Coinbase Plans to Delist Stablecoins Amid EU's MiCA Compliance Push

In response to the upcoming full implementation of the EU’s Markets in Crypto Assets (MiCA) regulation, Coinbase is reportedly planning to remove certain noncompliant stablecoins from its platform. A Bloomberg report suggests that the American crypto exchange will only offer these stablecoins in the European Economic Area (EEA) until the end of the year. This move is part of Coinbase’s broader strategy to adhere to global regulatory standards.

The MiCA regulation, set to take full effect soon, imposes stringent oversight on stablecoins, requiring issuers to comply with several financial safeguards. Notably, Coinbase has yet to confirm which stablecoins will be delisted, but one major player, Tether (USDT), remains noncompliant with MiCA's requirements.

Paolo Ardoino, CEO of Tether's issuer, has voiced concerns over the regulation, warning that MiCA could pose systemic risks to stablecoins and the broader banking system. A key sticking point is MiCA’s mandate that 60% of stablecoin reserves must be held in EU bank accounts, which Ardoino argues is insufficiently protected by EU deposit insurance caps of $100,000. This lack of sufficient insurance may explain USDT’s failure to meet MiCA's standards, leaving it vulnerable to delisting.

While Tether’s future on Coinbase looks uncertain, other stablecoins like Circle’s USDC and EURC have already gained MiCA compliance, positioning them as likely replacements. In fact, Circle was among the first stablecoin issuers to secure approval under MiCA, paving the way for Coinbase users to convert their holdings to compliant assets.

Other exchanges, including OKX, Bitstamp, and Uphold, have also begun removing noncompliant stablecoins in preparation for MiCA's enforcement