major financial firms such as PayPal integrating them into their offerings.
????BREAKING NEWS:Coinbase is set to remove non-compliant stablecoins from its platform in the EU this December!On the other hand, Ripple's stablecoin, 'RLUSD', is fully compliant with MiCA regulations and is expected to launch this year!Get ready, because 'RLUSD' is poised… pic.twitter.com/OLcSUflRow
— Brett (@Brett_Crypto_X) October 4, 2024
Circle Complies with MiCA
Back in July, Circle announced its registration as an electronic money institution in France, as reported by Finance Magnates. This approval allows the company to issue stablecoins under the European Union's MiCA regulatory framework.
Circle, known for its USDC stablecoin, received the license from France's banking regulator, the Autorité de Contrôle Prudentiel et de Résolution. This registration enables Circle to issue USDC and EURC within the EU, in compliance with MiCA's requirements. Additionally, the company has launched Circle Mint in France, allowing businesses to mint and redeem Circle stablecoins.
This article was written by Tareq Sikder at www.financemagnates.com.
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