Coinbase to Delist Stablecoins in EEA

(Reuters) – Coinbase (NASDAQ:COIN) will delist certain stablecoins in the European Economic Area (EEA) by the end of the year, as the cryptocurrency exchange braces for tougher regulations in the region.

The European Union’s landmark crypto regulatory framework, known as the Markets in Crypto-Assets (MiCA) regulation, was introduced in early 2023 and will be fully implemented by December.

This regulation requires issuers of stablecoins—crypto tokens whose monetary value is pegged to a stable asset to mitigate volatility—to adhere to strict transparency, liquidity, and consumer protection standards.

“Given our commitment to compliance, we intend to restrict the provision of services to EEA users in connection with stablecoins that do not meet the MiCA requirements by December 30, 2024,” said the top U.S. crypto exchange in an emailed statement.

In November, Coinbase will offer impacted EEA customers options to switch to authorized issuers, such as fintech firm Circle’s USDC and EURC, which are pegged to the U.S. dollar and euro, respectively.

Stablecoins have gained significant popularity recently, with financial giants like PayPal (NASDAQ:PYPL) adopting them and a rapid integration into mainstream finance of the once-nascent digital assets sector.