Coinbase reportedly plans to reduce support for certain stablecoins in the European Union (EU) by the end of the year.
This is what a spokesperson for the crypto exchange says Bloomberg the exchange will remove stablecoins in Europe that do not comply with the EU Markets in Crypto-Assets Regulation (MiCA).
“Given our commitment to compliance, we intend to restrict the provision of services to EEA users related to stablecoins that do not comply with MiCA requirements by December 30, 2024.”
MiCA provides rules for the supervision, consumer protection and environmental safeguards of crypto assets. The legislation includes measures aimed at reducing financial crimes, including market manipulation, money laundering and terrorist financing.
MiCA has also placed stablecoin issuers under the European Banking Authority and requires them to maintain sufficient liquid reserves. The part of the legislation covering stablecoins came into effect in June, while the rest has planned to be rolled out in December.
Coinbase’s compliance with MiCA could mean it no longer supports Tether’s USDT, the top stablecoin by market cap.
The second largest stablecoin, USDC, complied with the legislation this summer.
Coinbase and stablecoin company Circle co-founded USDC in 2018 and jointly managed the asset through the Center Consortium until last year.
Last August, Circle CEO Jeremy Allaire announced that his company would bring all of USDC’s governance and operational responsibilities in-house to streamline management of the stablecoin.
Coinbase said at the time it would buy an equity stake in Circle.
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