Coinbase, one of the largest cryptocurrency exchanges in the world, has announced that it will be delisting Tether’s USDT and other stablecoins that do not comply with the new Markets in Crypto-Assets (MiCA) regulation in the European Union (EU).
MiCA, which is set to come into force in 2024, is a comprehensive regulatory framework for crypto assets in the EU. It aims to provide a level playing field for market participants and protect consumers.
Coinbase stated that the decision to delist USDT and other non-compliant stablecoins was made to ensure compliance with the new regulation. The exchange also noted that it is committed to providing its European customers with a safe and secure trading environment.
USDT, the largest stablecoin by market capitalization, has faced scrutiny in recent years over its reserves. Some critics have questioned whether Tether has enough U.S. dollars to back its USDT tokens.
The delisting of USDT and other stablecoins from Coinbase is a significant development for the cryptocurrency market. It could lead to a shift in the dominance of stablecoins in Europe, as investors may seek out alternative options that comply with MiCA.
It remains to be seen how other cryptocurrency exchanges in Europe will respond to the new regulation. Some may choose to delist non-compliant stablecoins, while others may seek to modify their offerings to comply with MiCA.
Key Points:
- Coinbase will delist USDT and other non-compliant stablecoins in Europe.
- The delisting is due to the new Markets in Crypto-Assets (MiCA) regulation.
- MiCA aims to provide a level playing field for market participants and protect consumers.
- The delisting could lead to a shift in the dominance of stablecoins in Europe.
